Cryptocurrency Q&A
Is ETH deflationary?
Is ETH deflationary?
CryptoElite
Sat Jan 04 2025
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6 answers
1714
I've been hearing a lot about Ethereum recently and its potential as a deflationary asset. I'm curious to know if ETH is really deflationary and how its economic model works.
6 answers
Caterina
Mon Jan 06 2025
Ethereum exhibits perpetual buybacks.
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BitcoinWarrior
Mon Jan 06 2025
This economic mechanism suggests that Ethereum operates in a deflationary manner.
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benjamin_rose_author
Sun Jan 05 2025
Officially, Ethereum maintains an inflation rate of 0.6%.
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alexander_smith_musician
Sun Jan 05 2025
However, due to an innovative process known as the burn mechanism, Ethereum's inflation is counteracted.
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Leonardo
Sun Jan 05 2025
The burn mechanism functions akin to a programmatic perpetual stock buyback mechanism.
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