Announcing ETHZilla's Ethereum School 🦖🤓 Every Friday, ETHZilla will teach you something that you may not know about Ethereum. Today's lesson: Ethereum's monetary policy. Ethereum doesn't have a supply cap like Bitcoin - instead, it has an issuance cap that ensures long-term security for the chain. This issuance cap is calculated as follows: Max Annual ETH Issuance = 166.3 × √(Staked ETH). The annual issuance of ETH dynamically adjusts based on how much ETH is staked - more ETH staked means more issuance; less ETH staked means less issuance. And even if 100% of all ETH was staked, the maximum issuance rate would be just ~1.51% a year. Additionally, Ethereum also burns a portion of all fees paid in ETH thanks to the EIP-1559 mechanism. This ETH is burned forever and can never be unburned. More fees paid = more fee burn. Due to the fee burn, since The Merge that took place on September 15th 2022, the net issuance rate of ETH has been a tiny ~0.139%! Lastly, as you've probably gathered by now, all newly issued ETH is paid out to Ethereum validators that must stake ETH to join and secure the network. We'll be back next week as ETHZilla is always hungry for more ETH knowledge 🦖