With EIP 1559, Has ETH Become Ultra Sound Money?

On today’s episode of “The Breakdown,” host NLW discusses:

Proposed amendments to the infrastructure bill Notable EIP 1559 changes “Ultra-sound” money meme explained Amendment proposals came from a variety of political figures, including Sen. Ted Cruz’s bid to scrap the crypto provision altogether. A more realistic option, however, came from Sens. Wyden, Toomey and Lummis, who chose to insert a definition excluding non-custodial intermediaries.

In the main discussion, the London hard fork to Ethereum took place early this morning. The changes aimed to improve the user experience on the network and included the introduction of a maximum bidding tip, increased block size in times of high demand and the change to burn the base fee.

The base fee burning modification has sparked conversation about a potentially powerful side effect. In new EIP-1559 transactions, the protocol will burn the ETH used for to pay the base fee. If more ETH is burned this way than is issued, it will make ETH deflationary. If bitcoin’s fixed supply constitutes “sound money,” does ether’s declining supply “ultra-sound?”

[douglasstewart]

I am an investment maximalist. Thanks for the great content.

[NyquistLP]

NLW, breaking down the most relevant news everyday

[alanhaston]

Rolling back to reclaim 150M dollars does NOT sound like human non intereference

[gianboontiong]

Brilliant analysis, my simplistic thoughts are that btc is digital money, payments, etc with finite amount..Eth is smart contracts, etc...i will stick to btc...hodl...thanks.

[magnetic-pulse]

Thanks for the update on the infrastructure bill .
Perhaps congress could cut out a lot of the
pork in the bill, thus have more money by spending less.

[xeromys]

Yeah nah, def not sound money. Centralised, pre-mined, monetary policy could change again anytime, crap coin. Distributed universal turing machine but not sound money

[PlantForge]

Imo eth made a critical engineering mistake by continually modifying its base layer protocol. In the real world layered scaling is the proper engineering solution.

[JamesAllenJr]

ETH has a completely different proposition and it's a johnny come lately. In No way does it rival Bitcoin. It's like a distant cousin.

[theliftedbar]

Burn coal it will become ultra sound money.