Thread by @TheCryptoLark

#ethereum will be under going the so called "Triple Halving" as part of the ETH 2.0 upgrade. This is a highly significant economic event for the asset which has serious implications for the price of ETH in the coming years

Thread

First let's understand how much Ethereum is mined every day right now.

Daily block rewards paid out to miners are currently around 12,800 ETH a day

etherscan.io/chart/ethersup…

This means that every day there is 25.6 million dollars a day worth of sell pressure for Ethereum! And because we are in a proof of work system miners are constantly selling, dumping on the market. Why? Because miners run a cash business. We are in a mine and dump economy for ETH

However, Ethereum is about to undergo a massive upgrade that will fundmentally change ETH forever. Devs are fast tracking "The Merger" which will end proof of work forever and usher in the proof of stake era. The Merger could happen by the end of 2021, or perhaps early 2022.

The first obvious implication of this upgrade is the transition from a mine and dump economy to a stake and restake economy. Proof of stake encourages saving since the more ETH you have the more you make. Proof of work encourages selling.

The other wildly important aspect of The Merger is that ETH will undergo a 90% reduction in daily emission. Basically from 12,800 a day to 1,280 a day!

Yearly inflation from 4.3% down to 0.43%

This is equivalent to 3 Bitcoin halvings, and is only months away!

The crazy thing is even with daily miner dumping supplies of ETHER on exchanges continue to reach record lows. Showing that the market is absorbing the miner supply flow and then some. This supply flow will be cut 90% soon. This is NOT priced in yet IMO.

We also must factor in EIP 1559 which will introduce fee burning which will be another factor to make ETHER rarer and moon the price.

Had EIP 1559 been active the last year it would have burned around 8,000 ETH per day. And soon only 1280 a day will be made.

Moon math things

And this is all happening at a time when there is record demand for access to the Ethereum blockchain for Defi and NFTs, meaning that the ETHER asset is in record demand.

Summary
90% supply emission drop coming + shift to stake and HODL economy + fee burning + soaring demand = MOON

Part of the many reasons why I keep stacking ETH