The term “ultrasound money” has been thrown around quite a bit in the Ethereum (ETH) community, often describing the network’s potential to become a deflationary asset with better tokenomics than Bitcoin (BTC). While some proponents believe this narrative is well-founded, others argue it is overstated and based on overly optimistic assumptions.
Is The Ethereum “Ultrasound Money” Narrative Exaggerated?
In a post on X, antiprosynthesis.eth, a developer, challenged the “ultrasound money” narrative, arguing that it is often accompanied by jargon that may conceal the reality of Ethereum’s monetary policy. Specifically, the analyst believes the narrative is a bit “overboard” and loaded with “a bunch of pseudo-scientific hocus pocus” that might mislead ordinary users.
Adopting a neutral view, antiprosynthesis.eth, Ethereum’s monetary policy is, most importantly, designed to be sustainable without the dangerous pitfalls of hyperinflation or excessive deflation. The developer argues that striking a balance in token emissions is critical.
In Ethereum’s case, this is achieved by burning a portion of gas fees. Following the activation of EIP-1559 in 2021, the first smart contracts platform changed its bidding system, creating a system where the network sets a base fee with the allowance for a user to “tip” the validator. The base fee is burnt, helping the network become deflationary–or, as researchers argue, sustainable.
Go to Source to See Full Article
Author: Dalmas Ngetich
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
