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![AminCad Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::24680810.png) AminCad Ξ🐬🔊 - evm/acc [@AminCad](/creator/twitter/AminCad) on x 2514 followers
Created: 2025-07-23 05:42:57 UTC

A little known fact is that ETH's maximum theoretical inflation rate decreases over time as it's a function of the total supply. As total supply increases, the maximum theoretical inflation rate decreases. At 120.5M ETH, it is 1.65%. At 220M, it is 1.22%.

Note this is a theoretical maximum, in the event that:

X. XXX% of ETH is staked
X. The amount of ETH burned from the EIP-1559 base fee is zero, due to very low onchain congestion

In practice that has meant that ETH's inflation rate is often below XXX% and sometimes even negative.

If Ethereum successfully executes on the development roadmap and sees growing adoption, then it will also experience growing ETH burn from EIP-1559. So, combined with the gradually decreasing issuance rate, it will see growing deflationary pressures.


XXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1947895189361856676/c:line.svg)

**Related Topics**
[gdp growth](/topic/gdp-growth)
[inflation](/topic/inflation)
[eths](/topic/eths)
[ethereum](/topic/ethereum)
[coins layer 1](/topic/coins-layer-1)

[Post Link](https://x.com/AminCad/status/1947895189361856676)

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AminCad Avatar AminCad Ξ🐬🔊 - evm/acc @AminCad on x 2514 followers Created: 2025-07-23 05:42:57 UTC

A little known fact is that ETH's maximum theoretical inflation rate decreases over time as it's a function of the total supply. As total supply increases, the maximum theoretical inflation rate decreases. At 120.5M ETH, it is 1.65%. At 220M, it is 1.22%.

Note this is a theoretical maximum, in the event that:

X. XXX% of ETH is staked X. The amount of ETH burned from the EIP-1559 base fee is zero, due to very low onchain congestion

In practice that has meant that ETH's inflation rate is often below XXX% and sometimes even negative.

If Ethereum successfully executes on the development roadmap and sees growing adoption, then it will also experience growing ETH burn from EIP-1559. So, combined with the gradually decreasing issuance rate, it will see growing deflationary pressures.

XXX engagements

Engagements Line Chart

Related Topics gdp growth inflation eths ethereum coins layer 1

Post Link

post/tweet::1947895189361856676
/post/tweet::1947895189361856676