Recently a new update has been made to the Ethereum network 'London Hard Fork'.
In this update, the EIP1559 was finally executed and it changed completely the economics of the ETH tokens.
I've made a video guide that explains exactly how, and how it will affect the ether price:
In the EIP1559 the developers created A transaction pricing mechanism that includes a fixed-per-block network fee that is always BURNED and dynamically expands/contracts block sizes to deal with transient congestion.
In the past – all the gas fees were earned by the Etheruem miners, and now there is a big portion of the eth fees that instead of being sent to the miners, is getting burned.
Once eth coins are burned, they are completely removed from the circulation supply and it creates more scarcity for ETH tokens.
This is a game-changer update and I think that it will empower the ETH token since it's the first time that ether will become a deflationary asset.
The more people are using Ethereum – more eth is getting burned – less eth in supply – eth price will go up. In this video we will talk about the Ethereum London Hard Fork, we will understand that is EIP1559, and will observe the website watch the burn that shows us exactly how much ether is being burned and minted every block.
submitted by /u/sheetsjohn16