Ethereum
A Proof of Stake Network which allows transacting and execution of smart contracts against payment of gas in the native token $ETH.
Categories:
Layer1
Updated:
2023-03-10
Tags:
Proof of Stake
Ticker:
ETH
Token Strength.
Token Utility:
Gas. $ETH is used to pay for transaction on the network.
Demand Driver:
Demand mainly comes from the gas fee to be paid in $ETH.
Value Creation:
Payment network and foundation to run smart contracts. Think DAO, dApp or NFT The more users transact, the more the project gains in value - more people everyone can transact with. The ecosystem gains with each new user, application and transaction
Value Capture:
ETH can be used to pay for transactions on the network. With Ethereum 2.0, ETH can be staked to secure the network and receive a yield. In a way, the more people use the network, the more $ETH is required to fuel transactions.
Business Model:
A percentage of transaction fees goes to stakers, who can earn a yield on their staked $ETH.
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Protocol Analysis.
| Problems & Solutions | The recent tokenomics changes (EIP-1559 & Merge) are yet to be digested and their impact needs to be further observed |
|---|---|
| Predecessors | Bitcoin |
Investment Take
... coming soon
Tokenomics Timeline.
2015-07-30
Ethereum Launch
Ethereum launches as PoW Blockchain
2021-08-05
EIP-1559
Changes in fee distribution and introduction of burning of part of the fee, taking $ETH out of circulation.
2022-09-06
Ethereum 2.0 Merge
Ethereum moves to Proof of Stake
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Allocation and Emission.
No calculation connected
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Resources.
Author.
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