Arbitrum Stylus is coming, Blobs burning ETH & more - The Daily Gwei Refuel #759 - Ethereum Updates

Transcript

hello everyone welcome to another episode of the day reuel where cup latest news in the system I'm your host Andy the 3rd of April 2024 right everyone let's get into it so some ETF news to kick off our episode today but it's nothing I guess like I guess noteworthy I just feel like I need to explain a couple of things about this so there is uh this filing that happened happened today that uh was I guess people were looking at it and they were thinking you know what does this mean is this Communications between the SEC and the issuers you know is this actually what we've been looking for as I've said before you know if we don't see Communications by like mid April maybe a little bit later than that we can safely say that the ETFs just aren't going to be approved based on the fact that the

paperwork won't be done in time by by May 23rd here um but there was basically an announcement from this uh Twitter account Phoenix news. where they said the SEC filed uh grayscale spot eth ETF conversion notice of filing of amendment number one to a proposed rule change to list and trade shares of the grayscale ethereum trust now my understanding this is not back and forth between the SEC and grayscale what it is essentially is some of the plumbing being put in place to potentially uh you know trade these things once they get listed trade the E ETFs once they get listed so I yeah I couldn't find much more information on this to be honest I was waiting for some of the ETF experts to weigh in but I think only James weighed in and he

basically said that this was a nothing burgar so I mean I defer to The Experts when I'm not sure of things um but yeah doesn't seem like any anything of a big deal here but the reason why I wanted to bring up the ETF stuff again is because there's been a couple of uh podcasts out recently that I highly recommend that you go listen to the first one is from Laura Shin where she basically interviewed two lawyers about the ETF all about it you know about the rumors or I guess like reports that the SEC is going after uh eth for being a security you know that sort of stuff I listened to it it was a great episode you know highly recommend going and listening to it it's on Laura shins onchain podcast you can just Google for it there I don't have the link handy right now and there

was also an episode that I haven't listened to yet but people have said that they they really like it and that's the one with um with bankless with black rock so they talked about a bunch of different things on there so you go listen to that and there's actually a third one as well which I think I've mentioned before but it was the one bankless did with bitwise um and I think I've talked about this in the daily way Discord Channel a little bit but the main thing people are focusing on is that the bitwise guys believe that it would be more bullish if the ETFs were approved you know towards the end of the year because uh there would be more Plumbing in place for more access to be uh you know had in the trafi world because there'd be more kind of infrastructure put in place to trade

these things to to buy and sell these things I don't necessarily disagree with that where you know the longer it goes on the more I guess infrastructure gets set up for the BTC ETFs which then can immediately be applied to the eth ETFs but at the same time like if they deny they being the the SEC deny the E ETFs on May 23rd and let's just say they deny the the the one on May 23rd which I believe is Arc may or vanck may 24th is is another one and then May 30th I believe is the gray scale conversion and then that you know we have like a stuttering of ones after that all the way until August where most of them expire or most of them have their final deadlines including black rocks but the logic is that uh or some people are thinking that okay well the ETFs are

going to get denied you know they're very confident in that but they're going to get denied uh you know gradually they're not all going to get denied at once and I guess that's another open question that we have here um but yeah I mean I do agree with the bitwise guys that I guess like it could be more bullish being approved at a later date because there'd be more infrastructure in place which mean potentially more inflows now I do want to say one last comment on the ETF stuff before I move on here there's been a lot of talk lately about the ETFs in the context of that people are very convinced now that these things the E ETFs are getting denied and the SEC is just fishing for a reason to deny them that's why they're doing their expedition uh trying to get information about e as an asset to try

and kind of I guess like label it as a security that's why they've been doing the correlation analysis stuff you know so on and so forth now I think I mentioned this months ago where I said that you know if the ETF were to be denied it would be because of just crappy politic political reasons it wouldn't be based on the facts and that's what seems to be happening in the background here but at the same time we don't have any hard evidence of this yet there is no SEC suit against like the ethereum foundation for example there is really just reports of various different players in the ecosystem being served subpoenas by the SEC in order to you know to gather information now we don't know what information they requested um we just know that well we believe that one was sent to the ethereum foundation

so people are assuming that the SEC is kind of like probing for any reason they can find in order to deny the ETF because they know they're going to get sued if they deny them so they I think want to you know find a reason to be able to deny them and then if they get sued over it you know I guess like make the odds more in their favor so to speak of of those lawsuits there but in saying that even the lawyers on Laura Shin's podcast argued that they believe that the SEC would ultimately lose any case there were to bring against the etherum foundation or anyone related to eth being a security here um and you know maybe they don't even bring a case towards any any uh I guess like any party here maybe they just say they believe ether is a security and because

of that they need to do more work you know determining each status and that means I have to deny these ETFs at this date right so as I've said you know plenty of times before it's not going to be based on the facts it's going to be based on politics and feelings and uh on the market impact side of this you know if everyone the way markets work is that they're forward looking right like if you've been in markets long enough you know that they're forward-looking they pric things in especially things that are quite loud like for example the BTC ETF started being priced in all the way back in I believe June yes we didn't really or BTC didn't really break out of 30k until like October because June was when Black Rock filed for the ETF and then October was when grayscale won

their lawsuit and then then we had like the coin Telegraph um intern post that the ETFs were approved and then BTC rocketed the 30k came back down but then went up because the market basically showed its hand saying that the market was waiting to essentially bu uh by BTC but it wanted to get like the best entry that it could it was happy waiting but then uh everyone kind of froed in after that and then obviously grayscale won their case and then the rest is history from there so when it comes to I guess the eth ETF right now I truly believe that the market has not priced in an approval it has priced in a denial for the E ETFs and I've I think I've gone through this before but I just want to rehash this point here because it's been a topic of discussion in the deadly way

Discord Channel and other private chats that I'm that I'm in with my eth friends um essentially you know the general Vibe is that well because eth BTC has really just been down you know down only or kind of like sideways uh for for quite a while now and because eusd is relatively weak you know compared to the wider Market it stands to reason that the that a denial is being priced in and that means that when the denial actually comes or if it actually comes on May 23rd like does that mean that ether is going to go up in value instead of down because once you get to May 23rd and and that you know the news is out there does it become a by the news event because if everyone's already sold everyone's already shorted eth or everyone's already kind of offside eth because they

were pricing in the denial here then who's left to sell that's the the kind of question at that point is anyone actually going to sell on the denial or is E just going to go up because everyone already priced in the denial right so that I I don't believe that that's like hm or anything like that you know I still think they're going to get approved on May 23rd but obviously the window is closing here guys obviously I'm like the last man standing at this point in time um and you know I I think as I said like if in the first couple of weeks of April we don't really hear anything from the SEC then just based on the time it would take to do the paperwork yeah it's probably not going to happen right know adjust my view at that point in time you know I'm not

going to give up just yet I want to be I want to go until like as late as I can just based on principle but uh you know as I've explained in detail before based on the facts and circumstances they should be approved based on the way the SEC acts and Gary gensler's feelings we know that uh you know there's a high chance that they won't be approved just based on that there but then the thing is is that if they do get approved on May 23rd like the market hasn't priced that in either so the market has priced sorry the market hasn't priced that in so the market has priced in a denial right and if a denial happens then I believe eth is not going to sell off on that and and it depends on what what you know what price eth is at that point in

time you know maybe until May 23rd eth goes up to alltime high and then sells off once the ETFs get denied right but I'm talking about if we're in the same situation we are in now where eth BTC hasn't really performed eth USD is lagging the General market here I do believe that you know eth is going to actually just perform well after you know after it gets denied and then on the approval front this is where it gets I gu like a bit funny because if it is going to be approved on May 23rd we're probably going to see signs of that before May 23rd and then will the market really you know really quickly rate eth up if it g it starts gaining confidence in it being approved again uh and the market tends to to work like that because it did that with the um you know

the grayscale winning their lawsuit against the SEC the market was like oh like this means that the BTC ETFs are probably going to get approved and we need to get in and that's why the um you know the market was caught offside with the the the fake news of the ETS being approved in October and showed its hand basically so I think that the market right now does not want to show its hand when it comes to eth uh and people could call this hm or whatever they want but based on the facts and circumstances and based on the way that markets work I really do think that it could be uh you know even if they get denied it doesn't necessarily have to be bad for eth now of course if they get denied on May 23rd it's just a when not if of when they're going to get approved

from there and we're going to play out the circus as it will be uh from there but that's my general thoughts on on the market side of things there but I know I said didn't want to go on too long about this but it's something that unfortunately I think about too much because everyone asked me questions about it so I figured it was worth clarifying again but enough on the ATF stuff diving into the ethereum news from uh the last 24 hours so first up we have the delivery at dawn which was the ARP 4844 one minute short uh that came out uh with with denune uh there was an nft for this and the mint is now closed so I mean it closed on Sunday uh and Trent van epia one of the people behind this tweeted out some uh some stats about about it so there was 35,000 mints with

19,000 unique Ms 138 eth is going to the protocol Guild and 384 e is going to noun Dow for the production costs of the 4844 short there so that is a lot of money going to the protocol Guild guys from just this single nft mint here I mean 138 e at current price of eth let me do some math here that is a whopping almost half a million dollar worth of eth going into the protocol Guild um just for this nft basically uh which is just crazy to me but you know it's awesome to see that people are are you know very much willing to uh essentially um mint these nfts very much willing to spend the money that's needed here in order to uh to support the ethereum core developers in order to kind of get a

piece of History if you will as well since the 4844 short was the first time that an EIP ever had like an animation or a short made about it I'm hoping that we can you know keep doing that as as time goes on but yeah I just wanted to highight that there hope you guys had a chance to Mint that I remember I shouted it out on the Fu a bunch of times so hopefully you Meed that one there all right so we have some updates about Devcon which is happening in Bangkok in Thailand this year so you can see here the Devcon account tweeted out saying we are thrilled to introduce the road to Devcon events calendar so you can find all of the events and communities uh near you and what's going to be happening uh you know leading up to obviously uh Devcon and then when

when you're at Devcon there as well so just a reminder here Devcon is taking place from November 12th to November 15th in Bangkok Thailand the M yeah the main conference is taking place over 3 days but usually there's like I I guess like a solid week of events that kind of surround that and then maybe even up to like two weeks of events that surround that so it's good to be um you know I guess like if you can be in Bangkok uh maybe a couple days before and a couple days after Devcon there's always events happening uh here and there but yeah this will be the website to kind of I guess like uh keep a tabs on and and and look into and basically keep bookmarked so that you know which events are happening where and when they're happening uh in especi especially around

Devcon so you can apply to attend those events there so yeah I'll link that in the YouTube description below for you guys to go check out and bookmark on your end all right so a lot has been happening in Blob land recently I know I said that we needed to wait a few weeks before we got some great insights into what was happening with blobs after they went live so obviously they went live on March 13th it's not a month yet I mean we're still 10 days out from a month since 4844 went live but it's been 20 days and we already have a lot of really cool insight into the blob Market into how l2s are using blobs as well as other participants on the network here so zerox Rob tweeted out uh that total spend on blob blob fees as of April 2nd

was $1.9 million and it would have cost the same uh sorry it would have cost to post the same data as cor data uh at $50 million so essentially instead of paying $50 million l2s uh plus I guess inscriptions have paid $1.9 million so the blobs have currently given us a 80 to 90% discount and a fee Market that is not as correlated to market trends as the regular EIP 1559 fee Market which you can see in this chart here which is exactly going back to what I was saying about having an orderly settlement layup or I guess like an orderly fee Market in blobs where essentially all of the blob players are incentivized not to have Feast spikes right essentially to keep it as smooth as possible and you can actually see that playing out right on this chart here you can see that cold

data spikes and has random spikes because it shares the same fee Market as everything else on L1 but then you have the blobs which has its own fee market and it's relatively stable there which has been just great to see that thesis playing out there and as I said it's only been you know a little while here hasn't even been a month yet but we're already seeing these uh these Trends play out and we're already seeing that that 80 to 90% reduction which is essentially what a lot of the estimates put it at so that's great to see uh so yeah that that's really really cool there and also uh there's a couple more things and a dent analytics dashboard that you should go go check out here from zerox Rob that tracks a bunch of these things here I'll link it YouTube description below but staying on the

topic of blobs here uh blobs are now ranked number four on the eth fee burn leaderboard over the last 7 days so I want to discuss a little bit of fud here for a second that has been been popular in the ecosystem for a little while now like have you guys ever come across the fud that uh that says leer 2os are Paras parasitic to ethereum right of course you have like this is a popular piece of fud that a lot of the ethereum detractors love to use because they say okay well you know if everyone moves to layer 2 ethereum who's using layer 1 ethereum which obviously is the stupidest thing to say if you're even a little bit informed in how ethereum works but just to give you a recap on why it's stupid just two main points first point is that layer 2os pay layer

one like they pay layer one for their security they paay to post their data whether that be as C data or blobs they pay uh you know to to settle uh their their um their kind of transactions on there they pay to to put their proofs on there they have their bridges on there right they have their escape hatches on there they have everything on there that's like they use l one thing eum and then two you still have all the normal usage of layer 1 ethereum and and you know even if the layer one fees get so expensive that regular users can't afford it there's still going to be people paying for it because that's the whole thing right like if if let's say that guay is constantly at like 200 and it prices out pretty much like every regular users even the whales don't want

to spend that fee anymore well someone's spending that fee right like and it's probably the institutions at that point that that are using it and the l2s that are not uh you know nearly as fee sensitive as individuals are cuz the l2s are basically institutions themselves or businesses themselves right so that's like the piece of fud that's just been completely proven wrong like even in the last 20 days of blobs being live here as you can see where uh we've already burned 672 eth in the last 7 days from blobs which accounts for which makes it number four on the burn leaderboard behind only Unis swap eth transfers and tether now to catch Unis swap is quite a while away unop did like 5x as many uh you know as much of a fee burn here but that's only natural right so but the

fact that it is in the top five already and then if you count scroll here because scroll isn't using blobs right now so if you count scroll with just blob fees that brings it over a th000 I think that gives it more than tether that it's burned which means it would be number three on this leaderboard if you count like the the L2 usage of um of of kind of uh the feed burn here but in saying that I do want to clarify this by saying that the blobs are not only being used by l2s right they're not only being used by robs it's also being used by descriptions and there's a perfect dashboard that you can go look at here from hobby that shows you this so you can see here on this chart you know the blobs posted after the last 5 days what

does that look like well inscriptions are in purple so you can see that roughly I it's not not half but like a you know a healthy chunk is inscriptions here but then you scroll down a little bit and you can actually see this pie chart here of blob submitters over the last over the last 4 hours and you can see that inscriptions only accounts for 36% the rest of it is is l2s basically so you've got L here you've got bass optimism and you know and others arbitrum so on and so forth right so even if you were to take away the inscriptions I guess like fees from uh from this kind of uh chart that I have here from this table that I have here you blob fees would still be I think number seven or something like that instead instead of number four so it

would still be in the top 10 of of fee burners here and this is only 20 days after blobs went live guys this is this is uh you know before a lot of these l2s have even kind of scaled up their execution usage I know bass has scaled it up already but arbitrum is going to be doing that I'll talk about that in a sec you know arbitrum up upgrades there but so are the other l2s and there's going to be more l2s coming online soon and the demand for blobs is just going to keep going up so obviously l2s are not parasitic to eth in the slightest because of the fact that they are directly driving value back to eth Via the fee bur but like as I discussed the other day when I talked about this this subject they also use eth as money you

know even if they use their own native token as the fee token and I'm not talking about that you know people use eth as money on these networks it increases the eth network effect it increases the eth economy the ethereum economy here and increases the network effect of all of that so it's just insane to me that people say that L2 is a parasitic to ethereum when the I guess like facts are completely different to that the facts show you that they're not they're completely additive to eth's value and will continue to be and blobs you know 20 days in are already number four on the burn leaderboard here we'll see how that looks like in you know you guys know I like my long-term trends let's revisit this in like 6 months and see where that's at I am very confident that blobs is still going to be you know

top five maybe top 10 depends on like what happens on layer one obviously layer one can be quite volatile here but it's great to see that once again the haters are wrong the fers are wrong the people who actually pay attention to the facts pay attention to the evidence are right um and that's you know what I like to do you guys know I always try to stick to the facts and circumstances here and it's great to see that becoming reality because you guys know my favorite thing to say narrative is a narrative reality is reality and when the reality hits it's undeniable at that point so yeah anyway you can go check out all of those things that I just talked about with regards to blobs I'll link them in the YouTube description below for you to do so all right so I mentioned that I wanted to quickly uh

talk about arbitrum so you know guys know that arbitrum has this new stylus upgrade that they're bringing to the entire arbitrum ecosystem in particular arbitrum 1 here where essentially you can build smart contracts in uh programming languages other than solidity so they've highlighted rust here uh there's going to be more compute per gas which means means more scalability uh and then there is going to be full evm inoperability as well for this so compil down to the evm from you know from Russ for example here which is great so the reason why this has been brought up today is because there is an AIP or an arbitrum improvement proposal to activate stylus and enable the next gen web assembly smart contracts as part of the arbitrum ecosystem here so there are a lot of details in this post I'll uh link it in the YouTube description

below but this is going to be a huge unlock for the arbitrum ecosystem it's going to be a big scalability upgrade it's going to be a big upgrade in terms of increasing the amount of developers that can use arbitrum or I guess like can build on top of arbitrum and it's going to be a big unlock for users because users are going to get cheaper fees at the end of the day uh which is obviously the north star of all of these l2s out there but also the reason I'm so excited about it is not necessarily because of the cheaper fees because that to me is table Stakes at this point but it's the more experimentation right it's experimenting with things other than solidity it's experimenting with uh different ways of metering gas and kind of getting scalability out of that right that's what I love about these things

there but you know in terms of gas fees on on arbitrum and others right now I should actually bring this up here gas fees. you can see that they're still very very cheap I mean all the l2s with blobs for a Unis swap trade they're pretty much like between 5 and 10 cents uh you can see here that arbitrum is around 5 cents right now uh Bas is around three cents almost 4 cents but Bas obviously increased their scalability recently there zor 4 cents op main Net 10 cents so on and so forth um and then you can see what it would be like without blob so for scroll it's a122 so Scrolls fees are a lot more than than the others here because they're not using blobs right now but obviously when they start using blobs we'll see that those those costs come down there um but

also at the same time I think that there's going to be kind of it's going to be a little bit of a weirdness right where essentially the fees because they're not really influenced by the data cost because we have blobs they're going to be heavily influenced by the compute cost the execution cost and because of that it will be there'll be periods of time like we've saw saw recently where the some of these l2s will Spike really high in fees like for example base fees were spiking up to more than a dollar right um and then they were able to increase the capacity there and they're able to increase the um the uh their gas limit there and they've brought fees down again but if we're talking about like that that was just the spikes of fees if we're talking about like the median fees then I think

Bas was at maybe like 30 cents and they brought it back down to you know 3 to 5 cents or something like that depending on what you're doing this is for a unop trade here um but then the other l2s uh basically separate instances again so they've going to they're going to um scale their compute and their execution in their own ways and then we have more l2s coming online soon that uh you know they're not using uh blobs yet but maybe they will in the future um and that's the thing like people are going to compare those to the rollups that are using blobs right so for example Eclipse which is the svm L2 that's using Celestia for data availability so it's not going to be using blobs initially maybe they do in the future but they're not going to be using blobs from the

get-go which means that their theoretically their fees would actually be cheaper here because of the fact that using offchain da obviously they're taking a um a a kind of like security trade-off here uh but I believe they're targeting like a 1-cent fee and they're trying to keep it at 1 cent but of course eclipse is svm right it's not evm whereas basically all of these networks are evm right now the ones on this list uh in front of me here so it's going to be interesting to see what uh what that all kind of looks like there and how people compare those there but yeah you can go check out this AIP from arbitrum I'll link it in the YouTube description below for you to do so all right last up here is a question from the daily way Discord Community here that I wanted to

answer because I didn't really answer this today because I woke up to it and I kind of just gave like a nothing reply to narad here and I I felt really bad about it so I was like you know what I'm not going to like type up a whole paragraph about this I'm just going to answer it on the uh on on the refuel here for for for narad so yeah I hope I hope this answers your question here but basically they asked uh and they said here regarding the issuance curve bur could there ever be a point in which the burn is so high that the supply of e could theoretically speaking go to zero if someone could snippet reference the code or the path in the repo to the relevant code I'd appreciate it also if that is the case shouldn't there be a

value weight associated with the volume burned as Supply dwindles and value goes up less is burned so the thing is about this question is that it's quite Broad and it it's based on like a lot lot of assumptions and what I mean by this is that if you look at the total e Supply today right it's like 120 million or something something like that and let's say in theory we could get that down to zero like first of all do you understand what the price of eth would be in that world uh the price of eth would be astronomical secondly it wouldn't even work in practice to begin with because to stake eth to become a validator you need a minimum of 32 e right and the beacon chain needs a minimum of 510 512,000 E I

think from memory in order to actually even exist in the first place I think that if it dips below that the uh um the beacan chain actually isn't online anymore which means ethereum goes offline essentially I believe that's the case um that was at least the case to start the beacon chain back when it first got started there I don't know if that's still the case today but obviously there's still going to be you know a portion portion that a stake there and obviously you can't use lsts or lrts to pay fees it's always raw eth so you know in theory it I mean it can't even happen because it means that the network would be offline before it even happened because there would be no validators left even if you say that only one validator needs to be online well there would be no validator online

if the E Supply is zero because there's no 32 e there right so when you look at it from that perspective even in theory it can't go to zero like and then you look at it in practice and say okay well how low can it go maybe not to literally zero but can it get to a point where essentially like there isn't enough eth to go around no one can get their hands on eth they can't use eth for anything so on and so forth and I mean in theory you know that could happen but in practice it's like extremely impractical and extremely implausible for a bunch of different reasons and the first first reason is because as I said the price of eth would be so high in this world which means that because the um gas fees are metered in in gay and not in the USD

price essentially what happens is that uh you know maybe the the guay price is like 100 gay but in USD price that would be a lot more if eth is like a million vers versus eth being like $33,000 right so there's going to be like a sealing to how much people are willing to pay on the network and there's always going to be a balancing act between those things just as part of the natural fee Market here but I think the the the stronger Point here is that like the ethereum network issues eth every 12 seconds as part of consensus layer rewards so it already and I mean okay okay it issues that eth as part of the consensus layer rewards but in saying that the eth is that new eth is only available once the eth is is kind of like swept out of a

validator here and that happens uh periodically I mean I mean it happens on a rolling basis and I think it's like every few minutes or something like that so I think it's like every Epoch so like six minutes or something so in world like there is still eth being issued but in that world like imagine the craziness that would happen around that right like imagine eth is like a million dollars or like $2 million eth because of the fact that we have barely any eth and there's so much demand for it because so many people want to use the network and then essentially what happens is that every new eth that is minted is just so much money worth and you can't stake more eth because there's no eth left to stake and that means that the existing stakers are getting so much you know for their money

what happens to lsts and lrts in that world like when you actually kind of think about it and think about what it could actually look like um I I really do do think we'll never get to that world because in the world that that you know if that world did exist it would actually break a lot of our assumptions um but I think that naturally we just won't ever get there because of the fact that we expect as the eth price uh sorry as more eth is burn the E eth price trends up over time because it's just a scarcity Factor right it's a supply and demand Factor where essentially that um you know people will say oh well you know you can't rely on scarcity if there's no demand like if I say I've got one of these you know I painted this cool picture there's one of them in the

world that makes it super rare I'm going to charge a million dollars for it well that's not how it works because it's only worth a million dollars if someone pays me a million dollars for it right but with eth and with the fee burn is that we're only burning fees because someone is you know has eth to burn essentially and someone's using that eth now if no one has eth left and they have to go keep buying it from the Open Market in order to use it as fees well there's your demand driver right so from that world like the demand would essentially collapse if they if people don't want to buy the um the eth for that amount of money because it's not worth it to use the ethon network to do some kind of like transaction that brings marginal value to them so this

question as I said like it is really deep on you know it might might be simple on the surface in that you look at it and you're like okay that can't happen because it sounds silly but you know in theory it can happen to an extent where we just burn some I mean we can't go to zero as I said we can't go to zero e but like we could burn so much eighth that essentially uh it becomes you know East price just goes so astronomical that we have a balancing act essentially where where it takes less eth to to do transactions on the network because let's say the network only wants to pay at most $1,000 per transaction or something like that I know that sounds crazy but let's say they the network only wants to pay $1,000 per transaction that is like the

Max and anything over that people are not willing to pay for well then if eth is a million dollars you know you need like 0.00001 eth I think or something like that if I'm doing Ma my math correctly there as opposed to needing 0.3 eth today and of course eth is divisible up to 18 decimal places as well you've got that working in favor of o o o of eth there so yeah I guess like the tldr here is that in theory we could burn so much eth that essentially it doesn't go to zero but it goes to such a low value that uh you know becomes like a potential issue for the network based on everything that I just mentioned and other unforeseen circumstances but in practice I don't expect that to ever be the case I expect the eth price to continue trending up because of that

because you know all else being equal if there's more demand than Supply then the price should go up over time and I'm talking about like longer term here I'm not talking about shortterm of course because short-term anything can happen but that's how I kind of view it there but yeah the real Point here I think that many people don't mention is that eth is actually inflationary by default it's only deflationary when we have more burn than issuance but eth is always issuing oh sorry ethereum is always issuing new eth in the form of consensus layer rewards to stakers right uh and on top of that as well stakers also get a share of meev rewards and um the tips of fees as well so not all of the fees are burned so if you know they're getting 20% tips there those are worth you know

an astronomical amount to it in that in in this theoretical World here um but yeah hopefully that answers your question nard uh again apologies for like being blunt about it on the Discord Channel but you know I woke up I hadn't had my coffee yet and I'm like oh my God I had this question is just yeah like and that's why I think I I originally replied to you saying don't think so just because I was like running it through my head and I'm like nah that doesn't make sense just on the surface to me uh and then and now I'm explaining my rationale of how I kind of arrived at that conclusion there but yeah as I said hopefully that answers your question there uh and guys if you guys have questions that you'd rather me answer on the um on the refuel rather than the

Discord channel uh please you know maybe DM me them or something like that because I am much better at answering things U when I'm talking about them than when I'm writing about it um and I can just fit it into the refu and then I can just educate so many more people about it you know the 5,000 or so people that listen and watch the refuel every day uh because I know a lot of people aren't in the daily grade Discord Channel and they probably miss it and things like that so if you have questions like this that you think are relevant to the wider Community please uh you know ask get maybe in DM so it doesn't get lost in the in the in the channel there and I'm always down to answer those there but on that note that's going to be it for today so thank

you everyone for listening and watching be sure to subscribe to the channel if you haven't yet give it a thumbs up subscribe to newsletter join the Discord Channel and I'll catch you all tomorrow thanks everyone