$ETH
Ethereum has proudly embraced its deflationary model - burning more Ethereum in gas fees than it issues. On paper, it looks positive: fewer coins, higher value.
But there's a problem.
While headlines highlight "deflation", they often overlook staking rewards, with new Ethereum still entering circulation. This means that supply isn't shrinking as quickly as it appears.
What’s the concern then?
1. Transparency - Ignoring staking emissions can mislead investors and harm trust. A strong ecosystem needs honest data.
2. Economic pressure - The deflationary token can become too scarce, making people hesitant to spend or circulate Ethereum in real use cases.
3. Validator incentives - If rewards shrink too much or inflation becomes a taboo subject, staking may lose its appeal - weakening network security over time.
Ethereum’s vision has never been just "digital gold". It is meant to be usable and programmable money. Deflation alone does not build an economy - utility does.
So yes, deflation looks good - but when it ignores the reality of staking, it may do more harm than good.
Long-term strength comes from balance - not just from burning.
