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On Ethereum, the majority of transaction fees are burned. In effect, they are distributed to ETH holders in the same way that stock buybacks distribute corporat
by DennisP 5y ago
On Ethereum, the majority of transaction fees are burned. In effect, they are distributed to ETH holders in the same way that stock buybacks distribute corporate revenues.
- mrep 5y agoI disagree, crypto incentivizes to add more miners such that equipment + electricity = revenue so there is no profit. Stock buybacks effectively transfer income into the share price so that when you sell your stock it will be for a higher price and thus you will make a profit.
- DennisP 5y agoBut most of the fee revenue isn't going to the miners, it's being destroyed. And sometime in the first half of next year there won't be any miners; with the reduced issuance, the ETH supply will begin to shrink.