Ethereum Triple Halving: What is the Triple Halving and how will it affect ETH

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Ethereum Triple Halving
Credit: Pixabay

The Ethereum 2.0 transition has hyped several crypto enthusiasts to look forward to the much-awaited Ethereum merge event, but do you know about another critical ETH event called Ethereum Triple Halving?

Ethereum's roadmap is quite extensive when it comes to expanding the blockchain's core functionalities. The Ethereum Triple Halving, similarly named to the Bitcoin Halving, is set to see the Ethereum circulating supply slow down.

Let's take a look at what this new Ethereum Triple Halving, also known as the Triple Halvening, is all about.

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What is the Ethereum Triple Halving?

The Ethereum Triple Halving is the name given to a phenomena that will happen to Ethereum after it undergoes its merge update.

Once the merge is carried out successfully, the network shift from its earlier proof-of-work to proof-of-stake consensus.

As is the name, the Triple Halving consists of three elements: reduced issuance, burning, and staked ETH.

The major change from the current blockchain will see the amount of Ethereum issued through staking to mining drop. As noted by former blockchain engineer Montana Wong, the net annual ETH issuance will drop to 0.4% from 4.3%, roughly an issuance of 1500 ETH per day.

Second, comes the burning. Ethereum burning has been a major part of ETH since the EIP-1559 upgrade, and will continue to counteract some of the inflationary tendencies of ETH by burning some of the transaction fee.

And finally, is staking. Ethereum staking mechanics mean that stakers will not be able to withdraw any of their staked coins until at least six months after the merge, at which point a queue will allow for a gradual withdrawal. This effectively reduces the circulating supply temporarily, too.

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How will it affect ETH?

The Ethereum merge price is one of the key discussion points ahead of the update. Indeed, it has already impacted the price of ETH.

The prices of Ethereum are already rallying ahead of the merge update. At press time, ETH is up 18% in one week sitting at over $1900.

Speculation suggests that both the merge and the Triple Halving could see ETHs price increase, as the overall supply will see an increase in scarcity compared to the current rate. However, this remains pure speculation, and we'll need to wait until after the launch to see what happens.