Ultrasound money is an Ethereum meme focused on the drop in the ETH supply. Bitcoin investors define BTC as “sound money” because of its fixed and maximum supply. The Ethereum community, on the other hand, described ETH as “ultrasound money”, especially after EIP-1559 and The Merge.
What Does Ultrasound Money Mean?
Ultrasound Money is a popular meme for Ethereum supply. This meme, which came into use after a tweet by Justin Drake, refers to Ethereum’s blockchain composite synergies created from EIP1559 and Proof of Stake.
Used in Ethereum-based communities, this meme aims to reveal the differences between BTC and ETH with two different meanings:
- First, the EIP-1559 offering’s burn mechanism that allows the supply of Ether to become deflationary, meaning more ETH is destroyed from the vault.
- The latter refers to The Merge, which took place just a few days ago when Ethereum switched from PoW to PoS consensus mechanism.
if capped-supply BTC is sound money 📢
decreasing-supply ETH is ultrasound money 🦇 pic.twitter.com/anu6QiZRcO
— Justin Ðrake 🦇🔊 (@drakefjustin) January 22, 2021
The Merge helped facilitate Ethereum’s transition from Proof of Work to Proof of Stake consensus. This has had a significant impact on ETH’s security architecture, tokenomics and energy consumption.
While the Ethereum community strongly believes that ETH will turn into ultrasound money, or at least a deflationary asset, there are mixed opinions on this.
$ETH is now Ultra Sound Money pic.twitter.com/fKz6VmoWdR
— DavidHoffman.eth 🦇🔊 (@TrustlessState) September 15, 2022
Because BTC coin policies are predetermined and cannot be changed for any reason, many believe that ETH is not always superior to BTC. It also remains to be seen whether Ethereum will continue to change the operational mechanism that affects ETH price in the future.
Many argue that the deflation and usage warehouse also exists in BNB. BNB even has a fixed total supply and currently this total has reached the supply. With the same gas burning mechanism as ETH, the amount of BNB in the market can only steadily decrease.
Everything You Need to Know About Ultrasound Money
- The ETH supply decreases whenever ETH destroyed via fee burn exceeds ETH generated by issuance. Fee burn is an engine powered by Ethereum’s transactional utility.
- Base fees are the minimum fees specified by the protocol for including a transaction in an Ethereum block. Fees paid in addition to the base wages are not burned.
- The bat signal is a visual expression of the ultrasound money meme, which is a fun nod to bat ultrasounds. The ultrasound family uses the bat signal to propagate the meme.
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