Can we run out of gas?
Arthur Haynes said this in his latest article about EIP 1559 potentially decreasing ETH’s supply. What do you think?
“If the amount of gas fees exponentially increases alongside usage, and these fees are burned, then very quickly the inflation schedule will become deflationary. The supply of Ether will decline in Ether terms as the platform becomes more useful. If we are underestimating the impact of DeFi on human economic interactions, there is a future where there isn’t enough Ether supply to allow the system to function.
The retort to that is that an extremely high price of ETH solves that supply issue. But it does not, there is no magic ETH in the ground that can be exploited if the marginal mining profits expand enough. The network will not produce enough ETH, via block rewards, to satisfy its use in the attainment of the Ethereum mission.
At this point, the network’s economics fails. The price is high, and HODLers are popping Ace of Spades, but it’s a short walk to the poor house if the DeFi apps that require fuel cannot obtain it at ANY COST. Given what we know about how the community responds to existential threats to accomplishing its mission (see: the DAO hack), do you expect them to sit by and watch the network kill itself due to a flawed inflation schedule? If you hard-forked once, you can hard-fork again. The deflationary issuance and gas burn schedule will be sacrificed so that Dapps can be used at the volumes necessary to power the decentralised computer.”