Ether Lost Due to Bugs and User Errors May Have Increased 44% Since March 2023, Report Suggests

Key Points

1. Ether lost to bugs and user errors has risen from 636,000 ETH in March 2023 to over 913,000 ETH, a 44% increase.

2. Notable incidents contributing to lost ETH include the Parity Multisig bug (306,000 ETH), Quadriga’s faulty contract (60,000 ETH), and the Akutars NFT minting error (11,500 ETH).

3. EIP-1559, implemented in August 2021, has burned approximately 5.3 million ETH, significantly affecting Ethereum’s net supply.

4. The Merge in September 2022 reduced new ETH issuance by about 90%, transitioning Ethereum to proof-of-stake and further constraining supply.

5. Lost ETH and deflationary mechanisms like EIP-1559 create a complex supply landscape, reducing circulating supply but also posing challenges for the ecosystem.