🧗 Can you find the drop in ETH issuance per day?

New ETH is created and issued continuously as rewards to incentivize miners(validators) to secure the network.

Since validators use staked ETH to secure the network instead of mining, they no longer need to run expensive hardware. Hence, the rewards in PoS are lower than in PoW.

ETH issuance

Net ETH issuance = PoW Rewards (before merge) + Validator Rewards - ETH burnt

The validator rewards are stored in Beacon state. Since beacon state is not available in Dune analytics, we can approximate the daily PoS ETH issuance by computing the upper bound using the below formula:

Daily PoS issuance(upper bound) = 
  no_of_epocs_per_day *  
  ( effective_balance * base_factor * num_validators  / 
        sqrt(effective_balance * base_factor * num_validators))

where no_of_epocs_per_day = 225,
      effective_balance = 32ETH,
      base_factor = 64

🕵️ Can you find the drop in ETH issuance per day?

WITH block_rewards AS ( 
    ...
    --1. Add a condition (type=reward) to retrieve the paid rewards. 
    ...),
fees_burnt AS ( 
    ...
    --2. compute fees_burnt by multiplying gas_used and base_fee_per_gas. Divide by 1e18 to convert to ETH
    ...),
...
 eth_issuance_pos AS (
   ...
 )
SELECT 
    ev.day, 
    estimated_maxeth_issued_pos AS estimated_maxeth_issued_pos, 
    COALESCE(block_reward,0) AS block_reward,
    COALESCE(fees_burnt,0) as eth_burnt,
    --3. add block_reward, estimated_maxeth_issued_pos and subtract fees_burnt to compute estimated net issurance
FROM eth_issuance_pos ev 
LEFT JOIN fees_burnt fb 
    ON ev.day = fb.day 
LEFT join block_rewards br 
    ON ev.day = br.day
--4. Create a bar chart on the columns to visually observe the drop in ETH issuance

Click here to solve the quest.