Ethereum Fans Meme the Merge With Pandas and Bats

Two memes, one silly and sweet, one serious and consequential. After the Merge, will ether become deflationary?

article-image

Ethereum Merge panda

share

key takeaways

  • The Merge Panda is on sale for 0.05 ETH, with the proceeds going to fund Ethereum core development
  • The rate of issuance post-Merge will depend on the amount of ether staked

Part mascot, part infographic, the Ethereum Merge panda bear is set to become the quasi-official Merge NFT, with its seven-day sale on NFT marketplace, Zora.

Unrelated, but of longer term significance, is the prognostications by supporters of “ultra sound money” — the memey notion that the Merge will make ether a deflationary asset. 

The Ultra Sound Money website allows prospective investors to simulate a variety of parameters that will determine whether staking issuance exceeds demand.

Panda fusion

Ethereum’s panda meme, inspired by the manga Dragon Ball Z “fusion dance” and made famous by influencers such as Anthony Sassano, shows two bears — one black and one white, symbolizing the consensus and execution layers of proof-of-stake Ethereum — merging into a panda.

Loading Tweet..

Half the funds from the 0.05 ETH ($85.60) mint will be used to fund Ethereum core development, with the other 50% shared between the meme’s creator, non-profit animal welfare organizations, Gitcoin Grants and Shonen Jump, a weekly shōnen manga anthology published in Japan, according to the sale description.

The original illustration is credited to Thai artist “CW.Cnatch,” who will receive 25% of the NFT proceeds.

Ethereum core development funds will be distributed through the Protocol Guild, a collective of protocol contributors, via an on-chain split administered by Stateful Works.

Source: Google

Even Google is in on the panda act; search queries for “Ethereum Merge” now display an estimated time and an image of the black and white bears — with ether symbols as belly-buttons — getting closer, in sync with the countdown.

Ultra Sound Money bat signal

Bitcoin’s narrative as digital gold is based in large part on its disinflationary design (not to be confused with deflationary). 

The assets’ so-called halvenings — memes in themselves — hard-coded into the protocol, reducing the BTC reward to proof-of-work miners by half every four years. The next such reduction is set for sometime around May 2024, and the process will, in theory, continue into the next century, as the asset approaches its finite supply of 21 million bitcoins.

Ethereum has never had a cap on the supply of ether, nor does the soon-to-be-retired proof-of-work chain undergo halvings. But, to Ethereans excited by the Merge, in about 60 hours it will undergo something similar, dubbed the “Triple Halvening.”

As miners cease to be relevant at the moment of the Merge, the ether issuance rate is expected to be reduced by roughly 90%, equivalent to three simultaneous ‘halvenings.’ 

Miners are typically forced to sell their rewards to pay for expenses like equipment and electricity. By contrast, ether issued to validators through staking rewards can potentially be reinvested into additional validators, and sold more strategically — or so goes the bull case. 

Demand drivers include staking demand, ether burned through usage and the ordinary need by dapps for blockspace.

Meme meets reality?

That global decline in ether issuance — thanks to the end of proof-of-work mining — coupled with these various sources of demand is what underpins the Ultra Sound Money meme.

No one knows whether demand will in fact outstrip supply, but we can model the variables and make an educated guess.

For instance, at the current stake rate, Ethereum becomes deflationary at a base fee rate of 15 gwei, according to Ultrasound.Money.

Source: ultrasound.money

That’s greater than the historical gas fees paid about half the time over the past seven days.

If demand for ether rises, the asset could become deflationary most, or even all of the time. On the other hand, as more ether is staked to secure the network, issuance could increase, raising the base fee rate required to maintain a deflationary posture.

What is sure, is that over five thousand Twitter users have added the bat signal meme to their profiles, an homage to the concept of Ultra Sound Money. And upwards of 425,000 validators have each staked 32 ETH to get a piece of the action.

As of press time, 118 panda NFTs have also been sold, netting $10,000 in ether.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Equities were mixed toward the end of Monday’s session while cryptocurrencies continued their rally

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend