Definition. This chart presents the annual rate of ETH supply change broken down into its components, expressing minting and burning as annualized percentages of circulating supply. It presents the following traces:

• 🟢 Annual Minting Rate: the annualized rate at which ETH supply is minted and issued by the protocol to miners and validators over time.

• 🔴 Annual Burning Rate: the annualized rate at which ETH supply is being burned by the EIP-1559 BASEFEE mechanism (plotted negative).

• 🔵 Annual Issuance Rate: the net annualized rate of change for ETH in circulation, calculated by subtracting the rate of Burned Supply from Minted Supply. This reflects the annualized rate of net change in the ETH supply.

Technical. Daily supply deltas are annualized and normalized by circulating supply:

• Annual Minting Rate = diff(Minted Supply, 1) x 365 / Circulating Supply 🟢
• Annual Burning Rate = -diff(Burned Supply, 1) x 365 / Circulating Supply 🔴
• Annual Issuance Rate = Minting Rate + Burning Rate 🔵

Interpretation. This decomposition shows the tug-of-war that determines whether ETH supply inflates or deflates: whenever the burn rate's magnitude exceeds the minting rate, the net issuance rate turns negative and circulating supply contracts. The minting leg shifted structurally at the Merge (September 2022), when Proof-of-Work rewards ceased and issuance dropped to the much lower Proof-of-Stake schedule, making net deflation achievable at moderate levels of blockspace demand. The burn leg is demand-driven and volatile, so the net rate oscillates with network activity.

Notes. Built from Minted Supply, Burned Supply and Circulating Supply. See also Proof-of-Stake Net Inflation Rate and Post-Merge Supply Dynamics.