As Ethereum transitions to a Proof-of-Stake (PoS) transaction authentication mechanism, its daily issuance will drop drastically from around 13,000 ETH to only around 2,000 ETH. Ultimately, as staking activity picks up, the issue is expected to stabilize at around 5,000 ETH per day.
Ethereum's intrinsic supply burning mechanism is an important factor in generating high returns. Here, the base fee, which is determined in real-time using network congestion as its primary input, is burned while the validator award consists mostly of two variables: the tip fee, which is the fee incurred by the user for prioritizing the processing of a particular transaction, and the block subsidy, which is currently set at 2 ETH per block and is divided equally among all validators. The infographic below details all the factors needed to ensure high returns on Ethereum.