In many of my previous posts about Ethereum, I’ve highlighted centralization as its core problem. Mr. Vitalik still believes in his ability to lead the project much like Mr. Musk, but he may have overlooked just how competitive this market has become.
My faith in decentralization of Ethereum was lost when they switched from PoW to PoS. If they have the ability to change underlying consensus algorithm, they can change anything in future too. Just my few satoshis.
Unfortunately, there is still a difficult balance between burns and network efficiency. Although the 0.51% annual increase doesn't represent significant inflation and fees are low, the price/blockchain activity isn't reacting well to this news.
I believe the transition to a POS has harmed the network.
An increase of 0.51% doesn't mean supply is increasing much but it also means that there is no reduction in huge amount of ethereums that are in circulation. There are 120 million etherum coins in circulation and this annual increase will kill one of core objectives of switching to PoS which is to reduce the number of Ethereum coins in circulation.