Napkin math: why ETH is going to the moon post-merge to PoS

ETH issuance is going to drop from 2ETH per block to something like 0.15ETH per block. EIP1559 has also already burned 300,000ETH. Meanwhile, demand for ETH is going to increase massively because of fees being paid to validators instead of miners. Fundamentally, anyone validating transactions has to hold ETH, where under PoW, miners did not.

There are currently 237,863 Active Validators and average daily fees this week are $36,324,354. If the merge had already happened, there'd be $152 in daily fees paid per active validator.

I think that figure includes burned ETH that wouldn't be paid to validators, block times are slightly quicker on the Beacon Chain so fees might fall marginally, and L2 will have lowered congestion on L1, but nonetheless, $50-100 a day per validator, on top of the usual rewards, might be in the right ballpark.

Currently a validator costs $112,000; $100 a day is 32%APR. This will bring about huge demand for ETH being bought up specifically for locking in validators.