Explore Ethereum supply dynamics including ETH issuance under Proof of Stake, EIP-1559 transaction burns, and staking effects. Learn how these mechanisms influence circulating supply, deflationary periods, and market value, while impacting DeFi, NFTs, and Layer 2 adoption. Understand Ethereum’s flexible, adaptive supply model for investors, developers, and crypto enthusiasts seeking long-term growth and scarcity opportunities.
Here’s a question that trips up a surprising number of crypto investors: How much ETH will ever exist?
With Bitcoin, the answer is clean and simple — 21 million, hard cap, full stop. Ethereum? It’s a completely different story. And honestly, it’s a more interesting one.
Ethereum doesn’t have a maximum supply in the traditional sense. But that doesn’t mean it’s just printing tokens into infinity. Thanks to the EIP-1559 burn mechanism and the shift to Proof of Stake, Ethereum has developed one of the most sophisticated monetary systems in crypto — one where the supply can actually shrink during periods of high activity.
In this guide, we’ll break down exactly how Ethereum’s supply works in 2026, what’s changed since The Merge, and why understanding these mechanics matters whether you’re an investor, developer, or just trying to make sense of your ETH holdings.
Table of Contents
- What Is Ethereum (ETH)?
- Ethereum vs Bitcoin: Supply Differences That Actually Matter
- ETH Issuance: How Proof of Stake Controls New Supply
- EIP-1559 and the ETH Burn Mechanism Explained
- Is Ethereum Deflationary or Inflationary in 2026?
- Current Ethereum Supply: What the Numbers Say
- Historical ETH Issuance and Burn Rates
- Key Factors Affecting Ethereum’s Total Supply
- How ETH Supply Dynamics Impact Price
- The Future of Ethereum Supply: 2026 and Beyond
- Frequently Asked Questions
- Final Summary
What Is Ethereum (ETH)?
Ethereum is a decentralized, open-source blockchain platform that lets developers build smart contracts, decentralized applications (dApps), and financial protocols — without relying on any central authority. Proposed by Vitalik Buterin in 2013 and launched in 2015, it was designed from the start to be more than just a digital currency.
Where Bitcoin focuses primarily on being a store of value, Ethereum is programmable money. It’s the infrastructure layer that DeFi, NFTs, DAOs, and the broader Web3 ecosystem are built on.
Key Features of Ethereum in 2026
Ether (ETH) — The Native Token ETH is used to pay gas fees for every transaction and interaction on the network. It also serves as collateral in DeFi, a store of value, and the staking asset that secures the entire network.
Smart Contracts Self-executing programs that run automatically when predefined conditions are met — no middlemen needed. Smart contracts are the foundation of every DeFi protocol, NFT collection, and DAO on Ethereum.
Decentralized Applications (dApps) Applications built on Ethereum that operate transparently and permissionlessly. From Uniswap (trading) to OpenSea (NFTs) to Aave (lending), the dApp ecosystem has grown into a multi-billion-dollar economy.
Proof of Stake (PoS) Since The Merge in September 2022, Ethereum has run on Proof of Stake. Validators lock up 32 ETH to participate in block validation, earning rewards in return — while using over 99% less energy than the old mining system.
Layer 2 Scalability Networks like Arbitrum, Optimism, Base, and zkSync process transactions off the main chain, dramatically lowering fees and increasing throughput. By 2026, the majority of Ethereum user activity happens on Layer 2.
Why Ethereum’s Supply Model Matters
Every one of these features — staking, gas fees, DeFi activity, Layer 2 adoption — has a direct effect on how much ETH exists at any given moment. Unlike Bitcoin, where supply is entirely predetermined, Ethereum’s supply is alive. It responds to how the network is used. That’s what makes understanding it so important.
Ethereum vs Bitcoin: Supply Differences That Actually Matter
Most people know that Bitcoin has a hard cap of 21 million coins. But the comparison between Bitcoin and Ethereum’s supply goes much deeper than one having a limit and the other not.
1. Maximum Supply
Bitcoin: Hard cap of 21 million BTC. Mathematically guaranteed by the protocol. This is the bedrock of Bitcoin’s “digital gold” narrative — predictable scarcity that nothing can override.
Ethereum: No fixed maximum supply. ETH issuance is technically unbounded, but EIP-1559 burning and Proof of Stake have transformed the practical reality. In high-activity periods, Ethereum’s supply actually decreases.
2. Issuance Rate
Bitcoin: Block rewards halve roughly every four years (the “halving”). This predictably reduces new BTC entering circulation on a fixed schedule, regardless of what’s happening on the network.
Ethereum: Issuance dropped dramatically after The Merge. Current annual ETH issuance sits at roughly 0.5–1% of total supply — far lower than in the Proof of Work era, and offset by ongoing burns.
3. Transaction Fee Mechanisms
Bitcoin: Transaction fees go directly to miners. No BTC is ever destroyed through fee payments.
Ethereum: EIP-1559 burns the base fee on every transaction. Fees don’t just go to validators — they permanently remove ETH from circulation. The busier the network, the more ETH disappears.
4. Design Philosophy
Bitcoin: Intentionally simple and conservative. Predictable supply, limited programmability, optimized for being a reliable store of value.
Ethereum: Flexible and programmable. Supply adjusts based on network needs. Issuance funds security; burning manages inflation; staking removes liquid supply. All three mechanisms work together.
5. Inflation vs Deflation
Bitcoin: On a known deflationary path toward its cap. The supply trajectory is fully predictable decades in advance.
Ethereum: Genuinely either inflationary or deflationary depending on the day. During quiet network periods, slight inflation. During DeFi booms or high-activity events, net deflation.
| Feature | Ethereum (ETH) | Bitcoin (BTC) |
|---|---|---|
| Maximum Supply | No hard cap | 21 million BTC |
| Issuance Rate | ~0.5–1% annually (PoS) | Halves every ~4 years |
| Fee Mechanism | Base fee burned (EIP-1559) | Fees paid to miners |
| Supply Direction | Inflationary or deflationary | Predictably deflationary |
| Primary Design | Programmable blockchain | Store of value |
| Current Phase | Dynamic supply management | Approaching scarcity ceiling |
Neither model is inherently superior — they serve different purposes. But Ethereum’s adaptive approach is arguably more sophisticated and better suited to a network that needs to balance growth, security, and economics simultaneously.
ETH Issuance: How Proof of Stake Controls New Supply
The way new ETH enters circulation changed completely when Ethereum switched from Proof of Work to Proof of Stake in September 2022. Understanding the new issuance model is essential for grasping why Ethereum’s supply behaves the way it does.
What Changed with The Merge
Before The Merge, Ethereum worked like Bitcoin in one key way: miners competed to solve computational puzzles and earned ETH as a block reward. This was energy-intensive and generated substantial new ETH — roughly 13,000 ETH per day under PoW.
After The Merge, miners were replaced by validators. New ETH issuance dropped by approximately 90% overnight.
How Proof of Stake Issuance Works
Validators must lock up a minimum of 32 ETH as a security deposit (their “stake”) to participate in block validation. In return, they earn ETH rewards for proposing new blocks and attesting to others’ proposals.
The total amount of new ETH issued depends on how many validators are active:
- More validators → rewards spread across more participants → lower yield per validator
- Fewer validators → higher per-validator rewards → higher incentive to stake
- This self-regulating mechanism keeps the system balanced without requiring external adjustments
Current annual ETH issuance is approximately 0.5–1% of total supply — and that’s before accounting for burns.
Slashing: The Supply-Reducing Safety Valve
Validators who act dishonestly — attempting double-signing, going offline repeatedly, or trying to attack the network — face slashing penalties. Their staked ETH is partially or fully destroyed. While slashing events are relatively rare, they represent another mechanism that can reduce circulating supply.
Key Staking Numbers in 2026
- Minimum stake per validator: 32 ETH
- Total ETH staked: over 28 million ETH (as of 2026)
- Average annual validator reward: approximately 3–5% (gross, before accounting for burns)
- ETH staked represents roughly 23%+ of total circulating supply
That 23% is crucial. It means nearly a quarter of all ETH isn’t freely trading on exchanges — it’s locked up, securing the network, and off the liquid market.
EIP-1559 and the ETH Burn Mechanism Explained
If the shift to Proof of Stake was the first major transformation of Ethereum’s supply, EIP-1559 was the second. Implemented in August 2021 as part of the London Upgrade, it changed the fundamental economics of every transaction on Ethereum.
What EIP-1559 Actually Changed
Before EIP-1559, transaction fees worked through a simple auction: you set a gas price, miners chose the highest-paying transactions to include, and all fees went directly to miners. This made fees unpredictable and volatile.
EIP-1559 replaced this with a two-part fee structure:
Base Fee: A dynamically adjusted fee that reflects current network demand. This fee is completely burned — it is permanently destroyed and removed from circulation. Not sent to a wallet. Not given to validators. Gone.
Priority Fee (Tip): An optional extra payment users can add to incentivize validators to prioritize their transaction. This goes to the validator as a reward.
How the Burn Actually Works
Every time anyone does anything on Ethereum — swap tokens, mint an NFT, interact with a smart contract, send ETH — the base fee is burned. The busier the network, the higher the base fee, and the more ETH gets destroyed per unit of time.
During the NFT booms of 2021 and 2022, and the DeFi surges of 2023–2024, burn rates exceeded 5,000 ETH per day on peak days. That’s enough to more than offset all new issuance from validators.
Why This Matters for Supply
The burn creates a direct link between network usage and supply reduction. When Ethereum is popular and heavily used:
- Base fees rise
- More ETH is burned per transaction
- If burns exceed new issuance, net supply decreases
When the network is quiet:
- Base fees fall
- Less ETH is burned
- Net supply grows slightly
This is a fundamentally different model from any previous cryptocurrency. Supply isn’t predetermined by code — it responds to economic reality.
Benefits Beyond Supply Management
EIP-1559 also solved real user experience problems:
- More predictable fees: The base fee adjusts gradually, so users can estimate costs more accurately
- Better UX for wallets: Wallets can now suggest appropriate fees with much higher confidence
- Value alignment: Burning fees ties ETH’s value directly to network usage — more adoption means more burns means potential scarcity
Cumulative Burn Statistics (as of 2026)
Since EIP-1559 launched in August 2021, the cumulative ETH burned has surpassed 4.5 million ETH — a substantial permanent reduction in what would otherwise be circulating supply. At current ETH prices, this represents billions of dollars in value removed from circulation.
Is Ethereum Deflationary or Inflationary in 2026?
This is the question investors most want answered — and the honest answer is: it depends on what the network is doing.
Ethereum’s supply direction isn’t fixed. It fluctuates based on a tug-of-war between two forces:
- Issuance (new ETH created as validator rewards) — pushing supply up
- Burns (ETH destroyed via EIP-1559 base fees) — pushing supply down
When Ethereum Is Inflationary
During periods of low network activity — when transaction volumes are thin, gas fees are low, and DeFi/NFT activity is subdued — burns fall below issuance. In these periods, Ethereum’s net supply grows slightly. At current issuance rates, this means roughly 0.3–0.6% annual inflation during quiet periods.
When Ethereum Is Deflationary
During periods of high network activity — peak DeFi seasons, major NFT launches, token airdrops, or bull market surges — base fees spike and burns can significantly exceed issuance. The result is net negative supply growth: more ETH is destroyed per day than is created. Ethereum has experienced multiple sustained deflationary periods since The Merge.
The “Ultra Sound Money” Thesis
The Ethereum community has coined the term “ultra sound money” to describe this dynamic. The idea: during periods when Ethereum is most useful and most in demand, its supply actually contracts. Scarcity and utility move in the same direction — the exact opposite of traditional fiat currency dynamics.
The Layer 2 Complication
One important nuance in 2026: the rapid growth of Layer 2 networks (Arbitrum, Optimism, Base, zkSync) moves transactions off Ethereum’s main chain. While this is great for scaling and user costs, it reduces on-chain activity and therefore base fee burns. This is one reason Ethereum has seen more inflationary tendencies in periods of heavy L2 migration. It’s a deliberate trade-off the community accepts — scaling over deflation.
| Condition | Supply Effect | Net Direction |
|---|---|---|
| High on-chain activity (DeFi boom, NFT surge) | Burns > Issuance | Deflationary |
| Low network activity | Issuance > Burns | Slightly inflationary |
| High L2 adoption | Fewer on-chain txns → lower burns | Slightly inflationary |
| More validators staking | More ETH locked, less liquid | Effectively tighter supply |
| Protocol upgrades increasing throughput | More txns possible → more burns | Deflationary potential |
Current Ethereum Supply: What the Numbers Say
As of 2026, here’s a snapshot of where Ethereum’s supply stands:
Total Circulating Supply
Approximately 120–122 million ETH is in circulation. This number moves slowly — the combination of modest issuance and ongoing burns keeps net supply changes minimal in most market conditions.
Staked ETH
Over 28 million ETH is currently staked by validators — approximately 23% of total supply. This ETH is actively participating in network security but is not freely tradable on exchanges. It represents a significant reduction in liquid supply, which is the number that actually matters for market dynamics.
Cumulative ETH Burned
Since EIP-1559 launched in August 2021, over 4.5 million ETH has been permanently destroyed. This supply will never return to circulation.
Monthly Burn Rate
Monthly ETH burn varies significantly with network activity — ranging from roughly 50,000 to 150,000+ ETH per month during active periods.
Supply Snapshot (2026 Estimates)
| Metric | Current Estimate |
|---|---|
| Total Circulating Supply | ~120–122 million ETH |
| ETH Staked (locked) | ~28 million ETH |
| Cumulative ETH Burned (since EIP-1559) | ~4.5 million+ ETH |
| Liquid (Unstaked) Supply | ~92–94 million ETH |
| Monthly ETH Burn | 50,000–150,000+ ETH (varies) |
| Annual Issuance Rate | ~0.5–1% of total supply |
The liquid supply figure — roughly 92–94 million ETH — is arguably more meaningful for investors than total circulating supply, since that’s what’s actually available for trading, collateral, and economic activity.
Historical ETH Issuance and Burn Rates
Ethereum’s supply history tells a clear story of deliberate evolution — from high-inflation PoW era to the lean, burn-offset model of today.
Phase 1: Launch and Early Growth (2015–2017)
Ethereum launched with a pre-mine of 72 million ETH allocated to early investors, developers, and the Ethereum Foundation. Annual issuance under PoW was high — approximately 18 million ETH per year — intended to rapidly bootstrap the validator (miner) community. No burn mechanism existed; all fees went to miners.
Phase 2: The Proof of Work Era (2017–2022)
Mining continued at roughly 2 ETH per block, plus transaction fees. Total supply reached approximately 114 million ETH by mid-2021. During the DeFi summer of 2020 and NFT boom of 2021, gas fees hit extraordinary levels — but no burning mechanism yet meant all those fees simply enriched miners.
Phase 3: EIP-1559 Changes the Game (August 2021)
The London Upgrade introduced base fee burning. Initial monthly burns ranged from 20,000 to 60,000 ETH, depending on activity. For the first time, ETH supply had a counterforce. During the NFT peak of late 2021, daily burns briefly exceeded daily issuance — a preview of what Ethereum’s economics could look like.
Phase 4: The Merge (September 2022)
The single most consequential event in Ethereum’s supply history. Daily issuance dropped from roughly 13,000 ETH under PoW to approximately 1,700 ETH under PoS — a reduction of about 87%. Combined with EIP-1559 burns already in effect, Ethereum entered periods of genuinely negative net supply growth for the first time.
Phase 5: Post-Merge Maturation (2023–2026)
Supply growth has been minimal and oscillating — sometimes slightly positive, sometimes slightly negative. Key developments:
- Staked ETH crossed 20 million in 2023, then 28 million by 2026
- Cumulative burns exceeded 4.5 million ETH
- Layer 2 growth moderated on-chain burn rates
- ETH supply is now among the most stable (in percentage terms) of any major cryptocurrency
Key Factors Affecting Ethereum’s Total Supply
Ethereum’s supply isn’t set by an algorithm on a fixed schedule — it emerges from the interaction of multiple live forces. Here’s what actually drives it:
1. On-Chain Network Activity
More transactions → higher base fees → more ETH burned. DeFi trading, NFT mints, token launches, and smart contract interactions all contribute to burn rates. This is the most direct and most variable factor.
2. Proof of Stake Staking Levels
Every ETH staked is temporarily removed from liquid circulation. As staking participation grows, liquid supply tightens even if nominal circulating supply stays the same. With over 28 million ETH staked in 2026, this effect is substantial.
3. Layer 2 Adoption
L2 networks process transactions more cheaply off the main chain, which is excellent for users — but it reduces on-chain activity and therefore base fee burns. The faster L2 adoption grows, the more it moderates Ethereum’s deflationary tendencies. This is a known and accepted trade-off.
4. Protocol Upgrades
Ethereum’s governance process (Ethereum Improvement Proposals, or EIPs) can adjust issuance rates, burn mechanisms, and validator rewards. Past upgrades have meaningfully changed supply dynamics, and future ones may too. Investors tracking ETH supply should follow EIP discussions.
5. Market Demand and Macro Conditions
High ETH demand drives more on-chain activity, indirectly increasing burns. Bull markets tend to correlate with deflationary ETH supply; bear markets with slightly inflationary supply. This feedback loop is one of Ethereum’s most interesting economic properties.
6. Blob Transactions and Proto-Danksharding (EIP-4844)
Introduced in the Dencun upgrade in early 2024, blob transactions allow L2 networks to post data to Ethereum more cheaply. While this has improved L2 economics dramatically, it also means less fee-burning per L2 data transaction. A relevant ongoing factor in 2026’s supply dynamics.
How ETH Supply Dynamics Impact Price
Supply mechanics don’t exist in a vacuum — they have real effects on market behavior, investor psychology, and price action.
Scarcity and Price Appreciation
When burn rates exceed issuance, total circulating ETH decreases. Basic economics: holding demand constant, a shrinking supply supports higher prices. During sustained deflationary periods — like portions of 2022 and 2023 — this dynamic played a visible role in ETH’s relative price performance.
Staking Creates Structural Buy Pressure
Over 28 million ETH staked means that a large pool of ETH holders have made a deliberate, medium-term commitment to hold. Stakers don’t sell during short-term volatility (unstaking has delays). This structurally reduces sell pressure and smooths market dynamics.
Liquid Supply Is What Markets Actually React To
Total circulating supply of 120–122 million ETH is somewhat misleading. The liquid supply — what’s available to trade, borrow, and use — is closer to 92–94 million ETH after accounting for staked tokens. This tighter float amplifies price moves in both directions.
The Feedback Loop
Here’s the interesting self-reinforcing dynamic: high ETH prices attract more on-chain activity (DeFi, launches, speculation) → more transactions → more ETH burned → tighter supply → supports prices further. During bull markets, this cycle can be powerful.
Market Psychology and the “Ultra Sound Money” Narrative
Ethereum’s community has been vocal about the deflationary supply thesis. Burn trackers and real-time supply dashboards attract significant attention. The narrative that ETH is “burning” creates a perception of scarcity — which, regardless of whether burns are currently exceeding issuance, influences investor sentiment.
What Investors Actually Watch
Sophisticated ETH investors track three numbers more than any others:
- Net issuance rate (issuance minus burns, as a percentage of supply)
- Staking participation rate (% of supply staked)
- On-chain activity trends (as a leading indicator of future burn rates)
The Future of Ethereum Supply: 2026 and Beyond
The trajectory of Ethereum’s supply over the next several years will be shaped by a combination of technical upgrades, adoption trends, and market forces.
Increasing Staking Participation
As staking becomes easier through liquid staking protocols (Lido, Rocket Pool, and native solo staking), more ETH is expected to flow into validators. This structurally tightens liquid supply over time, regardless of issuance and burn dynamics.
The Verge, The Purge, and Beyond
Ethereum’s development roadmap continues with a series of upgrades — informally called The Verge, The Purge, The Splurge — focused on making the network more efficient, easier to validate, and more scalable. These upgrades may adjust fee structures, increase throughput (and therefore burn potential), and optimize validator economics.
Full Danksharding
The full implementation of danksharding (the multi-dimensional data availability scaling solution) is expected to further reduce L2 transaction costs and increase Ethereum’s effective throughput dramatically. More activity enabled at lower cost per transaction — the net supply effect depends on whether volume growth outpaces per-transaction fee compression.
Tokenized Real-World Assets and Institutional Adoption
One of the most significant demand drivers for on-chain Ethereum activity in 2026 is the growth of tokenized real-world assets (RWAs) — treasury bonds, equities, real estate, and private credit on-chain. As institutional adoption scales, on-chain activity from settlement, compliance, and portfolio management could become a major sustained source of burn.
Potential Protocol-Level Issuance Adjustments
Ethereum’s governance process could reduce validator issuance further if staking participation grows and security needs are met at lower reward levels. Several EIP proposals have explored progressive issuance reduction as a long-term path to tighter supply.
Long-Term Supply Outlook
| Scenario | Supply Effect |
|---|---|
| High L2 + RWA adoption, lots of on-chain activity | Sustained deflationary periods |
| Moderate growth, balanced L1/L2 activity | Near-neutral supply, slight oscillation |
| Slow adoption, low activity | Mildly inflationary at current issuance |
| Major protocol upgrades increasing throughput | Increased burn potential |
The most likely 2026–2030 scenario is continued oscillation — periods of deflation during market and activity peaks, mild inflation during quieter periods — with a long-term trend toward tighter supply as both staking and on-chain adoption grow.
Frequently Asked Questions
Q: Does Ethereum have a maximum supply?
No. Ethereum has no hard cap on total supply like Bitcoin’s 21 million. However, the combination of EIP-1559 burns and Proof of Stake’s relatively low issuance rate means supply growth is minimal — and can be negative during high-activity periods.
Q: How much ETH is in circulation in 2026?
Approximately 120–122 million ETH in total circulating supply, with around 28 million ETH staked (locked) and ~92–94 million ETH in liquid circulation.
Q: What is EIP-1559 and why does it matter for supply?
EIP-1559 is a protocol change that permanently destroys (burns) the base fee portion of every Ethereum transaction. Since August 2021, this has removed over 4.5 million ETH from circulation — directly reducing supply as a function of network usage.
Q: How does Proof of Stake affect Ethereum’s supply?
PoS replaced energy-intensive mining with validator staking. New ETH issuance dropped ~87% at The Merge. Validators earn rewards for securing the network, but at a far lower rate than miners previously did — around 0.5–1% of total supply annually.
Q: Can Ethereum become deflationary permanently?
Sustained permanent deflation would require burns to consistently exceed issuance indefinitely. This is possible during periods of very high on-chain activity, but structural growth in L2 adoption makes it more likely that Ethereum oscillates around a near-neutral supply rather than staying permanently deflationary.
Q: How does Layer 2 growth affect ETH supply?
Layer 2 networks reduce on-chain transactions, which lowers base fee burns. This makes Ethereum’s supply slightly more inflationary during heavy L2 usage periods. It’s a deliberate trade-off — Ethereum prioritizes scaling over consistent deflation.
Q: What is “ultra sound money” in the context of Ethereum?
“Ultra sound money” is a community term (a play on Bitcoin’s “sound money” narrative) describing the thesis that Ethereum’s combination of PoS issuance and fee burning creates an asset that becomes scarcer during periods of highest utility and demand — unlike traditional currencies that inflate regardless of usage.
Q: What factors should ETH investors monitor for supply insights?
The most useful metrics are: net daily issuance (issuance minus burns), total staked ETH percentage, on-chain transaction volumes, and Layer 2 vs Layer 1 activity split. Sites like ultrasound.money and Etherscan provide real-time tracking.
Final Summary
Ethereum’s supply model is one of the most sophisticated in all of crypto — and in 2026, it’s more refined than ever.
Unlike Bitcoin’s simple hard cap, Ethereum uses a dynamic three-way system: validator issuance creates new ETH, EIP-1559 burns destroy ETH with every transaction, and staking locks ETH out of liquid circulation. The net result can be inflationary or deflationary depending on how actively the network is being used.
Here’s what to remember:
- No hard cap — but Ethereum’s supply is tightly managed through burns and staking, not open-ended inflation
- ~120–122 million ETH in circulation, with ~28 million staked and ~4.5 million+ permanently burned since 2021
- Issuance dropped ~87% at The Merge — Ethereum’s annual inflation rate is now just 0.5–1%, before burns
- EIP-1559 creates supply pressure — high network usage means more burns, potentially driving net deflation
- Layer 2 growth is a real factor — more L2 activity means less L1 burning, moderating deflationary tendencies
- Liquid supply (~92–94M ETH) is what markets actually respond to — much tighter than total circulating supply
- The long-term trajectory points toward tighter supply as staking participation grows and RWA/DeFi adoption expands
For investors, ETH’s supply model offers something Bitcoin doesn’t: a direct link between network adoption and scarcity. When Ethereum is being heavily used, its supply contracts. That’s a fundamentally different — and arguably more compelling — value proposition than a predetermined fixed cap.