HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Ethereum Foundation Vitalik Buterin Talks ETH Inflation Rate

Altcoins 2020/11/20 04:00 by Nick Chong

Ethereum’s inflation rate has come under the microscope heavily over the past year as Bitcoin has undergone its halving. Many Bitcoin-focused investors in the space criticize the number of changes made to ETH issuance, including the dissolution of the ice age (which increases issuance) and the implementation of Proof of Stake over Proof of Work.

Vitalik Buterin, founder of the blockchain, recently highlighted his thoughts on issuance and the supply of the cryptocurrency in a recent Reddit thread. He did so in response to a question asked of him in an Ethereum Foundation “ask me anything”.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Vitalik Buterin Talks Ethereum Supply & Inflation

When asked about the maximum supply of ETH, Buterin responded by pointing out that Ethereum could actually be deflationary once the ETH2 upgrade is fully activated in a few years:

“The issuance schedule is ~4.7M per year for the next ~1-2 years or however long it takes until the merge, and then ~0-2M per year minus burned fees (which could be even greater than the issuance!) once PoS is fully in place. I don’t think it’s even productive to give any kind of different answer. That said, I do hope that the fact that the phase 0 code is finished and is basically just waiting for people to deposit has significantly de-risked the transition compared to eg. even six months ago!”

He added that the short-term concerns about Ethereum’s current economic rules are somewhat shortsighted as investors should look at where the network is going as opposed to where it is:

“In two years the main task will be to stabilize and cherish what we will have built. Until then, participation in Ethereum is unavoidably in part a prediction that the roadmap is a good one and that once this upgrading process ends we actually will get to a place where the network is efficient and stable and powerful and capable of being the base of significant parts of the global economy.”

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

ETH2 Status Update

There were some updates given to ETH2 in that same Reddit thread.

Ethereum Foundation researcher Danny Ryan commented to an attendee of the AMA that if the ETH2 contract does not get the requisite deposits in time for the launch, parameters can be adjusted.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
Ethereum Foundation Vitalik Buterin Talks ETH Inflation Rate

0 Like(s)



You should also read...

Altcoins 14/12/19 10:16 by bitcoinist.com
Vitalik Buterin: Ethereum Foundation Made $100 Million by Selling ETH at ATH
According to a recent statement by Vitalik Buterin, he managed to convince the Ethereum Foundation to sell 70,000 ETH at the height of 2017’s parabolic run, resulting in a $100 million liquidity...
Read More
Altcoins 14/12/19 20:25 by JP Buntinx
Vitalik Buterin Convinced the Ethereum Foundation to Sell $100m o Ether in 2017
Any revelation in the cryptocurrency industry tends to create some shockwaves. Even if that revelation has to do with funds being sold many years ago. Vitalik Buterin provided some interesting insigh...
Read More
Altcoins 15/06/20 17:38 by Brenda Ngari
Ethereum’s Vitalik Buterin Lambastes The Stock-to-Flow Model That Predicts 6 Figures For BTC Price
The co-founder of the world’s second-largest blockchain Ethereum, Vitalik Buterin, strongly disapproves of the Stock-to-Flow (S2F) model that has drawn a lot of attention in the crypto space.  ...
Read More
Altcoins 05/11/20 02:00 by Nick Chong
Ethereum Surges 8% in Past 24 Hours as ETH2 Deposit Contract Drops
After a strong drop earlier this week, Ethereum finally gained some strength on Wednesday. The price of the leading cryptocurrency surged 8% higher in the past 24 hours from $375 to a high around $409...
Read More
Altcoins 19/11/20 17:23 by Cole Petersen
Why This “Whale” Thinks Ethereum Could Soon Be “Better Digital Gold” than Bitcoin
Bitcoin and Ethereum are rarely compared beyond when discussing market structures and price trends, with their underlying fundamental values being wildly different. While Bitcoin is seen as a store of...
Read More