Will mining rewards for ETH decrease by 75%?
It’s amazing that in today’s crypto industry, multi-million dollar companies like Ethereum are listening to their users. It is enough to remember the usual banking sphere to see how cohesive and united the cryptoindustry is. Today, for example, digital silver representatives conducted a survey to see if the community is ready to reduce the mining reward. Users responded quickly enough and expressed their opinion regarding the reduction of mining profitability by 75%. Below we will tell you everything that is known on this issue. So let’s get started.
Who suggested limiting mining?
First, it is necessary to discuss the initiative itself, and only then proceed to its assessment, as well as to the opinion of users. There is a significant figure behind the proposal in the Ethereum ecosystem. One of the project leaders, the manager of the ConsenSys firm, built his own project on the ETH blockchain. ConsenSys is based on digital silver, which is why the fate of the coin is so important to John Lilik (that is the name of the company’s director). In his opinion, the future of cryptocurrency is impossible without introducing severe restrictions and reducing the mining reward.
The point is that ETH has no final emission. New coins emerge according to an endless algorithm. Thus, theoretically, inflation will start sooner or later. The market will simply overflow with coins. Users will no longer make sense to buy what every member of the industry already has. This is why John Lilik is proposing to cut the offered cryptocurrency mining rewards by as much as 75%.
Let us remind that similar events have already taken place before. Representatives of digital silver have repeatedly reduced the profitability of mining new coins. Previously, the reward for the mined block was 5 coins, but then this number was reduced to 3. The decrease in the amount by 40% was only the first such event. This was followed by a decline to the level of 2 coins.
Now, according to Lilik’s proposal, mining should bring miners about 0.5 of one ETH. We do not argue that this is a rather tough proposal. But perhaps it is necessary? Perhaps leading experts have confirmed Lilik’s words and are already ready to come to terms with the decrease in mining efficiency? Let’s take a look at the next section.
How has the community reacted to possible updates?
Let’s say right away – negatively. Users were outraged by the proposal, saying that the tomorrow of many project participants depends on Ethereum mining. That is why it is simply impossible to reduce profits so sharply and jeopardize the financial well-being of users. But, in addition to the moral side of the issue, it is necessary to note specific mathematical information. In fact, Ethereum inflation will not start very soon. Lilik noted that in his opinion, digital silver, sooner or later, will turn into Bitcoin. Recall that the first coin was released in 2009 and has a limited number of assets. This is why, in the conditions with BTC, problems with coins are indeed possible.