The founder of Ethereum Foundation in his recent post on the Github platform is proposed to introduce a limited supply of cryptocurrency to 120 million ETH.
Many users took the news as an April fool’s joke, however, those who seriously took the words Buterin, most responded positively.
Ensuring economic sustainability
“To ensure the economic sustainability of the platform in the broadest possible limits, and in light of the fact that the release of the new coins for algorithm Proof-of-Work (PoW) is no longer an effective method, I propose to limit the total number of tokens”, — he wrote.
With regard to improving the EIP, Buterin suggested that the implementation could happen during the next hard forks of Ethereum.
Most likely, the innovation will be the first phase of Casper.
All rewards under the Protocol, such as payment for mining, interest rates, and any future awards will be revised, considering the limit emission Ethereum.
Buterin proposed to set a limit on 12020432 millions.
This is 2 times higher than sales during krautsalat in 2014.
Currently, the network produced 98 million units.
He also added that in case of any delay in the implementation of the EIP this number can be changed:
“If for some reason EIP is adopted too late, you can set the maximum limit of 144 052 828 ETH, or exactly twice the amount released in the genesis block”.
For miners, if Ethereum will remain with the model Proof-of-Work, the rewards will be reduced. If the network is transferred to the algorithm Proof-of-Stake (PoS), the reward for mining the cryptocurrency will decrease independently. Casper is an update of a working model at the PoS.
Answers to investors questions
The Ethereum have been criticized for what has not previously set limits on the number of issued coins.
According to some users, this has reduced the capacity of scriptactive of investment.
An infinite supply of tokens may indicate that the cost of each is reduced to the extent that, as a greater number of coins entering the market.
The price of cryptocurrency, like everyone else, followed the recent downward trend.
Still no news about whether Buterin support from the core group of developers of the company.
Therefore, we cannot say for sure that the update will be implemented.
The proposal, however, is quite serious. If it will be implemented, the potential of an asset may encourage more investors to invest in it.