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Ethereum co-founder Vitalik Buterin announced the expected reduction in Ethereum’s annual issue from the current 4.7 million coins to 100,000-2 million after switching to the Proof of Stake consensus algorithm. He quoted this view on the Internet Money podcast.
Buterin explained that the rejection of the Proof of Work in favor of the Proof of Participation is due to the desire to reduce inflation on the blockchain.
“In the specifications for the next stage 2.0, we take into account that the theoretical maximum emission will be approximately 2 million ETH per year. This is subject to the fact that literally all members of the community will participate in the stakeout. ”Buterin explained.
According to the forecasts of the creator of Ethereum, the indicator is likely to be slightly below this theoretical maximum, while the theoretical minimum is equal to 100,000 ETH. So far, miners mine 4.7 million ETH annually.
Buterin also reported on the possibility of situations where, during a period of a large number of transactions, due to the burning of part of each commission, the total supply of ethers may even decrease.
“The fee in the protocol to send a transaction is divided into two parts: the first is sent to the miner, the second is simply burned”– Ethereum co-founder recalled.
Another feature during the transition to stage 2.0, according to him, will be a change in block size in response to fluctuations in grid activity, while now being regulated by adjusting the cost of gas:
“Instead of volatility in transaction fees, volatility will appear in the block size.”
Buterin noted that such changes will allow us not to think about the optimal amount of commission and reduce excessive transaction processing time.
Remember, recently, the developers launched a test network called Schlesi with multi-tenancy support, which will become one of the training grounds to study the future operating environment of the ETH 2.0 core network.
Unlike the Topaz testnet released on April 18, as well as other versions of Sapphire, Nimbus, and Lighthouse, which was born on Monday, the Schlesi test network supports multiple clients at once: Prysm and Lighthouse.
Representatives of the cryptocurrency community are convinced of the growth of the market and the upcoming transformation of the decentralized financial space after Ethereum’s transition to stage 2.0 with the possibility of rethinking.
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