Ethereum will impose severe restrictions on mining

Limit the number of others and the size of the reward for the miners.

03.Apr.18 3:50 AM
By Jeff Bannister
Photo Toinnov.com

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Ethereum will impose severe restrictions on mining

In the Ethereum network, significant changes are coming. Vitalik Buterin, one of the developers of Ethereum, reported in his GitHub account about the intention to limit the total number of broadcasts. The named limit is 120 million ETH. At the moment, there are 98 million ETH in the turnover of the platform. However, if within a year the number of ETH does not reach the limit, it will be set at 114 million ETH.

According to Buterin, restrictions are necessary to ensure the economic sustainability of the platform in the future. Only under such condition, the platform will be able to avoid inflation, which is waiting for all significant crypto-currencies regarding market regulation by the states. As a consequence, the size of the reward for the miners will be reduced by 80%.

Developers have already announced the characteristics of the next update Friendly Finality Gadget Casper (FFG Casper). And this news did not make the miners happy because the reward for the production of the others decreased by only 0.6 ETH. The network plans to finally switch from the Proof-of-Work algorithm to a hybrid model that combines both Proof-of-Stake (PoS) algorithms. The new rules will come into force within two years. The most probable forecast is the first quarter of 2019.

You can expect that this news will lead to an increase in the rate of ETH.

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