Ethereum team cuts block reward to curb inflation

Ethereum is undergoing a 33% block reduction reward, in a move that’s been praised by cryptocurrency advocates…

by Manoj Sharma for CNR

Development is, of course, the key to the growth of any product or service, and it looks like the Ethereum team has taken that to heart. As such, it held a lengthy meeting to discuss the future of its brainchild, and came up with some ideas going forward.

The 31st August meeting, dubbed “Ethereum Core Developers meeting Constantinople Session #1”, covered multiple topics including updated consensus algorithm, ASIC resistance, and such like.

However, after some time, the discussion changed to one of the hottest topics within the crypto community: the rules surrounding the issuance of Ether. After discussing Ether issuance, the core developers decided to confirm a 33% block reward reduction, from 3 ETH to 2 ETH according to Ethereum-Improvement-protocol 1234.

Due to the announcement, some crypto enthusiasts were really rather pleased. Eric Conner, a crypto proponent, posted out the issuance numbers for Ethereum, and praised the decision of the team…

A Venezuelan Crypto commentator, Eduardo Gomez, alluded to the theory that a smaller Bitcoin block reward will only bolster price in the long-run.

There’s some precedence to back that up, too. As per the history of Bitcoin halving events, it seems that history may well repeat itself. In that particular case, the price surged when Bitcoin was halved from 25 BTC to 12.5 BTC.

In related news, the Constantinople EIP-1234 move will give developers more time to work on the Casper protocol as it will delay Ethereum’s ‘difficulty bomb’. This would move the network from the POW model to the POS system. More on that as we hear it.

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