Vitalik Buterin proposed to set the emission limit of Ethereum at 120 million ETH

On April 1, Vitalik Buterin proposed to include the EIP 960 proposal in the second part of the metropolis hard fork, in which he proposes to limit the amount of ETH in circulation and reduce the remuneration of pow miners. And this is not a April fools joke.
The preamble to the proposal reads as follows::

In order to ensure the economic security of the platform under all circumstances, and in light of the fact that the issue of new coins for miners is no longer an effective way to ensure the fair distribution of coins, and for any politically meaningful purpose, I propose to set the upper limit of the total number of ETH.



During the next hard forks (which is likely to be included the first phase of the Protocol, Casper), the sentence expresses the remuneration of the miners, interest income validators and validators remuneration of the individual shards, as well as any other types of rewards included in the primary Protocol, the "unit of compensation" or RU (Reward Units), defined as :

1RU = (1 - (current number of coins/maximum possible number of coins)) ETH.

The maximum number of coins Buterin offers is set at 120 204 432, which is a doubled amount of ETH distributed in the first crowdsale.
Thus, assuming a maximum of about 120 million, and the current amount of ETH in circulation of 98.5 million ETH, we get that now 1 RU is equal to 1-98.5 M / 120M or about 0.1792 ETH, so that if the hard fork was held today, the current reward of 3 ETH for the block would equal 16.74 RU. After one month, the number of ETH will increase to 99.1 million, and 1 RU will decrease to 0.1742 ETH, respectively, the reward for the block will be 16.74*0.1742=2.91555 ETH.

In the future, the total number of coins should asymptotically approach the maximum possible, and accordingly, the reward for the block will similarly seek to zero, so that, assuming that Ethereum will forever remain on PoW, the upolovinivanie awards will occur every 744 days.



In reality, the reward for the block will decrease even more significantly with the transition to POS. Moreover, the total number of coins in circulation will be further reduced due to the commissions for storing information on the blockchain and penalties for validator deposits (these amounts will be burned). Thus, the total number of coins in circulation, taking into account the payments to miners/validators, will find a balance on a certain value, less than the maximum.

The proposal notes that if, for any reason, the value of 120 million will be set late (ie, if the hard fork Metropolis 2 delayed), Buterin offers the upper limit of 144 052 828 ETH-is doubled the number of coins contained in the Genesis of the block and includes crowdsale and premium.

The introduction of EIP 960 was quite unexpected, therefore, many commentators even believed that it was an April fool's joke. At the same time, proposals to limit emissions have been heard for a long time, but so far this has been in the form of free discussions.

The decisive impetus, apparently, was the prolonged drop in the rate of cryptocurrencies over the past three weeks. However, submitting a proposal does not imply endorsement and it is not yet known whether it will be supported by the developers and the community. From the developers have responded Hudson Jameson (Hudson Jameson), who expressed approval of the idea in the comments branch Reddit. The overall tone of the comments is also generally supportive, although many continue to doubt whether this is a joke.



And here to whom not to jokes, so it to miners of Ethereum, even the reduced remuneration will get to them not completely - Casper FFG - the first stage of transition to POS will receive part of it. The amount of their remuneration has not been announced yet, although the figure of 0.6 ETH per block has been repeatedly mentioned in the discussions. Most likely, EIP 960 will be discussed in detail at the next meeting of Ethereum developers, which is scheduled for Friday, April 6.
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