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The issue of blockchain Ethereum will be reduced in 2 times after the transition to Proof-of-Stake

Co-founder of the network of the largest Aldona reported that the annual production of tokens after the transition to Ethereum 2.0 will be limited to 2 million ETH a year, less than half of current numbers.

The head of blockchain Ethereum Vitalik Buterin recently shared several important aspects of the plan to move to ETH 2.0 in his latest interview podcast with POV Crypto Internet Money.

Buterin said that the issue of tokens in Ethereum 2.0 will be limited to two million ETH a year — less than half the annual production of tokens for Ethereum, which now stands at 4.7 million per year — and may cost hundreds of thousands.

Discussing some of the events that acne Buterin also explained why they decided to change the Protocol Proof-of-Stake. Talking about this updated mechanism of consensus, Vitalik said:

“One of the reasons we’re doing Proof-of-Stake, is that we want to significantly reduce the release of the [new tokens]. Therefore, the specifications for the ETH 2.0 I think we calculated that the theoretical maximum output would be about $ 2 million a year if [stacking] will participate every [user]”.

The developers of Ethereum actively worked to create a platform Ethereum 2.0, which will be a serious transition from a consensus-model Proof-of-Work (PoW) to Proof-of-Stake (PoS).

Two weeks ago, the developers of Ethereum also the plan launched testnet Ethereum 2.0 Topaz. Moreover, immediately after the mining of the Genesis block of the Ethereum test network soon reached 20’000 validators.

In addition, current participation in testnet involves adding 100’000 ETH a year. In addition, Buterin also said that the total volume of current supply may be reduced during a transaction with a large volume.

“There is this basic option fee, which is applicable to Protocol”, — explained Buterin.

Recently became available calculator rewards for staking Ethereum 2.0 after the transition to Proof-of-Stake.

Another important update for Ethereum 2.0

This will be another major network upgrade blockchain Ethereum 2.0. In response to network activity will change the block size instead of the size of the Commission.

Buterin notesthat:

“Is the volatility of transaction fees we will have volatility block size”.

Reasonably expected that this approach will help to overcome some of the existing problems, such as accurately predicting the optimum amount of fee for the transaction at relatively large time transaction processing.

Ethereum (ETH) is currently trading 75% higher prices early in the year. At the time of publication ETH sold for 197 dollars with a market capitalization of $ 22 billion. During the correction of the cryptocurrency market in March 2020 the ETH price fell about $ 100, however, in the last 40 days, she showed steady growth.

Publication date 04.05.2020
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