Ethereum Classic will undergo a hardfork?

Ethereum Classic cryptocurrency will undergo the upgrade of the protocol level on December 12 due to the adoption of a new monetry policy
28 November

Ethereum Classic will have a protocol level upgrade ECIP-2017 which is aimed at the stabilisation of the coin supply and considered as a hardfork of the coin. It is planned to go live on December 12.

At it is stated on the official ECIP-2017 website  the reason for a new network split is that the community needs to adopt a monetary policy that balances the long-term interests of investors, developers, and business operators. Ethereum Classic Improvement Proposals (ECIPs) are technical write-ups that describe suggested changes to the Ethereum Protocol.

The block reward will be reduced by 20% at block number 5,000,000, and another 20% every 5,000,000 blocks thereafter. Uncle block rewards will also be reduced. Due to variations in the reward rate of ETC, the total supply is planned to be approximately 210 million ETC, not to exceed 230 million ETC.

At the moment of press, these are main market parameters of Ethereum Classic:

  • Average price: $33.61
  • Marketcap: $3,289,165,691  
  • 24h volume: $1,671,850,000

Ethereum Classic hardfork implemented

ECIP 1017 proposal for Ethereum Classic network implemented
12 December

At 11th of December, the Ethereum Classic hardfork implemented at block 5 000 000.

Thanks to the implementation of the ECIP 1017 proposal, the predicted total supply of crypto currency will be limited to 210 million coins (and not 230 million, as it was before). Decrease in supply will be achieved through the implementation of the deflationary model of monetary policy. The latter implies a 20% reduction in the reward for the block now, and then every subsequent 5,000,000 units extracted.

Currently, the production rate of 250,000 blocks is about 40 days. Thus, with the same level of network complexity, the next reduction of the award by 20% will be approximately in two years.

According to the developers of Ethereum Classic, such a monetary model is optimal, since it excludes uncertainty associated with "halves" and makes coin emission more stable. This, in their opinion, in the future should favorably affect the exchange value of the currency.