Vitalik Buterin to Propose 120M Cap on Ethereum

According to the the co-creator of Ethereum, this will provide the economic sustainability of the platform 
02 April 2018   297

April 1, Vitalik Buterin published a new proposal to improve the protocol Ethereum (EIP 960), according to which the maximum volume of the ETH proposal can be limited to 120 204 432 ETH.

Accordfing, this number is equivalent to multiplied by two volumes of the ETH, implemented in 2014 during the project's crowdsale.

Thus, Buterin intends to make significant changes in the monetary policy of the platform, whose investment attractiveness has often been criticized by many representatives of the crypto community. So, if the bitcoin offer is strictly limited to only 21 million coins, then the Ethereum protocol rules are arranged in a completely different way - the ETH issue is limited to 18 million coins a year.

According to Buterin, the new proposal is designed to "ensure sustainable economic development" of the platform.

In the longer term, the supply would exponentially approach the max cap and the rewards would exponentially approach zero, so if hypothetically Ethereum stays with proof of work forever, this would halve rewards every 744 days. In reality, however, rewards will decrease greatly with the switch to proof of stake, and fees such as rent (as well as slashed validators) will decrease the ETH supply, so the actual ETH supply will reach some equilibrium below MAX_SUPPLY where rewards and penalties/fees cancel out, and so rewards will always remain at some positive level above zero.

Vitalik Buterin

Co-creator, Ethereum

As an alternative, the creator of Ethereum also proposes to consider limiting the emission of ETH to 144 million coins.

EIP-999 Debate to Divide ETH Community

EIP-999 is designed to unfreeze the Parity wallet frozen ETHs
24 April 2018   105

Disputes over one of the most ambiguous proposals for improving Ethereum (EIP) are inflaming with renewed vigor. This reported by CCN.

EIP-999, written by Parity Technologies developer Afri Schödön, suggests updating the Ethereum software in such a way to return owners access to 513,000 ETH, frozen in the Parity wallet.

These funds, which are estimated at about $ 330 million today, were frozen in November of last year after the GitHub user, under the pseudonym devops199, discovered, as he himself says, a random bug in the source code of the contract, which allowed him to destroy the library.

As a result, about 600 wallet holders lost access to their money, including Polkadot, the project of former technical director Ethereum and founder of Parity Gavin Wood. At the Polkadot wallet, there are currently over 306,000 ETH or about $ 200 million at the current exchange rate.

This proposal is necessary because the Ethereum protocol does not allow the restoration of self-destructed contracts and there is no other simple way to enable the affected users and companies regaining access to their tokens and Ether.

Afri Schoedon

Developer, Parity Technologies

Previous EIPs with such proposa have faced a sharp rejection of the Ethereum community. EIP-999 has also been criticized, because the only problem that it proposes to solve is to unfreeze the funds on Parity's wallet.

Voting on the Etherchain portal, in which any holder of Ethereum can participate, signing a message with the help of their wallet, where the weight of each voice is equivalent to the amount of ETH on the wallet, showed that there is no agreement. Holders of 52.6% of funds or about 1.6 million ETH voted against the update.

EIP999 Voting
EIP999 Voting

However, social media users have raised two major criticisms of the poll. First, the poll allows contract creators to vote for the funds stored in those contracts — even if they are multi-sig wallets. Consequently, Polkadot was able to use its 306,000 ETH — which are not spendable unless EIP 999 or another similar measure is enacted — to vote in favor of the proposal.