Report: nearly $ 2.5 billion annually paid to etereum miner, the issue of ETH emissions continues

Despite declining prices and endless scalability debates, the Ethereum protocol continues to collect huge earnings for network miners, with data confirming payments of $ 2.5 billion a year.

Ethereum Miners Rake in Big Money [19659004] According to a report on TrustNodes mining revenue account for about 8.3% of the Ethereum market [19659006] – which amounts to $ 30 billion at the time of

In a 24-hour period, according to data collected for August 11, Ethereum miners in the network received over $ 6, 6 million in incentives, including basic compensation for the block, mining fees and "uncles" premiums. Spread over 365 days, the numbers amount to over $ 2.36 billion; perhaps even larger when prices rise for ETH

The inflation of Ethereum was also calculated at 7.3%, twice that of the Bitcoin that paid to the miners $ 12.7 million on the same date. Bitcoin annual payments for miners translate into over $ 4.5 billion or just 4% of total market capitalization.

Addressing The inflation rate of Ethereum the report takes into consideration the protocol's decision to delay the "difficulty bomb" as a commensurate factor. This is an imminent update of the program to combat the growing threat of the ASIC miners by switching the system on a Proof of Stake protocol.

However, Casper's expected update is unlikely to be deployed until mid-2019. Thus, the so-called difficulty bomb is postponed indefinitely and the supply limit for ether remains unknown – factors that they add up to a high inflation.

Issue Issue of etereum

Before Casper, Ethereum [19659003] did not expect a supply limit of more than 100 million aether. However, the current circulation offer stood at 101.3 million according to CoinMarketCap data.

The reduction of this issue was suggested by Ethereum developers to keep inflation at bay, or at least, at the same level as Casper

To mitigate uncertainty which surrounds the maximum Ether offer, four different proposals have been proposed by different schools of thought: increase block premiums to 5 ETHs (thus increasing inflation to 14%), remaining stable at the same time. current block premium [19659003] of 3 ETH, reducing to 2 ETH, and ultimately reducing the reward to only 1 ETH.

Of these proposals, a 1 ETH reward award resonated more with Ethereum [19659003] community, with 65,000 ETH votes in favor of reducing low-value block incentives. The amount of the vote is $ 21 million at today's prices, which implies a strong push for the proposal.

If deployed, inflation would fall to 2.3%, two years before the 2020 inflation forecast of the comparable Bitcoin value.

Only $ 7 the value of millions of ETH was voted in favor of the proposal of the 2nd ETH with an inflation rate of 4%

A small 2.1 ETH was voted with the network that continues its alarming inflation rates and removes Casper updates from its plans completely

Lower incentives to the cost of security?

Some miners complain of low earnings that could mean lower earnings for them, however, by reducing the maximum supply of ether and officially limiting its value, an increase of fiat the price can be expected to the low amount of ETH assigned.

But, such economic considerations have a lower priority to consider whether Ethereum & # 39; s reward of the block wi It will be sufficient to stimulate robust security.

Compared to Bitcoin, ETH transactions were recorded at $ 365 million per day against the $ 4 billion pioneering pseudo-currencies. This data is equivalent to the reward of $ 80,000 per Bitcoin block and only $ 1,150 for Ethereum . However, the former has a lock time of 10 minutes, while the latter is only 15 seconds.

With the context mentioned above, a reward block of 2 likely ETHs seems to keep inflation under control, provide sufficient incentives and balance the many needs of the platform Ethereum .

Cover picture by Patrick Robinson on Unsplash

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