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ZCash community that tries to slow down the crypto inflation
Cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), ZCash (ZEC) and their siblings, have long been praised as a way to curb the inflation of legal currencies. While the Bitcoin offering has undoubtedly increased (and will continue to) over time, the asset issuance program is predetermined and follows a rigid deflationary curve. In the end, there will be 21 million BTCs, no more or less – and this ecosystem will work without a gradual inflow of new currencies.
But with fiat currencies, especially in nations like Venezuela, the government's ability to print money can quickly get out of hand, with paper money sometimes becoming just as valuable as toilet paper. As recently put by Alex Gladstein in a recent TIME Magazine column that praises the cryptocurrencies, "Bitcoin can be a way out" for "the 4 billion people who can not trust their rulers or who can not access the banking system".
Yet, strangely enough, ZEC, the famous cryptocurrency for privacy, which has long been a forerunner in the blockchain industry, has had some inflation problems. More specifically, as recently stated by the ZCash Company CEO in person, Zooko, there was a considerable amount of ZEC issued every day.
As expected, the github thread about radically updating Zcash is warming up. https://t.co/vUoILxwQX0 It is important, because at today's prices there are more than $ 400K / day of new issue Zcash: https://t.co/D7imLPsfse pic.twitter.com/tThFy53LRF
– zooko (@zooko) 2 January 2019
Citing the data of Messari, one of the leading cryptographic analysis providers, more than 400,000 USD of ZEC are issued every day, amounting to about 0.11% of the daily inflation rate at current prices. To give this figure a certain perspective, Bitcoin has a daily inflation rate of ~ 0.01%, while Ethereum is barely shy to double. And while Zooko noted that the market is absorbing the supply influx, some changes could be made.
In particular, Zooko drew attention to a GitHub thread that talked about "Harmony Mining", a proposal to modify the Proof of Work that would be implemented in ZCash & # 39; s Blossom if approved. Harmony intends to change ZCash's consent mechanism into two algorithms, in which an algorithm will be backwards compatible with current ASICs, while the other will work well with GPUs on a "temporary time scale". It was explained that this change would "spread the issue and political influence among different types of stakeholders," probably creating a less inflationary environment.
The GitHub users of the Tromp, Daira, Zebambam, Nathan monikers and others have already started to discuss the issue, but they are still not sure how to correct the issue at the moment. Nathan said the current "limits" could limit the issuance to $ 416.52 to $ 21.658 of the ZEC value at current prices, but these numbers are still in the early stages.
ZCash Blossom, the next important stage of project development, is scheduled to be activated by the end of October, a year after Sapling's release.
Curbing Inflation Crypto – A trend in the industry
As explained above, cryptographic activities are also seen as a solution to inflation, among other things, so the slowdown inflation of this new asset class has become a bit of a trend for sector. Ethereum Constantinople, as reported previously by Ethereum World News, is scheduled to launch within two weeks and will reduce the emission of Ether by a third. However, this is not the last emission cut of the project. As illustrated below by Eric Conner, one of the main lovers of cryptocurrency, if Serenity (Proof of Stake) goes live according to plan, the emission of Ether will fall under that of Bitcoin.
Ethereum and Bitcoin emission rates up to 2025. pic.twitter.com/RqNCsqlb27
– Eric Conner (@econoar) December 30, 2018
In fact, once Phase 2 of the Serenity moves, the issue will not be substantially null. However, considering that a decrease in Ether's supply can discourage stakers or miners, drastic emission changes appear to be experimental at best.
Title Image Courtesy of Karim MANJRA on Unsplash
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