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Ethereum Developers Discuss Reduced Issuance By 2021

ยท in Breaking, Crypto News
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

Ethereum (ETH) developers are currently debating whether to reduce the issuance of new coins. This is according to an estimated timeline that the recognized researcher at the Ethereum Foundation Justin Drake released. The information was released by TrustNodes on July 10. 

Ethereum Could Reduce Its Issuance By 10x

Ethereum users could eventually experience a rapid price increase if the timeline shared by Justin Drake gets confirmed. According to him, beacon chain will be launching as soon as January 2020. After it, in June, eth2 light clients will be production-ready. He then explained that in March 2021 a hard fork is prepared with the intention to reduce ETH issuance by 10x. 

Although he said that the dates are likely totally wrong, he provided information about which are the goals that the team behind the Ethereum Foundation has in mind for the next months and years. 

Mr. Drake mentioned:

“A few non-technical things that are harder for me to predict: How fast we will get 2 million ETH (65,000 validators) for the beacon chain launch. How fast eth1 governance is willing to move with the two hard forks.”

In the past, many thought that issuance was going to be reduced from 2 ETH per block to 0.22 ETH per block. Sharding is expected to be launched around 2021. The transition to the new Proof of Stake (PoS) should take a few years before it is possible to discard a Proof of Work (PoW) solution. 

Drake has also mentioned that there could be a hybrid transition period in which stakers can secure the PoW chain using decentralized checkpoints, which the researcher called finality. If this is implemented, PoW blocks would be rewarding users with 0.6 ETH. 

At the same time, the PoW mining difficulty bomb is also expected to be activated close to March 2020, which would have to eventually be delayed again. At the moment, there is no clear decision among developers about what to do in the future. 

Ethereum is one of the largest digital currencies in the market, and its future is clearly of importance for many of other projects in the space. There are many tokens based on top of Ethereum and the way it functions would have a big influence in the future of this network. 

At the time of writing, Ethereum is the second-largest digital asset with a market capitalization of $31 billion and a price per coin of $291, according to CoinMarketCap. 

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