Share this article
120 Million? Vitalik Proposes Cap on Ether Cryptocurrency
The creator of the world's second-largest cryptocurrency has floated a possible change to the network's long-opaque ether issuance policy.
By Pete Rizzo
Updated Sep 13, 2021, 7:45 a.m. Published Apr 1, 2018, 12:10 p.m.
Make us preferred on Google
Vitalik Buterin has penned a new proposal that could lay the foundation for resolving one of the ethereum network's biggest outstanding questions – whether a limit on the amount of ether that could be created would ever be set.
In a new ethereum improvement proposal (EIP) authored April 1, the cryptocurrency's creator issued his latest thoughts on the matter, posing to developers and software users that the maximum supply of ether, the network's cryptocurrency, be set at 120,204,432, "or exactly 2x the amount of ether" sold in its original sale in 2014 in a forthcoming software change.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
As such, the comments mark one of the first times Buterin has directly addressed the platform's monetary policy, a subject whose lack of clarity has drawn critics, including from investors who have publicly doubted its potential as an investment opportunity.
While no more than 21 million bitcoins will ever be created as per the rules of the bitcoin protocol, ether has long had a more open-ended policy. Per the terms of the original issuance, up to 18 million ether are allowed to be issued every year, though it has long been said the terms would change following a milestone change to the protocol's design.
Elsewhere in Sunday's post, Buterin sought to position the idea, if embraced, would "ensure the economic sustainability" of the platform following the move to a new algorithm by which ether are created. (As profiled by CoinDesk, ethereum intends to soon ditch the proof-of-work model originated by bitcoin in favor of an alternative proof-of-stake algorithm called Casper.)
Indeed, Buterin views the coming shift as an ideal time to provide clarity on how those who operate the software necessary to verify transactions will be rewarded in the future, even if the exact terms are still clearly in the ideation phase.
According to the post, Buterin foresees situations in which a monetary policy wouldn't be decided until after 120 million ether have been issued, at which point he has proposed selecting another alternative limit as high as 140 million.
Still, it's important to note that the proposal is just that – a proposal.
Even with the statements, ethereum developers and users would still need to embrace the change, merging the formal code into the software that the idea would require. As such, while notable, it may just be the start to a process that could take months or years, if pursued.
Image via Pete Rizzo for CoinDesk
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
Di più per voi
HYPE token surges 24% as silver futures volume soars on Hyperliquid exchange
Silver futures on the crypto derivatives exchange are currently showing $1.25 billion in volume and $155 million in open interest.
Cosa sapere:
- HYPE, the native token of the Hyperliquid derivatives exchange, jumped 24% in 24 hours as trading in silver, gold and other commodities surged.
- Silver perpetual futures on Hyperliquid became the platform’s third most active market during Asia hours.
- Because trading fees from user-created markets are used largely to buy back HYPE on the open market, the spike in commodity activity is fueling demand for the token and signaling broader growth for Hyperliquid.
Top Stories
