Vitalik Buterin proposes ETH supply limit – he has stated that the maximum supply of Ether would be set at 120,204,432, “or exactly 2x the amount of ether” sold in its original sale in 2014.
2 April, AtoZForex – The co-founder of Ethereum, Vitalik Buterin, has laid out a new proposal that could serve as an answer for one of the Ethereum network’s biggest questions – whether a limit on the amount of ETH would ever be set.
Vitalik Buterin Proposes ETH Supply Limit
Mr. Buterin has outlined the new Ethereum improvement proposal (EIP), while he has shared his latest remarks on the matter. He has stated that the maximum supply of Ether would be set at 120,204,432, “or exactly 2x the amount of ether” sold in its original sale in 2014.
These remarks emerge as one of the first times Buterin has directly spoken on the topic of the platform’s monetary policy. This subject has previously caused a lot of critique, this from investors that have been raising questions about ETH potential to be a feasible investment opportunity.
Moreover, Mr. Buterin has stated that this idea, if embraced, would “ensure the economic sustainability” of the platform after the move to a new algorithm by which the Ether is created.
What if the ETH supply limit will be set?
In fact, Buterin’s outlook includes the coming shift as a perfect chance to provide more clarity on how who operate software to verify transactions will get rewards in the future. In addition, the precise terms of the initiative are still in the very beginning of the development
As per the post, Mr. Buterin forecasts situations in which a monetary policy would not be set until after 120 million ethers have been issued. At this point, he would propose another alternative limit at 140 million. Yet, it is worth to note that this idea is just a proposal at a current stage.
In case the idea goes through, Ethereum developers and users would still need to embrace the change. They would need to merge the formal code into the software that is compatible with the idea.
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