Ethereum Paying Nearly 10% of Its Market Cap to Miners, Holders Vote to Reduce it By Two Thirds

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Summary

That would give an inflation rate of 2.3%, lower than bitcoin’s until 2020 when they would then be at a similar inflation rate. Ethereum is paying miners around $2.5 billion a year at current prices while its market cap stands at $32 billion. Around $365 million eth moved in the past 24 hours, with $580 being the average value of an eth transaction. That can only be done once, while the block reward is constant. That means ethereum’s inflation rate is currently at 7.3%, almost double that of bitcoin, which paid miners $12.7 million in the past 24 hours.

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Ethereum is paying miners around $2.5 billion a year at current prices while its market cap stands at $32 billion.

Including the block base reward, uncles rewards, and mining fees, ethereum has paid miners around $6.6 million in the past 24 hours, translating to $2.36 billion a year.

That means ethereum’s inflation rate is currently at 7.3%, almost double that of bitcoin, which paid miners $12.7 million in the past 24 hours. Translating to $4.5 billion on a market cap of around $109 billion or just about 4% of the total supply.

This considerable inflation rate in ethereum is up for discussion due to a necessity to delay the difficulty bomb which is programmed to make mining almost impossible so as to incentivize a move to Proof of Stake.

Casper, however, will probably not be ready now until next year. The difficulty bomb, therefore, has to be postponed, but doing so without reducing issuance mean inflation continues at a higher rate than was planned.

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