Up to 2 Million ETH to Be Printed Indefinitely Says Vitalik Buterin – Trustnodes

Up to 2 Million ETH to Be Printed Indefinitely Says Vitalik Buterin


Ethereum staking rewards, Nov 2020

Up to two million eth a year, currently worth $1 billion, is to be minted effectively indefinitely according to Vitalik Buterin, the ethereum co-founder.

Speaking during an ask me anything session, Buterin said much is in flux for the next two years, However:

“The issuance schedule is ~4.7M per year for the next ~1-2 years or however long it takes until the merge, and then ~0-2M per year minus burned fees (which could be even greater than the issuance!) once PoS is fully in place. I don’t think it’s even productive to give any kind of different answer.”

Ethereum’s current supply is 113 million eth, with some ◊4.7 million, or $2.2 billion at current prices, to be minted every year until 2022 at the earliest with Justin Drake, an eth dev, stating the merger is not expected next year.

Thereafter issuance is variable depending on how many stake, with some eth devs stating they do not realistically expect more than one million eth a year to be issued.

Buterin however says it could be all the way up to 2 million, or about 2% of the current supply, while bitcoin at the time would be looking forward at an inflation rate of near zero.

However ethereum devs have been talking for some time about burning a portion of the transaction fees, something that would take eth out of network users to effectively give it to stakers and holders.

What effect that would have in regards to concentration of staking rewards is not clear, but for holders, that should reduce some pressure from new supply as such fees would have instead gone to stakers.

However, whether this burned eth does actually change how much of the non-burned fees go to stakers is not clear because presumably there would still be the auctioning style of block entry despite the base fee being burned.

Meaning there could be concentrationary effects here which in bitcoin are somewhat addressed through the halvening schedule.

While in eth, it appears they’re going more for a relatively fixed yearly new supply to make this coin effectively inflationary at least as far as things currently stand.

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