- Vitalik Buterin has recently spoken on the issuance of ETH 2.0.
- He says that the upgrade will be significantly reduced as he discussed the differences between the leading crypto and his own.
- Buterin explained why the team chose a proof of stake protocol as the upgraded consensus mechanism too.
The co-founder of one of the biggest crypto projects in the industry ETH, Vitalik Buterin has recently spoken on the issuance of ETH 2.0. He says that the upgrade will be significantly reduced as he discussed some of the key differences between the leading cryptocurrency and his own. On top of this, Buterin explained why the team chose a proof of stake protocol as the upgraded consensus mechanism.
Talking in a podcast interview with POV Crypto called Internet money, Buterin said the following:
“One of the reasons why we’re doing Proof of Stake is because we want to greatly reduce the issuance. So in the specs for ETH 2.0 I think we have put out a calculation that the theoretical maximum issuance would be something like 2 million a year if literally everyone participates.”
Furthermore, he said that the current testing at participation experiences around 100,000 ETH issued on a yearly basis. Looking at the current state of the ETH network, there is about 4.7 million of the token issued annually. For issuance on ETH 2.0, it is expected to be somewhere between 100,000 and 2 million per year. However, reality indicates that it will be much less than 2 million.
Also mentioned in the podcast by the co-founder was that the overall circulating supply for the project could see a net reduction at times of high transaction values. This is due to a portion of each feed being burnt. He said that there is a base fee parameter which the protocol charges and explained that when you send a transaction, the transaction fee is broken down into two separate parts.
ETH 2.0 is seeing significant support from the community. News surfaced earlier this week that a major mining pool and by OKEx will be joining the ETH 2.0 test net Topaz as a validator.