With Ethereum ‘Ice Age’ Incoming, Momentum Builds for Miner Pay Cut

mammoth, ice age

A vote currently taking place on ethereum’s mining rewards has motivated a big response from its community, despite the fact that its results are non-binding.

Described simply as a ‘show of preference’ by organizers, the vote is designed to indicate support for Ethereum Improvement Proposal (EIP) #186 – a change that, if implemented, would reduce the reward allocated to miners from the current level of 5 ethers per block to a lower figure.

According to the proposal’s abstract:

“A reduction in the issuance of ether is very likely to be price-supportive and lead to increasing investments in the platform and to help ward off speculative attacks on the value of ether by promoters of competing platforms who offer, or plan to offer, reduced token inflation rates.”

Besides the financial aspect, the proposal is also linked to the coming ‘ice age’, hard-coded into the technology.

At this point, ethereum is set to incentivize its transition from ‘proof-of-work’ (PoW) to ‘proof-of-stake’ (PoS) consensus at which time an exponential rise in block difficulty will make blocks virtually impossible to solve by PoW.

Price shift

In a conversation with CoinDesk, Matthew Light, software developer and author of EIP186, explained more of the logic behind his proposal.

Read more ... source: CoinDesk

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