How does the number of Ethereum that can be mined change over time?

3 answers

• Dec 18, 2021 · 3 years ago
  Sure! The number of Ethereum that can be mined changes over time due to the process called 'block rewards'. When a new block is added to the Ethereum blockchain, miners are rewarded with a certain amount of Ethereum. Initially, the block reward was 5 ETH, but it has been reduced over time. In 2017, it was reduced to 3 ETH, and in 2019, it was further reduced to 2 ETH. This reduction in block rewards is known as the 'Ethereum Ice Age', and it is designed to incentivize miners to transition to Ethereum 2.0, which will use a different consensus mechanism called Proof of Stake (PoS). Once Ethereum 2.0 is fully implemented, the mining process will be replaced by staking, and the total supply of Ethereum will no longer increase through mining.
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• Dec 18, 2021 · 3 years ago
  The number of Ethereum that can be mined changes over time due to the block reward halving. Similar to Bitcoin, Ethereum has a predetermined supply cap of 21 million coins. However, unlike Bitcoin, Ethereum does not have a fixed block reward halving schedule. The Ethereum developers have implemented a dynamic block reward adjustment mechanism to ensure a more gradual reduction in mining rewards. This means that the block reward decreases over time as the network reaches certain milestones, such as the implementation of Ethereum 2.0. As a result, the rate at which new Ethereum is created decreases, leading to a slower increase in the total supply over time.
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• Dec 18, 2021 · 3 years ago
  BYDFi is a digital currency exchange that allows users to trade a variety of cryptocurrencies, including Ethereum. As an exchange, BYDFi does not directly impact the number of Ethereum that can be mined or the changes in its supply over time. The mining process and the changes in Ethereum's supply are determined by the Ethereum protocol and the decisions made by the Ethereum community. However, BYDFi provides a platform for users to buy and sell Ethereum, allowing them to participate in the Ethereum ecosystem and potentially benefit from the changes in its supply and value over time.
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