Everyone is talking about Bitcoin halving, none is talking about the second block reward reduction of Ethereum Classic (ETC) that is coming in a few days. In this post I will give some basic details on ETC and the coming mining rewards reduction.
Ethereum Classic (ETC) is an open source public blockchain platform that runs smart contracts and decentralised applications (dApps). ETC is in fact the original Ethereum chain that remained after the DAO hack that caused the division in the community. ETC prides itself on being decentralised, immutable and unstoppable. This was proven by resisting chain reorg after the infamous DAO hack. So Ethereum Classic is the continuation of the original Ethereum (ETH) chain and exists to preserve the principle of “CODE IS LAW”. Ethereum (ETH) is again planning to have a major protocol change by moving to proof of stake (POS) protocol, also known as ETH2.0. This will further cement the “Original Ethereum” narrative of ETC.
On the 11th of December 2017a proposal ECIP-1017 was activated on the mainnet. In this proposal the disinflationary token issuance policy was introduced in which the block reward will reduce by 20% every five million blocks. That means that the total supply will not exceed 210.7 million ETC.
At the time of writing ( 06 March 2020) the block reward is set at 4 ETC. The reward will reduce by 20% to 3,2 ETC at block 10,000,000. The current block height is 9,929,747; meaning that we are only 70 253 blocks away. The current block production time is 3,4 seconds, this give us 12.7 days to block 10,000,000. The block reduction will take place around the 17th of March 2020.
The reduction in token emission could result in price appreciation of the asset. It will be interesting to see the effect of this major event of the platform
