3 ms·
The problem is not what the inflation rate is at any given moment, but that it can be changed so easily, like the very switch to ETH 2 is an example of. The in
by beaner 6y ago
The problem is not what the inflation rate is at any given moment, but that it can be changed so easily, like the very switch to ETH 2 is an example of.
The inflation curve in Bitcoin is considered sacred. In Ethereum, it's developer whim and EIP approval.
- nootropicat 6y agoIt was known from the start that the PoW phase is just a temporary development phase, with no parameters set in stone. Eth2 has a deterministic inflation schedule that depends on total amount of stake. def calc_annual_reward(total_staked_eth): return math.exp(31556926 / 384 * 64 / 31622 / total_staked_eth ** 0.5) - 1 This is the return rate for validators - this should be multiplied by the average online percentage, eg. 0.9 if average participation is 90%. On top of that comes fee burning, which is inherently variable, but likely to lead to deflation at least initially. Extrapolating fees from the last 24 hours and assuming 10M eth is staked, the net result is a deflation of 1.3%.