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Ethereum removed the 100M soft cap on EIP 669. This was quietly slipped through with no debate. ETH shouldn't be trusted.

Entwickler 6y ago
Can you provide evidence of no debate, and reasons on why the soft cap is a bad idea when transactions burn eth anyways and the eth inflation rate is around 4% per year, and slated to drop to 0.5%-2.0% with the transition to ETH 2.0?
- whoisninja 6y ago
  typical monetary policy issue, if it is easy to change - they will keep changing
rodiger 6y ago
Inflation is good for currencies / anything that's meant to be used.
- spurgu 6y ago
  One exception to this that pops to mind is computers, which have gradually gotten cheaper. Even though you always get a better one if you wait, it hasn't deterred consumers.
  - a1369209993 6y ago
    That's not a exception; in fact it's probably the most blatant supporting evidence available for "Inflation is good for [...] anything that's meant to be used.". Computers have been undergoing borderline hyperinflation (factor of two every year-and-a-half or so) for decades, and this is extremely good for anyone who wants to use a computer.
    - ogogmad 6y ago
      You got it the wrong way round. Deflation means when prices are dropping. The price of computers has fallen over time predictably and exponentially, and yet that hasn't stopped people from buying them. The Keynesian argument against deflation is that it disincentivizes people from spending money as they expect prices to drop. This disincentive hasn't prevented the computer industry from being a huge success. The fact that you know that if you wait some time you can get a faster and cheaper computer doesn't prevent you ad infinitum from buying computers.
      - rodiger 6y ago
        Kinda unintuitive, but if you look at processing power as a currency, it is actually undergoing hyperinflation (number of computers + processing power increases every year). Meaning you buy a computer, assuming its value will drop (due to the inflationary nature).
        spurgu 6y ago
        > if you look at processing power as a currency, it is actually undergoing hyperinflation So in relation (for this particular scenario) the USD is undergoing hyperdeflation..? Whatever you call it the psychological effect with computers is the same as with a rising bitcoin price - you get more bang for the buck the longer you hold off on your purchase.
        a1369209993 6y ago
        > So in relation (for this particular scenario) the USD is undergoing hyperdeflation..? Relative to computers/processing power, yes, although you generally wouldn't describe it that way, since USD is (comparatively) stable with respect most other stores of value - it's computers that are changing in value, so it's computers that should be described as undergoing inflation. Relative to (the relevant average of) other stores of value, dollars are undergoing inflation, just more slowly than computers.
        a1369209993 6y ago
DennisP 6y ago
EIP669 was a difficulty bomb delay. The difficulty bomb was never intended to make monetary policy. The point was to keep upgrades from failing to deploy due to node operator complacency. The difficulty bomb forces them to upgrade their code in some way, either to the upgraded version, or to the same old version with a bomb delay. Issuance right now is 2 ETH/block. The white paper just promised 5 ETH/block forever. https://ethereum.org/en/whitepaper/ https://ethereum.org/en/whitepaper/

Entwickler 6y ago

Can you provide evidence of no debate, and reasons on why the soft cap is a bad idea when transactions burn eth anyways and the eth inflation rate is around 4% per year, and slated to drop to 0.5%-2.0% with the transition to ETH 2.0?

whoisninja 6y ago
typical monetary policy issue, if it is easy to change - they will keep changing

rodiger 6y ago

Inflation is good for currencies / anything that's meant to be used.

spurgu 6y ago
One exception to this that pops to mind is computers, which have gradually gotten cheaper. Even though you always get a better one if you wait, it hasn't deterred consumers.
- a1369209993 6y ago
  That's not a exception; in fact it's probably the most blatant supporting evidence available for "Inflation is good for [...] anything that's meant to be used.". Computers have been undergoing borderline hyperinflation (factor of two every year-and-a-half or so) for decades, and this is extremely good for anyone who wants to use a computer.
  - ogogmad 6y ago
    You got it the wrong way round. Deflation means when prices are dropping. The price of computers has fallen over time predictably and exponentially, and yet that hasn't stopped people from buying them. The Keynesian argument against deflation is that it disincentivizes people from spending money as they expect prices to drop. This disincentive hasn't prevented the computer industry from being a huge success. The fact that you know that if you wait some time you can get a faster and cheaper computer doesn't prevent you ad infinitum from buying computers.
    - rodiger 6y ago
      Kinda unintuitive, but if you look at processing power as a currency, it is actually undergoing hyperinflation (number of computers + processing power increases every year). Meaning you buy a computer, assuming its value will drop (due to the inflationary nature).
      - spurgu 6y ago
        > if you look at processing power as a currency, it is actually undergoing hyperinflation So in relation (for this particular scenario) the USD is undergoing hyperdeflation..? Whatever you call it the psychological effect with computers is the same as with a rising bitcoin price - you get more bang for the buck the longer you hold off on your purchase.
        a1369209993 6y ago
        > So in relation (for this particular scenario) the USD is undergoing hyperdeflation..? Relative to computers/processing power, yes, although you generally wouldn't describe it that way, since USD is (comparatively) stable with respect most other stores of value - it's computers that are changing in value, so it's computers that should be described as undergoing inflation. Relative to (the relevant average of) other stores of value, dollars are undergoing inflation, just more slowly than computers.
      - a1369209993 6y ago

DennisP 6y ago

EIP669 was a difficulty bomb delay. The difficulty bomb was never intended to make monetary policy. The point was to keep upgrades from failing to deploy due to node operator complacency. The difficulty bomb forces them to upgrade their code in some way, either to the upgraded version, or to the same old version with a bomb delay. Issuance right now is 2 ETH/block. The white paper just promised 5 ETH/block forever. https://ethereum.org/en/whitepaper/ https://ethereum.org/en/whitepaper/