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Ethereum launch in review: - Investment Prospectus: https://www.ethereum.org/pdfs/TermsAndConditionsOfTheEthereumGenesisSale.pdf https://www.ethereum.org/pdfs/

Ethereum launch in review: - Investment Prospectus: https://www.ethereum.org/pdfs/TermsAndConditionsOfTheEthereumGenesisSale.pdf https://www.ethereum.org/pdfs/TermsAndConditionsOfTheEthereu... - Premine Part I: Anyone can buy ETH in exchange for BTC for the next 42 days - Premine Part II: On top of Premine Part I, +10% of the total ETH allocated during Premine Part I will be distributed to "early contributors" - Premine Part III: On top of Premine Part I and Premine Part II, +10% of the total ETH allocated during Premine Part I will be distributed to the Ethereum Foundation - The supply of ETH is uncapped and inflationary at a rate of +25% per year - The premine is being conducted by "EthSuisse", a Swiss entity which will be prompty dissolved after the premining period ends. The Ethereum team makes no guarantee that development of Ethereum will continue after the dissolution of "EthSuisse" - Regardless of how many BTCs are raised during the premine period, ~4000 BTC is explicitly reserved to pay for "Expenses incurred prior to and related to Genesis Sale". Translation: they are pocketing the first 4000-5000 BTC > The Ethereum Platform is being developed primarily by a volunteer contributor team - many of whom will be receiving gifts of ETH in acknowledgement of their dedication - and will continue to be developed on a volunteer basis by some developers as well as under a more formalized contracting or employment relationship for other developers. The group of developers and other personnel that is now, or will be, employed by, or contracted with, Ethereum Switzerland GmbH ("EthSuisse") is termed the "Ethereum Team." EthSuisse will be liquidated shortly after creation of genesis block, and EthSuisse anticipates (but does not guarantee) that after it is dissolved the Ethereum Platform will continue to be developed by persons and entities who support Ethereum, including both volunteers and developers who are paid by nonprofit entities interested in supporting the Ethereum Platform.

wmf 12y ago
It's not 25% inflation (of the outstanding money supply) per year; it's a fixed number of ETH per year. Essentially another open-loop deflationary monetary policy.
- imaginenore 12y ago
  That's not deflationary in any sense. The total amount of Ether issued always increases, thus devaluing all the Ether issued earlier. That's why it doesn't make any sense to buy it now, unless you need it now.
  - drcode 12y ago
    > That's why it doesn't make any sense to buy it now, unless you need it now. I think inflation/deflation has very little impact on investment value, only on nominal price on a unit currency. A currency could be wildly inflationary and still a good store of value, if people sell them cheaply because of the expected inflation and it turns out future demand was underestimated. In that case, it would still increase in price just as much as a deflationary currency.
  - wmf 12y ago
    You're using a nonstandard definition of deflation. When the real economy grows faster than the money supply, prices go down, which is deflation. If the money supply is growing at 1% per year or less (which will happen in year N of Ethereum), it's easy for real growth to outstrip it. Alternately, if demand for ETH grows faster than the supply the price of other currencies will fall relative to ETH.

wmf 12y ago

It's not 25% inflation (of the outstanding money supply) per year; it's a fixed number of ETH per year. Essentially another open-loop deflationary monetary policy.

imaginenore 12y ago
That's not deflationary in any sense. The total amount of Ether issued always increases, thus devaluing all the Ether issued earlier. That's why it doesn't make any sense to buy it now, unless you need it now.
- drcode 12y ago
  > That's why it doesn't make any sense to buy it now, unless you need it now. I think inflation/deflation has very little impact on investment value, only on nominal price on a unit currency. A currency could be wildly inflationary and still a good store of value, if people sell them cheaply because of the expected inflation and it turns out future demand was underestimated. In that case, it would still increase in price just as much as a deflationary currency.
- wmf 12y ago
  You're using a nonstandard definition of deflation. When the real economy grows faster than the money supply, prices go down, which is deflation. If the money supply is growing at 1% per year or less (which will happen in year N of Ethereum), it's easy for real growth to outstrip it. Alternately, if demand for ETH grows faster than the supply the price of other currencies will fall relative to ETH.