Ethereum Classic Announces Updates and New Monetary Policy
In its most recent newsletter, Ethereum Classic addressed components of its proposed new monetary policy.
"This [Error Correcting Internet Protocol] (ECIP) proposes a solution to the Ethereum Classic Monetary Policy to adjust, with finality, the current emission schedule implementation of 14.0625ETC per block in perpetuity. The solution proposed introduces a theoretical upper bound on the maximum absolute number of ETC and introduces a method of degraded emission over time. In addition, this ECIP describes the requirements associated with maintaining this emission schedule through a potential change of the network’s consensus algorithm, from its current Ethash based Proof of Work to a possible POS or POW/POS hybrid model.”
ETHNews spoke with Arvicco/BitNovosti, owner of bitnovosti.com, the site where the Ethereum Classic movement began, to give us more insight on this topic:
“Monetary policy is an important missing piece of Ethereum blockchain system. For Ether (ETH), it is currently undefined with unlimited expected inflation and most people in Ethereum community consider it a feature, not a bug. On the contrary, most people in the Ethereum Classic (ETC) community consider it a bug that needs to be corrected. Platform token is a critical part of blockchain system that aligns economic incentives of key stakeholders, users, developers, investors and miners. Its monetization makes everything tick and helps to bootstrap the ecosystem. However, it's been shown time and again in economic history that reliable long-term monetization is impossible without two key characteristics: utility and scarcity.”
In general, the policy proposed (ECIP 1017) can be boiled down to the following:
- 20% reduction every 5M blocks (~ every 2.5 years)
- At block 5M, rewards are equalized for mined “uncled” blocks
- Expected upper bound of supply will be between 205M and 215M ETC, depending on future uncle rates
- Emission schedule resembles the bitcoin model with a later starting date; with adjustments:
- Final number of coins ~10 times BTC amount
- 50% total mined and 3% inflation occur slightly sooner than would a pure bitcoin model
- Tail end of production is a bit longer and wider than bitcoin
This announcement comes after the Ethereum Classic network experienced an abnormally high level of orphaned and detached valid blocks, which are not part of the main chain. Orphaned blocks can occur naturally when two miners produce blocks at the same time, or they can be caused by an attacker, with enough hashing power, attempting to reverse transactions.
According to Ethereum Classic, the causes and remedies of the orphaned block issue are still being investigated. The network states in its newsletter that all versions of Parity and Geth are working normally. “ETC does NOT have a Geth/Parity forking issue. The problems Ethereum experienced last week are unrelated to the ETC chain.”
Arvicco/BitNovosti further commented, “Currently ECIP 1017 is a front-runner in terms of being adopted as Ethereum Classic monetary policy standard. It's not yet implemented in the code, though, and discussion around it is still on-going in order to ensure different perspectives and feedback from the community is incorporated.”
The newsletter also highlights Ethereum Classic’s weekly show on its YouTube channel, Let’s Talk ETC.
“Every Tuesday at 7:30pm EST we will be discussing what's going on in the ETC community and beyond. This week's show (11-29-16) will feature special guests from the ETC mining community. We will be discussing mining as well as other of blockchain centric topics.”
Aside from the weekly show, organizer, and CEO of Nivaura, Dr. Avtar Sehra, will lead an Ethereum Classic event in London on December 13, 2016. The Event will be hosted by one of the leading financial services law firm, Eversheds LLP, at their London Headquarters near St. Paul’s Cathedral. Speakers and panelists from the Bitcoin (BTC) and ETC community are still being confirmed at this time.
The focus of the event will center on activity in the Ethereum Classic community and what the future holds for the network, including discussions regarding the following:
- Updates on what has happened so far in the ETC Ecosystem;
- Planned monetary policy hard fork and why it matters;
- Panel discussion on monetary policy, economics and the future of cryptocurrency.
For more information on the event see Dr. Sehra’s twitter post below: