Buterin think about limiting the supply of Ethereum

Buterin think about limiting the supply of Ethereum

The Creator of Ethereum can take some points to work its system of the Bitcoin and other cryptocurrency systems. First Buterin think about the fact, should not limit the supply of air.

 

There is a hard limit of 21 million coins, Bitcoin, the first successful cryptocurrency, which helps maintain its value. Buterin not planning this level of capitalisation as Bitcoin does, but is considering the idea of introducing fees for applications built on Ethereum. The Commission will burn, tokens of the ether, and thereby positively affect its growth.

 

"If tokens are to burn, then there will be an economic model, according to which the token value will be the net present value of all future combustions" he said. Otherwise, "it [Ethereum] just a currency that goes up and down. The entire financial system is similar to a shamanic economy and the price of the token actually will not eat anything, " added Butorin.

 

 

He also said that we need to move forward to improve the value of the coin. "There are several options for further development of the event, however, we consider the introduction of certain sinks that will destroy tokens, Ethereum," said he. "With these sinks having the form of a fee, the tokens will actually be destroyed".

 

Buterin considering another option to limit the supply of Ethereum – lock a certain number of coins in circulation. According to him Ethereum will switch to the new method of transaction verification in its network. This will be the system of Proof-of-Stake, which will reward users for making a broadcast on Deposit for a certain amount of time. The more coins users will be put off, the greater the reward for the test network.

 

Vitalik said that go to the PoS system Ethereum may, by the end of this year.

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