, 10 tweets, 7 min read Read on Twitter
#Ethereum is about to undergo the #Thirdening - a reduction in issuance of new $ETH to miners from 3 ETH/block to 2 ETH/block, or a reduction of 33%. It will happen at block 7,080,000 as part of the Constantinople hard fork, which is estimated to be January 16th.
That's a bit like the US Federal Reserve saying, "we're about to reduce the number of new dollars we print next year by 33%." This is one step along the way to #Ethereum's eventual plan to have <1% annual issuance, as Proof of Stake and Serenity roll out. #Thirdening
When an asset's supply goes down (fewer miners selling newly-mined $ETH), assuming demand is the same (or higher), prices trend up. This is obvious when looking at $BTC price mapped against the #halvening, a similar event in $BTC where block reward halves, next one is May 2020.
As we move towards Proof of Stake, these issuances get sub 1% (likely much less, given the number of stakers). Check out @ethhub_io's and @econoar's analysis here (also shoutout to them for the image in my first tweet): docs.ethhub.io/ethereum-basic…
.@econoar also took the time to put together a great spreadsheet detailing Proof of Stake issuance here
On the issue of supply/demand, it's also notable that an increasing amount of $ETH is currently locked in #DeFi (decentralized finance) applications. @JohnTodaro1 of @TradeBlock shows here that demand will likely completely outstrip supply shortly
In fact, a few weeks ago, about 1% of all $ETH was locked in the @MakerDAO smart contract. ccn.com/nearly-1-of-th…
That number is now closer to 2%. At the time of writing of the @CryptoCoinsNews piece, 967,507.91 $ETH were locked up. The number is now nearly double that, which you can verify for yourself here etherscan.io/token/0xf53ad2…
I’m excited to see how 2019 unfolds for #Ethereum with the changes in Constantinople and beyond. Here’s some deeper info on the fork. media.consensys.net/the-constantin…
In sum, the #Thirdening will be an interesting opportunity to see how Ethereum’s long-term plan to reduce inflation plays out a market with a lot more stakeholders than previous years. Here’s some deeper info on the thirdening. media.consensys.net/the-thirdening…
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