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May 29, 2024 1 tweets 1 min read Read on X
FAQ: Ethereum issuance reduction

By:
- aelowsson

🔗

Highlights:
- Reducing issuance can lower costs for users and improve overall welfare by eliminating unnecessary expenses.
-A lower issuance can prevent centralization and monopolization, making Ethereum more secure and desirable for development.
-Economic security is not solely dependent on the amount of staked ETH; the value of ETH and its role in the economy are also crucial.
-Different strategies for reducing issuance include tempering issuance, cutting issuance, economic capping, and time–quantity policies.
-Stakers can still benefit from reduced issuance if it leads to a more valuable and secure Ethereum, even if their immediate yield decreases.

ELI5:
This article discusses why Ethereum should reduce the amount of new ETH it creates (issuance). It explains the benefits of reducing issuance, such as lowering costs for users and improving the overall security and value of Ethereum. The article also explores different strategies for reducing issuance and their potential impacts on the Ethereum network.ethresear.ch/t/19675

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