The founder of Ethereum to audit supply of the digital asset. Ethereum 2.0 might get delayed with the focus shifting to Ethereum’s max supply
Bitcoin and Open Blockchain Author explains the calculation of Ethereum supply
‘What is ETH Supply’- This doesn’t make any sense!
The debate on ‘How much Ethereum is there?’ is outspread in the crypto community. Infact, when asked, Ethereum Community manager had no answers. He responded, ‘F*ck’
“ I can’t believe we never thought about that. We were too busy talking about synchronous cross-chain sharding and layer two zk-rollup plasma state channels.”
Is it the known fact that the max outstanding supply of Ethereum is not predefined like the BTC which is 21 million. However, this issue has been taken round on twitter for quite a long time, and now, the founder has responded to escalate it.
Vitalik Buterin, when asked about the max supply of Ethereum earlier, responded to look into the matter at the earliest. He has also reportedly said that Ethereum 2.0 development would be halted to work on finding the answer to “How much Ethereum are there?”
“Today a new problem appeared before me. I have decided to halt the development of Ethereum 2.0 and shift the focus of Ethereum to my new vision. I find it is more of a technological challenge to count the total supply of ETH than to actually scale this blockchain. This is now my purpose.”
Bitcoin Author on ‘What is ETH Supply’
Amidst the talks on whether Ethereum is ‘Good money’ or not, Bitcoin and Blockchain author Andreas shared his views as to erase the confusion to some extent. With a series of more than 20 tweets, the author tried to explain the working of Ethereum, which could put the case of the outstanding supply of ETH, to rest.
As per Andreas, Ethereum supply which is issued as rewards, only some part of the reward is issued on successful block confirmation. However, the rest of the reward goes to the ‘Uncles’ or the ‘Ommers’. They are nothing but Greedy Heaviest Observed Tree (GHOST) protocol which includes stale blocks with a lower reward.
How is the total supply determined?
Andreas continues to explain the importance of ‘Uncles’ as it processes the block faster, acts as an on-chain mining pool mechanism, enabling the lower hash rate miners to work as a single entity, and reducing the incentives on the empty block.
However, these uncles arrive with a delay from the parent block. More so, they are incorporated on an eventual basis up to 6 blocks after the parent. Therefore, the issuance at any height is not finalized until all uncles are counted. This mechanism could give the crypto community the exact issuance of ETH when the block’s height is specified and all uncles are considered.
Nevertheless, this also has some limitations. Like the Bitcoin mempool, not all the nodes visit all uncles at the same time, as the consensus on uncles is a few blocks behind. Finally, the author says that,
“Your methodology of calculating ETH supply will determine your answer. The exact timing of your question will determine your answer and it will change every 15-30 seconds. Whether you want count burned ETH will determine your answer.”
Vitalik is all in Praise for the author
The founder of Ethereum praised the effort of the author to shed some light on the working concept of Ethereum. He said that this is probably the best argument for the supply gate. He also said that he does not care about the ‘sound money religion’.
“ Probably the best argument I’ve heard for why ‘supplygate’ matters are that if the ETH community didn’t put in the effort to make a convenience function to compute the total supply, that means we don’t care as deeply about the ‘sound money religion’, and you want money,”, tweeted Vitalik
The Ethereum community believes the Ethereum has a very clear monetary policy. The same is presented in the community plan for the total outstanding supply of ETH in Ethereum v2, they claimed.
Bitcoin Proponent Pomp on Ethereum
Anthony Pomploano, Co-founder of Morgan Creek digital, took on twitter and said that Ethereum is not good money as the community cannot figure out the total outstanding supply.
However, the Ethereum community did not approve of his words and also educated him with some facts. However, many believed that Pomp talks very much on Bitcoin and hence does not consider facts on EThereum.
Moreover, some people believed that Pomp should not be followed to giant authentic information on the crypto world, especially on Ethereum.
Do you know that Schiff and Pomp Live Debate on Bitcoin and Gold Was No Less Than Fire !
A programmer at MakerDao, Marc-Andre, found the code that would calculate the total supply. However, the output was close enough to etherscan.io, the designated blockchain explorer for Ethereum.
Also, Vitalik had previously said that several developers have come up with their version of code to determine the outstanding supply of ETH. However, as per the author, the total ETH supply could vary depending on the methods applied to find it. We can however summarize that the ETH community has presented a wide range of arguments that indicates the limited supply of ETH. The working can be considered as one among them, but the exact number of Ethereum that could be mined should be declared as the other digital assets.