According to press sources, a survey revealed that 72% of the participants wanted a reduction to 1 ETH per block
In the last meeting carried out by Core Devs Calls of Ethereum, 14 developers of the platform have decided to apply the proposal to reduce the amount of cryptocurrencies per block for the next update, called Constantinopla.
Data published by the press of Ethereum indicate that the reduction, approved by the majority of developers, will drop from 3 ETH to only 2 ETH per block and will be applied at the bifurcation next October.
The agreement consists of adding a new support code at the time of the update to add the reduction, explained the creator of the proposal, Afri Schoedon, who also added that the decision was made by the community, taking into account the opinions of users and miners.
In a survey discussed in a previous Core Devs Calls, 72% of the participants wanted a reduction to 1 ETH per block, a decision that, according to those involved, promotes the value of the cryptocurrency in the market; in this way, the 33% reduction of the issuance of new currencies can have a direct effect in reducing the inflation of the cryptoassets. However, it is presumed that their value did not decrease further to maintain the interest of the mining groups and prevent their migration to other platforms.
Topic of discussion
Danny Ruan, developer of the Ethereum Foundation, added that the updates are internal decisions that must be applied gradually until an application of the Participation Test is achieved, which allows a lower energy demand and substantially reduces the risk of an attack to a 51% in the network.
Developers keep in their agenda to discuss the application of a new mining algorithm, which would limit the conformation activities in the Ethereum network. The project is based on applying a new algorithm called ProgPoW, in order to level the mining and stop using the better known PoW (Proof of Work).
Positive and negative effects
The currency may achieve an increase in its valuation, and the reduction of issuance of these digital currencies could broaden the path for Ethereum to have a maximum limit on the supply of its cryptocurrency. On the other hand, even when the reward diminishes and directly affects the miners, the delay of the difficulty pump will weigh this negative effect and the mining on the platform will continue to be attractive.
A negative factor of this next application is that the decision was taken by a small group of the total number of developers, in addition to being seen as a form of centralization that could negatively affect the ecosystem of the network, generating a decrease in the amount of investors, which includes projects, miners and other participants.
Time will reveal in figures if the implementation of this reduction was the best for the revaluation of this outstanding cryptocurrency, recovering from the fall in its price from January of this year to date.