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Breaking News / Crypto.IQ / Ethereum

Hard Cap Proposal By Buterin For Ethereum Not An April Fool’s Joke

The 1st of April in 2018 saw plenty of announcements being made by prominent members of the blockchain world as a joke. CoinMarketCap jokingly made the ranking system for tokens work with them being valued in comparison to “Lambos” while someone of the likes of Vitalik Buterin even made the announcement that Ethereum is now launching a new Ethereum stablecoin called the World Trade Francs. According to the announcement, the WTF stablecoin is going to be based on the next generation blockchain technology which will allow for users to transact and hold the stablecoin with ease.

The Hard Cap Announcement

As far as the April Fool’s jokes go, the WTF stablecoin sure was a good one but one of the announcements made by Vitalik Buterin, namely the one about his plan to propose a hard cap on the total number of Ethereum that will exist, is now being looked at seriously.

On the 1st of April, Vitalik Buterin published a proposal that was aimed at improving Ethereum.

According to the details of Vitalik Buterin’s proposal to improve Ethereum, he feels that in order to make sure that the decentralized currency can actually manage to retain sustainability, he feels that there should be a hard cap on the total number of Ether tokens that will ever come into existence. The reason for that could be the fact that issuance of new Ether units to miners using proof of work is not particularly effective at making the distribution of the cryptocurrency being of an equal nature for everyone involved.

The Specifics Of Vitalik’s Proposal

The announcement has essentially published an outline for a proposal to max out the total number of Ether tokens that will ever come into existence at a total of 120,204,432 ETH. That is basically twice the amount of Ether which was sold when the ICO was conducted for Ethereum back in 2014 when it was founded by Vitalik Buterin and co.

This will mean that the reward distribution system for everything from mining rewards to staking interests or any more rewards which will be there on the Ethereum blockchain network in the future will change into “reward units”.

Based on the proposed formula for calculating the reward units, the total supply of Ethereum will see an exponential rise to the point where it hits the hard cap set at 120 million Ether while the reward units will exponentially go towards zero. Based on the proof of work scenario, the rewards within the Ethereum blockchain network will be halved after approximately every 740 days.

It’s Still A Joke – It’s Just The Punch Line Was Unexpected

With the announcement being made, many people were quick to be dismissive of the proposal as an April Fool’s Joke. Vitalik took to Twitter to announce that the proposal was genuine but there was indeed a joke involved. The point was to see everyone argue about whether or not this proposal was a joke. The proposal is real and could help shape the future of the Ethereum blockchain network’s economic model.

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