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How will the merge affect the total supply of Ethereum?

avatarJameelDec 15, 2021 · 3 years ago3 answers

With the upcoming merge of Ethereum's consensus mechanism from Proof of Work (PoW) to Proof of Stake (PoS), how will this transition impact the total supply of Ethereum?

How will the merge affect the total supply of Ethereum?

3 answers

  • avatarDec 15, 2021 · 3 years ago
    The merge from PoW to PoS will not directly affect the total supply of Ethereum. The total supply of Ethereum is determined by the initial distribution and the rate of issuance through mining rewards. The merge will primarily impact the consensus mechanism and the way new blocks are created and validated. However, it is worth noting that the merge may indirectly affect the total supply in the long term, as the shift to PoS may lead to changes in the issuance rate and the overall network dynamics.
  • avatarDec 15, 2021 · 3 years ago
    The merge is not expected to have a significant impact on the total supply of Ethereum. The total supply is determined by the Ethereum protocol and is not directly influenced by the consensus mechanism. The merge will primarily affect the way transactions are validated and the security of the network. It is important to note that the total supply of Ethereum is capped at 18 million ETH per year, and this limit will not be affected by the merge.
  • avatarDec 15, 2021 · 3 years ago
    The merge from PoW to PoS is an important step in Ethereum's development and will bring several benefits, but it will not directly affect the total supply of Ethereum. The total supply is determined by the Ethereum protocol and the issuance rate, which is currently set at a fixed amount per block. The merge will primarily impact the energy efficiency and scalability of the network, but it will not change the total supply of Ethereum.