He said the current testnet participation sees around 100,000 ETH issued a year. The current Ethereum network has about 4.7 million ETH issued annually. Eth 2.0 issuance meanwhile is expected to be somewhere between 100,000 and 2 million a year, with the most likely scenario being that it will be much less than 2 million.
Ethereum co-founder Vitalik Buterin said that issuance on the Ethereum 2.0 upgrade will be drastically reduced in a podcast interview with POV Crypto called “Internet Money”. Discussing some of the differences between Bitcoin and Ethereum (ETH), Buterin explained why the team chose Proof of Stake as the upgraded consensus mechanism:
“One of the reasons why we’re doing Proof of Stake is because we want to greatly reduce the issuance. So in the specs for ETH 2.0 I think we have put out a calculation that the theoretical maximum issuance would be something like 2 million a year if literally everyone participates.”
Burning to reduce supply
Buterin also mentioned that the total circulating supply could see a net reduction at times of high transaction volumes due to a portion of each fee being burnt. “There is this base fee parameter which the protocol charges” he said, explaining that when you send a transaction the transaction fee is broken into two parts – the first goes to the miner as a ‘tip’, while the other portion simply gets burnt.
Block size is the new variable
Another key upgrade to the Ethereum network is the adjustment of block sizes rather than fees in response to network activity. “Instead of having volatility in transaction fees, we have volatility in block size”, he said.
This will help reduce some of the issues users currently face such as difficulty in predicting a transaction’s optimal fee amount and excessive processing times.
Support for ETH 2.0 continues to grow
Support continues to grow for the testnet with news this week that a major mining pool run by OKEx will join the ETH 2.0 testnet Topaz as a validator. The testnet currently has 24,000 active validators and reached more than 20,000 validators in four days.
Enterprise Ethereum Alliance’s Reward Token System Backed by Microsoft, Intel
Microsoft and Intel are backing a new system of reward tokens created by the Enterprise Ethereum Alliance (EEA).
EEA creates new reward token system
The EEA, which sets standards for Ethereum-based blockchain applications in business, shared the developments in a statement with Cointelegraph on Oct. 7.
The organization said that it has created a new system of reward tokens that has the support of both software giants.
The EEA is a blockchain consortium with over 450 enterprise business members such as Microsoft, JPMorgan Chase, Santander, Accenture, ING, Intel and Cisco. Its newly created token aims to incentivize and reward companies who are actively participating in a consortium.
Intel’s blockchain program manager Michael Reed told Coindesk that there are three types of tokens – a reward token, a reputation token and a penalty token – adding:
“It really can be applied to any consortium to incentivize teamwork. The example we are using is a software development consortium like EEA, where we are trying to motivate activities like editing and contributing to specifications, developing and adding code. Then, of course, you could apply penalties for negatives, such as lack of contribution, lack of review, missing deadlines and so on.”
Cointelegraph has previously reported on the use of tokens to align and reward companies and individuals for their efforts. The Austrian capital of Vienna was reported to be developing a blockchain-based token as a part of a local incentive program in early 2019.
The so-called Vienna token would be granted in return for providing feedback about the city, in an application designed to pay for parking or for rewarding citizens for riding their bikes. The tokens might later be exchanged for something valuable, such as theater tickets.
EEA’s published use cases for telecommunications
In August, the EEA published a set of use cases for blockchain technology in telecommunications.
The list provided information on how blockchain technology could streamline business transactions and internal operations in the telecommunications industry.
Use cases included blockchain-based telecom call roaming user authentication, blockchain-based telecom call roaming reconciliation, and data privacy and monetization.