Ethereum’s Vitalik Buterin Advocates for Better Staking Rewards for New PoS Algorithm Upgrade
Ethereum Co-Founder Proposes Higher Staking Rewards For Upcoming PoS Algorithm.
Multi-talented blockchain developer, writer and co-founder of Ethereum Vitalik Buterin on April 20 proposed a higher staking reward for the upcoming proof-of-stake (Pos) algorithm implementation on the Ethereum blockchain on Github
According to the proposal, 2,097,152 ether per year would be issued when 134,217,728 ether is staked and validating transactions, which will generate 1.56 percent annual return for those that stake.
At present, the current circulating supply of ether is 105,764,762 ETH, which means that this amount of staked ether is a theoretical maximum of sorts.
The Proposal’s Estimation
The proposal has also estimated the annual return for various quantities of validating ether. So, in the real sense, if only 1 million ETH was staked with this configuration, validators would receive an annual return of 18.1%.
The Reddit community has also welcomed the proposal with open arms, with many seeing the rates as more reasonable and realistic than the previous ones.
Prominent Ethereum Researcher Justin Drake estimated that after PoS and the Sharding functionality have been successfully implemented –with 32 million staked-3.2% would be given to the validators as a base return.
This number is equivalent to about 1% of the total supply of ether.
Drake is also of the opinion that the implementation of the Ethereum improvement proposal 1599 would automatically mean that a portion of the transactions fees would be burnt.
So, he projects that with 1000 ETH spent on gas per shard each year, the inflation would be equivalent to about .5%.
The Future of Ethereum
In related news, Bitcoin Exchange Guide on April 12 reported that Ethereum Co-founder Vitalik Buterin replied to tweets from Twitter users who desperately want to know what would happen to ETH if Hard Fork is ordered.
Issues Came To A Boiling Point When Bitcoin Propances.
The first circumstance was concerning if the United States government decided to order a hard fork, in which the users impacted by the parity bug would have access to their coins once again.
The other circumstance bothered on what would happen if Buterin decided not to follow through with the order.
The question stirred the crypto community, and quite a lot of people started asking many questions, and when Buterin finally got wind of the whole situation, he answered that he had addressed the questions before, and he followed suit by posting a link to a video of TechCrunch 2018.
In the video, the Crypto big whale said:
“Decentralization is the face of Threats.’’ It discusses a hypothetical situation in which a third party aimed a gun at his head, demanding a hard fork patch to be implemented. In this scenario, he admitted that he would ultimately write the patch, doing ‘’everything they say’’.
He pointed out that there were few hands raised when he asked if there were people willing to download and install the new software to switch, adding, ‘’This is called Decentralization’’.