Ethereum cryptocurrency will become somewhat more scarce after the implementation of the first stage of the update Casper the Friendly Finality Gadget (FFG), which will take place in the summer-autumn of this year and will combine the mechanism of consensus Proof-of-Work and Proof-of-Stake. This is stated in the documentation published yesterday, April 20, containing the specifications of the EIP 1011 update.
As the Trustnodes publication notes, after several months of testing, Ethereum developers approved the parameters of the upcoming update. This will allow Parity and Geth clients to start implementing and testing the Casper FFG, which implies the implementation of the Proof-of-Work (PoW) / Proof-of-Stake (PoS) hybrid consensus mechanism.
As previously reported, with the implementation of Casper FFG will reduce the size of the award PoW miners - from the current 3 ETH to 0.6 ETH, that is, 80%.
"Network security is shifting significantly from the complexity of PoW in favor of the completeness of PoS, and the reward will now receive both validators and miners," — noted in the documentation.
In addition to the PoW miners ' reward for a block of 0.6 ETH, the funds will be distributed to users according to the PoS method according to the following scale:
"Now the expected amount of steaks at a rate of 5% is 10 million ETH. It turns out 500 thousand ETH (about 0.22 ETH per block)", — said the Creator of Ethereum Vitalik Buterin.
Thus, the total reward for PoS-stackers and PoW-miners will be 0.82 ETH per block, which is significantly lower than the current amount of remuneration (3 ETH). This, in turn, will significantly reduce the inflation rate of Ethereum, which will be 2% in annual terms. After the update is implemented, the annual emissions will be 2 million ETH.
The current plan is for two years, the total volume of awards to steneram provided in the amount of 1 million coins Ethereum. This is due to the fact that Ethereum developers plan to completely transfer their product to the PoS mechanism.
Thus, implementing all of this will make Ethereum less inflationary than bitcoin. With an annual volume of 650 thousand BTC, taking into account the current 17 million coins in circulation, the annual inflation rate of the first cryptocurrency is about 4%.
At the same time, in 2020, the network of bitcoin will happen halving of the reward for the block, which will reduce the annual rate of inflation to 2%. However, after the implementation of Casper FFG, the inflation rate of Ethereum will also be insignificant, and the mark of 2% will be reached slightly earlier than the current market leader.
In the future, Ethereum developers will completely get rid of the pow algorithm, leaving only the block reward to the stewards at 0.22 ETH. In this case, the annual inflation rate will be 0.5% and, in fact, will gradually reach zero.
To support PoS nodes will need 1 500 ETH. The role of stewards will be to create a kind of Genesis blocks-the so — called control points. The validator will create a checkpoint every 50 blocks. This, in turn, will ensure the completion of the blockchain, which implies that transactions cannot be returned before the checkpoint.
Theoretically, in PoW mining, the owner of more than 51% of hash power is able to roll back transactions, up to the Genesis block. None of the participants in the" hybrid " ecosystem Ethereum will not be able to return beyond the last point, which indicates a high level of network security.
Apparently, in the Ethereum ecosystem, PoS-pools will gradually appear, which will allow everyone, regardless of the size of the Deposit, to earn their 5%. This rate is comparable to the rate of return on investment in low-risk instruments in the traditional financial market, such as bonds or Bank deposits in advanced economies.
We will remind, several weeks ago the developers of Ethereum rejected the idea of holding hard forks as possible measures to prevent ASIC miners.
Since you know the amount of Ether needed for a node do you know the staking rewards?
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no i don't ((
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dang
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