Why ETC over ETH part 2 of 2

A Tale of Two Ethereums

Protocol Economics
Recognizing the need for a robust economic framework that balances the long-term interests of investors, developers, and business operators alike, key stakeholders in the Ethereum Classic community announced their commitment to implement a new monetary model on March 1st, 2017.

Similar to Bitcoin, the new policy was built on the fundamental economic principle that the value of an asset is a function of its utility and its scarcity. As such, it establishes a hard cap on the total ETC issuance. The current miner reward of 5 ETC per block will be reduced by 20% at block number 5,million, and another 20% every 5 million blocks thereafter. A block of transactions is confirmed on Ethereum Classic about every 15 seconds. Due to slight variations in the block reward rate, it is
anticipated that the total supply of ETC will reach 210 million and will never exceed 230 million.

It should be noted that as of March 2nd, 2017, approximately 3.3 million blocks have been mined, setting the total ETC outstanding at 89.3 million, and the overall market capitalization at $120.9 million.

I believe that the successful execution of these key milestones solidifies a sound economic framework that supports long-term investment in ETC.

On the contrary, Ethereum does not incorporate a cap on the overall supply of ETH. To highlight this difference, below I compare the estimated supply and inflation rates for ETC and ETH based on their existing emission models. While there is no guarantee that the ETH supply model will remain the same in the future, estimates purport that in 30 years there could be twice as many ETH as ETC outstanding. As a result, ETH would need to generate a substantially higher rate of return to justify
a valuation at parity with ETC.

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