Vitalik is an extraordinary talent and mind in the world of crypto. A wunderkind in the space and managing the worlds second largest cryptocurrency and fastest developing blockchain; he even takes time out of his weekend to pen April Fool’s white papers.
But was his ‘Ethereum Cap’ proposal purely a joke. As the weekend turned to Monday it seems to be a hot topic of discussion. Here are some of the details as they developed:
“In a new ethereum improvement proposal (EIP) authored April 1, the cryptocurrency’s creator issued his latest thoughts on the matter, posing to developers and software users that the maximum supply of ether, the network’s cryptocurrency, be set at 120,204,432, “or exactly 2x the amount of ether” sold in its original sale in 2014 in a forthcoming software change.
As such, the comments mark one of the first times Buterin has directly addressed the platform’s monetary policy, a subject whose lack of clarity has drawn critics, including from investors who have publicly doubted its potential as an investment opportunity.
While no more than 21 million bitcoins will ever be created as per the rules of the bitcoin protocol, ether has long had a more open-ended policy. Per the terms of the original issuance, up to 18 million ether is allowed to be issued every year, though it has long been said the terms would change following a milestone change to the protocol’s design.”
We all understand the value of the finite number of Bitcoin to hit the market in a specified time period. But what about the same concept for Ethereum? Would it change the dynamic of the project, the use case, the mission of $ETH?
That is for Vitalik and company to figure out. Given what they have created (and this may be blasphemy, but a case could be made that it is more important, longer term, than Bitcoin), they’ve earned the right to make a few pivots along the way.