Awards for PoW-miners in the Ethereum network will be reduced by 80%

Awards for PoW-miners in the Ethereum network will be reduced by 80%

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The developers of Ethereum have published the specifications of the update they are preparing for the Friendly Finality Gadget Casper (FFG Casper) update, which will allow the network to switch to the hybrid mechanism of the Proof-of-Work (PoW)/Proof-of-Stake (PoS) consensus.

In the last update, one of the most disturbing parameter miners is indicated: the reward for the block added to the blockchain system using the Proof-of-Work mechanism will be reduced from 3 ETH to 0.6 ETH.

“In the submitted specifications of the first phase of Casper described the transition from a pure Proof-of-Work to a hybrid PoW/PoS. In this scheme, all the mechanics of PoW are preserved, despite the reduced reward for the block (0.6 ETH), and the PoS mechanism is added,” the developers write.

It is worth noting that the award for PoS-miners in the document is not specified. One might assume that the remaining 2.4 ETH will be redistributed to their advantage, but given the relative cheapness of this method, such an option looks unlikely.

Earlier, Vitalik Buterin stated that with the integration of shading and Casper, the rewards for the block could be significantly reduced.

“At present, the expected profitability of the stacking of 10 million ETH at a rate of 5% is 500,000 ETH per year or ~ 0.22 ETH per block,” he wrote.

Currently, FFG Casper is in development and testing mode. Some suggest that in the main blockchain system technology will not be launched until the end of 2018 – the first quarter of 2019, but the threat of the emergence of ASIC-miners for Ethereum may force developers to move to more decisive measures.

The weekly Ethereum developers meeting is scheduled for April 6. Probably, additional details of the upcoming update can be presented on it.

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