Ethereum New Hard Fork on 1 Jan 2020, That Will Increase the ETH Inflation by 20%
Ethereum foundations core developers confirm that the new hard fork scheduled on 1 January 2020 will increase the inflation rate of ETH. The increase in the inflation rate is expected to decrease the ETH more.
Due to the delay in the Ethereum 2.0 launch, there is a lot of increase in the difficulty of the network. The increasing difficulty will make the network runs cold due to this the hard fork is necessary to execute.
The daily total block reward is fallen to 10,000 ETH per day. Usually, the normal daily total block reward would be 12,000-13,000 ETH per day.
Udi Wertheimer a bitcoin developer criticize the ETH devs for this and highlight the state of the network. This is shocking that the core developers of ETH simply forgot or miscalculated the schedule.
Ethereum Team Lead Péter Szilágyi tweeted:
“Nobody forgot the ice age. Someone ran some rough calculations and figured there’s ample time. The calculations were wrong. People had better things to do than double-check. The moment someone did and realized the ice age is here, we acted as fast as we could.”
Iuri Matis, an ETH Programmer replied to Udi Wertheimer:
You make it sound like the fork increases the inflation like that’s the goal when in reality it’s just putting the block times back to normal. Yes, technically faster blocks (when back to normal) mean higher inflation but that’s not the goal of the fork.
The increase in the supply will dump the price below critical support zones. This network will dump the ETH price to $100 or lower. There is an expected 20% increase in the inflation rate means there is a big sell-off coming.
Ether has a lot of network upgrades on the way in 2020, the risk for the ETH 2.0 launch will increase.
