ETH Devs Postpone Difficulty Bomb, Mining Rewards Reduced
The developers of Ethereum conducted their scheduled YouTube meeting on Friday, 31st of August, in which they made the announcement that they plan to postpone the expected increase in mining difficulty by including the coding necessary to shift into their expected Constantinople hard fork.
Among the foundation’s key goals involves implementing a Proof of Stake algorithm in place of the existing Proof of Work strategy. In order for this adoption to take place successfully, specialists developed a strategy termed the Difficulty Bomb ultimately making the processing of blocks increasingly more difficult. To allow for a smoother shift, the Constantinople plan was created to facilitate the process of switching between a PoW algorithm to a PoS a much more user friendly experience.
Three Possible Solutions
Earlier this month, ETH devs suggested three situations in which they believe the Difficulty Bomb could affect the overall maintenance and possible reduction of miner rewards. In the case of a scenario labeled EIP-858, ETH rewards could be reduced to only one ETH for every block produced. For the second possible outcome, EIP-1234, developers explained that rewards would be reduced to two ETH for every block mined. The final scenario labeled, EIP-1295, offers a larger reward of three ETH however would have a greater effect on factors involved in the process such as the Proof of Work structure.
A Strategy for Ether’s Success
According to a post on GitHub, the Ethereum development team opted for the EIP-1234 solution, as it provides a larger reward whilst keeping all additional factors intact. The team also suggested delaying the shift for an additional year, anticipating that towards 2019's end, the chain is expected to resume at a thirty second block timeframe. This would also minimize mining rewards as the Constantinople fork is implemented.
Currently ETH tokens are valued at $283 which is a dip of 0.48% with an overall increase of 1.39% throughout the past week. In addition, the CBOE has officially reported their plan to launch ETH futures before 2019.