Ethereum Supply Likely to Grow 25% as Block Times Slashed

The Ethereum supply is expected to grow by 25% approximately, given a similar reduction in block times following two hard fork updates.

The Ehtereum mainnet has undergone the Muir Glacier hard fork update only days ago, which came three weeks after it completed Istanbul update.

The update aimed to delay a difficulty bomb for another four million blocks, or about 611 days, and was due to a miscalculation when planning Istanbul.

Following the Muir Glacier update, each block is completed in about 12.69 seconds, compared to around 17 seconds earlier. Furthermore, the time bomb delay increased the Ethereum miner’s reward, with the number of coins jumping to 12,000 Eth. from 10,000 Eth.

Meanwhile, analysts forecast the delay of the time bomb to push inflation rate higher towards 5% a year, which may see a further increase during the summer of 2020 once hybrid Proof of Stake (PoS) launches, at which point the Proof of Work (PoW) chain will likely be discarded.

However, the inflation rate may be reduced to 0.22% from 5%, upon the switch from PoW to PoS, as developers have a program to launch the full PoS before the time bomb will again happen.   

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