Cryptocurrency Q&A
Does Ethereum have max supply built into the protocol?
Does Ethereum have max supply built into the protocol?
GangnamGlamour
Mon Jul 01 2024
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8 answers
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I'm curious to know if Ethereum, one of the leading cryptocurrencies, has a maximum supply limit hardcoded into its underlying protocol. As we've seen with other cryptocurrencies like Bitcoin, having a predefined maximum supply can greatly influence market sentiment and price movements. So, does Ethereum have a similar cap on the total number of tokens that can be created, or is it designed to have a more flexible supply model? Understanding this fundamental aspect of Ethereum's economics is crucial for investors and enthusiasts alike.
8 answers
DigitalDukedom
Wed Jul 03 2024
EIP-1559 introduces a mechanism that burns a portion of the transaction fees paid on the Ethereum network, effectively reducing the overall supply of ETH.
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Bianca
Wed Jul 03 2024
However, the issuance of new ETH coins is limited. Each day, a set amount of ETH is released into circulation.
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Caterina
Wed Jul 03 2024
Ethereum, a leading cryptocurrency, does not possess a predefined maximum supply.
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Isabella
Wed Jul 03 2024
This controlled issuance helps maintain the stability and integrity of the Ethereum network.
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Andrea
Wed Jul 03 2024
In contrast to some other digital assets, Ethereum's supply is not capped at a specific number.
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