I'm wondering why Ethereum, or ETH, has an unlimited supply. Unlike some other cryptocurrencies that have a fixed supply, it seems like there's no cap on the amount of ETH that can be created. I'd like to understand the reason behind this design choice.
Ethereum's native currency, ether, possesses a unique characteristic in that its supply is unlimited.
Was this helpful?
354
43
LuciaMon Jan 06 2025
With the creation of each new block on the Ethereum blockchain, additional ETH is generated and added to the circulating supply.
Was this helpful?
189
76
CryptoQueenBeeMon Jan 06 2025
Simultaneously, a portion of the existing ETH in circulation is burned or removed from the supply with each transaction that takes place on the network.
Was this helpful?
109
35
HanRiverVisionMon Jan 06 2025
This dual process of creation and burning results in a fluctuating supply of ether over time.
Was this helpful?
111
75
SumoPowerfulSun Jan 05 2025
In contrast to Ethereum's dynamic supply, Bitcoin's supply is rigidly fixed at a maximum of 21 million coins.