Cryptocurrency Q&A
Does ETH have infinite supply?
Does ETH have infinite supply?
Giuseppe
Mon Aug 19 2024
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6 answers
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Hello there, I'm curious about a question regarding the cryptocurrency Ether (ETH). Can you please clarify if ETH has an infinite supply? It's a common misconception in the crypto space, and I'd like to have a clear understanding of how its supply is managed. Thanks in advance for your expertise on this matter.
6 answers
KatanaBlade
Wed Aug 21 2024
Ethereum, abbreviated as ETH, is a decentralized platform that enables smart contract functionality and serves as the foundation for numerous decentralized applications. One key aspect of Ethereum's economics is its supply model.
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isabella_doe_socialworker
Wed Aug 21 2024
Unlike Bitcoin, which has a finite supply cap, Ethereum operates with an unlimited supply of ETH. This means that there is no predetermined maximum number of ETH that can be mined or created.
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InfinityRider
Wed Aug 21 2024
However, despite the unlimited supply, Ethereum imposes a fixed annual issuance rate to regulate the influx of new ETH into the market. Specifically, the network is designed to issue 18 million ETH annually.
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Daniela
Wed Aug 21 2024
This annual issuance rate serves as a mechanism to maintain a stable and predictable rate of inflation within the Ethereum ecosystem. It allows developers, miners, and users to plan and operate with a clear understanding of the long-term supply dynamics.
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CryptoAce
Tue Aug 20 2024
The combination of an unlimited supply and a fixed annual issuance rate creates a unique economic environment for Ethereum. While some argue that an unlimited supply could lead to inflation and devaluation, proponents of Ethereum believe that the fixed annual issuance rate mitigates these risks.
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