Block Reward Reduction to 0.5 ETH (DRAFT) #2878
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@JLilic could you please add a |
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| ## Simple Summary | ||
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| This EIP will reduce the block reward paid to proof-of-work validators. Reducing the block reward will maintain the status quo of periodic community-activated block reward reductions. |
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Please use one space after periods.
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Is one space a standard for EIP formatting? Or just a personal preference?
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This is standard EIP formatting.
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Thanks. We will go through and make sure there is one space after periods.
| This EIP will reduce the block reward paid to proof-of-work validators. Reducing the block reward will maintain the status quo of periodic community-activated block reward reductions. | ||
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| ## Abstract | ||
| Of the top 4 Proof-of-Work blockchains, Ethereum pays the highest inflation rate for block validation. Blockchains both larger, and smaller than Ethereum pay lower rates without any adverse effects. Over-paying for block validators is an inefficiency that negatively affects all ETH holders, as it unnecessarily inflates the montary base and reduces the purchasing power of all Ether holders. This EIP will reduce the block reward to bring inflation in-line with Bitcoin, which is the largest cryptocurrency by market cap. Block rewards will thus be adjusted to a base of 0.5ETH, uncle and nephew rewards will be adjusted accordingly. |
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I think block validation is wrong term here, since nodes are not paid for validating.
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We are not referencing or making any suggestion that nodes are paid for validating. Nodes verify blocks, but mining nodes validate blocks. Can you elaborate further as to what language you would like to see here, and why? Block validation is done by miners, or, more specifically, pool operators running a full node, or non-pool small miners who run a full node. We make reference to "block validation" as it encompasses all various actors who may be validating through pooled or non-pooled mining.
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Verify and validate are isomorphic. I believe the correct terminology here is s/block validators/miners. "Mining" has been colloquially used to refer to all duties of a miner (including block validation). Block validation, on its own, is really just a subset of a miner's duty. If the miner isn't actively searching PoW solutions (e.g. simply acting as a "block validator"), it will never be paid and therefore can never be overpaid.
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| This EIP will reduce the block reward paid to proof-of-work validators. Reducing the block reward will maintain the status quo of periodic community-activated block reward reductions. | ||
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| ## Abstract |
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IMO, this is too sensational and should focus on the technical issue--over-paying for security.
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Can you be more specific? We state that the goal is to stop over-paying for security, with only one reference to other blockchains. Do you suggest not justifying or explaining why over-paying is bad in the abstract?
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EIP abstracts are generally summaries of the technical changes an EIP is proposing, with minimal motivation / rationale, since there are separate sections for that information.
| A block reward that is too high is inefficient and negatively impacts the ecosystem economically. There is prior precedent for reducing the block reward; it has been done twice in the past in tandem with the diffusion of prior difficulty bombs. The most recent diffusion, Muir Glacier, did not include a block reward reduction and thus broke the prior status-quo. This EIP will revive the previous status-quo of periodical block reward reductions based on economic conditions. With the upcoming release of ETH2.0 Phase 0 staking, inflationary pressures on Ethereum will be further increased. Reducing the block reward prior to ETH2.0 Phase 0 staking will assist in alleviating negative inflationary effects. | ||
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| ## Specification | ||
| Parameters in the source code that define the block reward will be adjusted accordingly. |
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This should specify what the block reward will be and any other changes this EIP requires.
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It also needs to specify what constants are changing, and what they are changing too.
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All previous EIPs that lowered the block reward, did not specify which constants are changing, since the change is so trivial. (only one constant is changed). Would you like us to change this status quo?
If so, we will make a reference as following for example:
consensus.go should be updated on line 45:
NewBlockReward = big.NewInt(5e+17) // Block reward in wei for successfully mining a block upward from the fork that will include this EIP
Please advise if this is sufficient, and if not please be specific as to what other changes to what files you would like to see.
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Got it. We will make a similar change in that case.
Co-authored-by: lightclient <14004106+lightclient@users.noreply.github.com>
Co-authored-by: lightclient <14004106+lightclient@users.noreply.github.com>
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Reminder: Use the discussion-to URL if you want to discuss the merits of the EIP and whether or not it is a good idea to include it in a blockchain. PR discussion should be constrained to the structure of the EIP and its technical validity. (TIL: If you delete the root comment on a PR, it deletes all of the comments that come after it and there is no undo button) |
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There has been no activity on this pull request for two months. It will be closed in a week if no further activity occurs. If you would like to move this EIP forward, please respond to any outstanding feedback or add a comment indicating that you have addressed all required feedback and are ready for a review. |
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This pull request was closed due to inactivity. If you are still pursuing it, feel free to reopen it and respond to any feedback or request a review in a comment. |
This EIP proposes a block reward reduction. If accepted, this would be the 3rd time Ethereum has undergone a block reward reduction, and will reduce the block reward to 0.5 ETH