Decentralized APPs or DAPPS powered by the smart-contracts on the Ethereum blockchain are considered the hottest topic of 2018. The month of April started with a funny-proposal, or at least that's what many crypto developers thought because of the submission date which was 1st of April. As it turns out, creator of the Ethereum blockchain was far from joking when he proposed to hard cap Ether supply. Let's take a closer look at the proposal and communities reaction on the matter.
Vitalik Buterin Suggest a 120,204,432 ETH Hard Cap
Ethereum community thought that Vitalik might be joking when he proposed hard capping Ether at 120 million units at the beginning of this month, but turns out that he was serious. The main problem comes from the fact how proof-of-work rewards distribution is not equally fair to all of the network participators and thus threatens networks future sustainability with infinite units in circulation. Some of the developers have stated that this seems like an attempt to save tanking of Ether. Asking Buterin to specify why he didn't launch Ethereum blockchain with a fixed amount of units since the inception. Mr. Buterin also brings out an issue that without having a fixed cap, any of the ERC20 tokens which were generated on the Ethereum blockchain could end up surpassing Ether in market capitalization.
Blockchains With Fixed Caps Have Higher People Support
Another point which Vitalik brings up is that people seem to support fixed supply coins more. Currently, new developers have a small incentive for developing Ethereum blockchain which he thinks could be improved with the introduction of a hard cap. When it comes to investing into crypto then in the early day's everybody was focused on whether the core developers will deliver and make the project happen. Whereas now it has shifted to sounds like a good idea, let me get some of this! According to the original post which could be found here, the monetary policy of Ethereum is not going to be decided until 120 million units issued. New cap might be suggested at that time.
Unexpected Plot Twist With Proposal Submission Date
Apparently, Vitalik Buterin has been thinking about this for a while but he had cleverly waited until the 1st of April to submit his proposal with a plot twist in mind. He attempted to perform a social-experiment whether the Ethereum community will start arguing about this being a joke or not. Seems like he achieved his goal and more with all of the developers coming out of the woodworks to give their opinion on the matter. We will be following Ethereum development in detail and bring you future news as we learn them!