Re:Ethereum 2.0 launches
by tromp on Tuesday December 01, 2020 @11:28AM
(#25266617)
PoW can work fine with the inflation rate going to zero, and without relying on transaction fees.
All it needs is a constant (or an eventually constant) block reward.
An effective zero inflation is already achieved when the new emission merely balances the amount of coins getting lost.
[ Parent
| on HN ]
Sorry but this is a ridiculously stupid reasoning. You're relying on coins being lost (unknown amount) to counteract rewards and closing there's no inflation due to that.
This also assumes that miners will be holding enough bitcoin that price increases alone will not only pay for their operations but also cover a reasonable interest in their holdings. It's not logical to think this will happen. And even of it does, you'll be left with only a handful of miners.
Re:Ethereum 2.0 launches
by konschubert on Tuesday December 01, 2020 @12:43PM
(#25267566)
I think your second paragraph is wrong, since the parent suggests that a block reward will still be paid through newly minted coins.
Re:Ethereum 2.0 launches
by konschubert on Tuesday December 01, 2020 @11:37AM
(#25266736)
So the amount of value getting lost must be equal or greater the electricity bill for mining.
I see your point but doesn’t sound like a great pitch.