Ethereum Miners Apparently Against Proposal to Reduce Block Rewards by 75%

Ethereum Miners

Ethereum Miners Apparently Against Proposal to Reduce Block Rewards by 75%

A new Ethereum improvement proposal (EIP) has been met with sharp criticism from miners suggesting those behind the proposal are less interested in the network’s security and more focused on investors’ interests.

EIP-2878 proposes that block rewards be reduced by 75%, from 2 ETH per block down to 0.5 ETH. The rationale behind this EIP is to bring Ethereum’s inflation rate closer into line with Bitcoin’s (BTC) and to preserve ETH’s purchasing power.

Proposed on Aug. 11, ConsenSys Managing Director John Lilic, and Ledger’s Global Head of Client Success Jerome de Tychey, it was shared along with an in-depth explanation on the Ethereum Magicians forum where developers and miners alike can discuss its validity.

Miners, specifically those using GPUs, were quick to call out the EIP as the block reward drop was more than double the percentage of the network’s previous reduction, and said a 51% attack would be a possible result.

PegaSys Product Manager Time Beiko believes “this is much too dramatic of a change, given we’ve gone from 5 to 3 (-40%), then 3 to 2 (-33%), now you are going from 2 to 0.5 (-75%).”

“The biggest consideration, in my opinion, should be the security of the network (i.e. how do we ensure the likelihood of 51% attacks remains low, how do we keep a diverse set of miners on the network, etc.).”

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When I came up with Ethereum, my first first thought was, 'Okay, this thing is too good to be true.' As it turned out, the core Ethereum idea was good - fundamentally, completely sound