Does Ethereum have a limited supply?

3 answers

• Dec 16, 2021 · 3 years ago
  Yes, Ethereum does have a limited supply. Unlike Bitcoin, which has a maximum supply of 21 million coins, Ethereum does not have a fixed supply cap. However, there is an annual issuance limit of 18 million Ether, which means that new Ethereum tokens are created at a decreasing rate over time. This helps to control inflation and maintain the value of the cryptocurrency.
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• Dec 16, 2021 · 3 years ago
  No, Ethereum does not have a limited supply. Unlike traditional fiat currencies, Ethereum is not subject to the control of a central bank or government. The supply of Ethereum is determined by the network's consensus algorithm and the decisions made by the Ethereum community. This decentralized nature allows for a more flexible and adaptable monetary system.
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• Dec 16, 2021 · 3 years ago
  Ethereum's supply is not fixed like Bitcoin, but it does have a mechanism in place to control the rate of new token creation. This mechanism is known as the Ethereum Improvement Proposal (EIP) 1559, which aims to reduce the inflation rate of Ethereum by burning a portion of transaction fees. This means that as the network becomes more widely used, the supply of Ethereum will decrease, potentially leading to an increase in its value over time. However, it's important to note that this mechanism is still being implemented and its full impact on the supply of Ethereum is yet to be seen.
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