Recall that in September 2022, Etherium switched to a new consensus algorithm Proof-of-Stake (PoS), due to which the place of miners in the cryptocurrency network was taken by validators. Almost a month ago, they received the long-awaited ability to withdraw funds from the Ether deposit smart contract, where tokens were sent to acquire validator roles. Consequently, blockchain development is proceeding apace.

Since then, the total supply of Ethers has fallen by 255,000 coins due to cryptocurrency burning as commissions. Which means that Etherium is a deflationary cryptocurrency, the total number of which has been dropping over time.

That said, if Etherium were to continue to run on the Proof-of-Work consensus algorithm at a higher issuance rate, the number of ETH in circulation would increase by 2.63 million coins over this time frame.

It is also worth noting that there are 20.92 million ETHs in stacking today. This is a record figure, which also speaks to the security of this blockchain.

Despite all the progress, Buterin urges caution in choosing blockchain scenarios.

What will happen to Etherium in the future

Buterin believes that Etherium needs to remain minimalist about how the blockchain works. That said, over the years ETH has had many interesting suggestions in its fan community on how to use the project’s resources. Here is Vitalik’s pertinent rejoinder to that, cited by Cointelegraph.

– Ultimatum Oracle – a suggestion in which users can vote on which facts are true by sending ETH;

– Restacking – a feature set that allows investors to directly use their stacking funds in other protocols;

– Rollback of second-tier blockchain projects using first-tier blockchain resources.

Vitalik admits that such proposals are interesting in their own right and are published by members of the community in good faith. However, integrating them into Etherium could jeopardise the altcoin’s consensus mechanism, posing a huge risk to the cryptocurrency’s millions of users. He continues.

There is a natural inclination to expand the blockchain core with more and more functionality because it has the largest economic weight and the largest community. But each such expansion makes the core itself more fragile.

In other words, the Etherium network must perform only its core functions.

We must maintain the minimalism of the network, support restacking options that do not look like slippery slopes towards expanding the consensus role of Etherium, and help developers find alternative strategies to achieve their security goals.

It is important to stress that Vitalik supports the popularisation of the field of decentralised finance and other popular uses of blockchain today. In this case, he only urges not to go beyond adequate scenarios for the use of decentralized networks.

Note that Proof-of-Stake has many interesting development prospects. The consensus algorithm itself will be further developed by the developers, so that the Etherium network can be a stable and cheap basis for many projects. Well all the additional features can be implemented just in them.

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Meanwhile, the Ethereum Classic (ETC) project, which holds a special place in the history of Etherium’s development, has been criticised by Cardano founder Charles Hoskinson. He published the following post on Twitter.

ETC is now a fraudulent scheme, and its only purpose is for insiders to sell these coins to newcomers. Those buy ETCs with the blind hope of some magical future that will never come. There is no roadmap, no innovation, no team, no vision.

Obviously, such a statement does not go down well with Hoskinson's reputation and seems like an attempt to cause problems for a competitor. For example, the same Vitalik Buterin in July 2022 called Ethereum Classic a "perfectly normal chain" that miners could switch to once the Eth blockchain moves to PoS.

According to Bitcoinist sources, Ethereum Classic emerged in 2016 as a fork after problems surrounding the DAO incident on the Etherium network. Recall that the DAO project then received $150 million in ETH funding, but was hacked by hackers.

The community proposed rolling back the Etherium blockchain to compensate for the losses, but some people refused to support the initiative. After the hardforward, Ethereum Classic was created, which is considered a “classic” version of Etherium without human intervention in the network code.

Why does Hoskinson hate ETC so much? The fact is that his company Input Output (IOHK) has a direct connection to the development of the project. Hoskinson himself previously worked on ETC, but later left the team and founded Cardano. This led to a serious scandal last year, among other things, when Charles “stole” the official ETC Twitter account.

It can be assumed that Hoskinson has a lot of prejudice against the project itself. Ethereum Classic is now the 27th largest cryptocurrency by capitalisation, and the altcoin still has a large community of miners. More than 8 thousand of them are mining ETCs at the 2Miners mining pool. So far, only Ravencoin is more popular in this context.


We believe that Vitalik Buterin's current recommendations are primarily due to the low bandwidth of the Etherium network. In other words, the blockchain is unable to handle a huge number of transactions per second, so overloading it with third-party tasks makes no sense. Probably, when the situation changes thanks to the long-awaited innovations, the width of use of decentralised networks will also increase. And this will have a positive impact not only on Eth's reputation, but also on the popularisation of blockchain technology in general.


Look for even more interesting topics in our Millionaire Crypto Chat. There we will talk about other important topics that affect the digital asset niche in one way or another.

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