Ethereum miners oppose the proposed 75% block reward.

The new EIP-2878 will reduce the block reward by 75% and has been sharply criticized by Ethereum miners as a reason why it reduces network security.

A new Ethereum Enhancement (EIP) proposal has been met with harsh criticism from miners suggesting that the people behind the proposal are less concerned about network security and more focused on investor interests. .

EIP-2878 proposes that the block reward be reduced by 75%, from 2 ETH per block to 0.5 ETH. The EIP provides a reason to bring Ethereum’s inflation rate closer to Bitcoin’s (BTC) inflation rate and to maintain ETH’s purchasing power.

John Lilic, CEO of ConsenSys, and Jerome de Tychey, Head of Global Client Success at Ledger, shared their proposal on August 11 along with an in-depth explanation on the Ethereum Magicians forum, where developers and miners can discuss its validity.

Miners, particularly those using GPUs, were quick to reiterate the EIP because the drop in block reward more than doubles the network’s previous percentage drop and can lead to a 51% attack.

Too much – too soon

PegaSys Product Manager Time Beiko believes that “this is a huge change, because from 5 to 3 (40% discount), then from 3 to 2 (33% discount), now it goes from 2 to 2. 0.5 (75% reduction). “

“In my opinion, the most important consideration is network security (ie how we can ensure that the 51% chance of attacks remains low, how we can maintain a diverse pool of miners on the network, etc.).”

There is an opinion that “The ASIC is highly profitable compared to the GPU. Any reduction in the block reward without special modifications will remove the rest of the GPU from the network, resulting in the ASICs taking complete control of the network.”

Bit Capital Group CEO and co-founder Jimmy Thommes explained that Ethereum shouldn’t try to raise Bitcoin’s inflation rate because it’s an old network trying to do things differently. Not to mention that the proposal makes miners feel like they are being exploited.

ETH reduction principle

In principle, the majority are not against block reward reduction because Ethereum does not have an integrated halving mechanism like Bitcoin and therefore relies on EIP to control inflation with the proposed reward reductions. But most suggest going down to 1.5 or 1 ETH is more reasonable. A Reddit user said that while miners made a lot of money in 2017, it won’t affect current earnings.

Another user added that the proposal was not timely as Tether’s move to OMG would have “drastically reduced the commissions paid to miners”.

According to Ethereum developer Hudson Jameson, the proposal is still relatively new and has little community support. Therefore it should be considered based on EIP-1559.