More profit than PoW mining? V God proposes a high return Ethereum PoS algorithm

More profit than PoW mining? V God proposes a high return Ethereum PoS algorithm

According to cointelegraph.com, Ethereum co-founder Vitalik Buterin offered a higher return on equity for the upcoming implementation of the Proof of Equity (PoS) algorithm on GitHub's Ethereum blockchain.

According to the proposal, when 134,217,728 Ethereum coins are used for equity verification transactions, 2,097,152 Ethereum will be issued each year, with an annual return of approximately 1.56%. The current cycle supply of Ethereum is 105,764,762 ETH, which means this is its theoretical maximum.

The proposal also estimates the annual rate of return for various quantities of verification methods. For example, if only 1 million ETHs use this configuration, the certifier will receive an annual return of 18.1%. The community on Reddit seems to respond well to the proposal, and many people think the ratio is more reasonable than before.

Ethereum researcher Justin Drake estimates that after implementing PoS and sharding (with 32 million ETH) verifiers will receive a basic return of about 3.2%. This figure is equivalent to about 1% of the total supply.

However, the implementation of the upcoming Ethereum Improvements 1559 will mean that some transaction costs will be burned. Therefore, Drake estimates that the Gas consumption per segment per year is 1,000 ETH and the inflation rate is equivalent to about 0.5%.

Buterin previously stated that future blockchains based on equity proofs would have "thousands of times more efficiency." Recently, Buterin also believes that the encryption community should go beyond the individualism of its early password punks, but use technology to create new, fair and innovative systems with positive social impact.

Source: than push