Doomsday Chariot ETC production reduction, is it worth looking forward to?

Today's big news, in addition to the falling A shares, there is also ETC, which is about to cut production.


There is never a shortage of topics in the currency circle, let alone ETC with its own topics. Those who hold ETC hope that it will rise, but are afraid that it will rise. The main reason is that ETC is called the "chariot of doom" by people in the currency circle, because ETC often rises against the market and goes independent market before the market falls, becoming a well-deserved "reverse indicator".

From the time when it attracted the attention of the public, until now it has been gradually overtaken by others, where is its core value? In terms of long-term value, is ETC worthy of our attention? Can this ETC production reduction bring any enlightenment to the encryption industry?

According to Viawallet data, ETC is expected to reduce the block reward at 19:46 tonight. At that time, the ETC block reward will be reduced from 3.2$ETC to 2.56$ETC, with a reduction of 20%.

01ETC Production Reduction Mechanism

The ECIP1017 document was released on December 11, 2017, which re-defined the issuance of ETC: when the block height reaches 5,000,000, the block reward will be reduced by 20%, and thereafter every 5,000,000 blocks will be reduced by another 20%. Due to the change of ETC reward rate, the total supply is expected to be about 210 million ETC, and the maximum will not exceed 230 million ETC.

The reduction of ETC production is actually good news, because with the general market environment unchanged, the supply is reduced, which may lead to an increase in the price of ETC. But everyone in the currency circle understands that there are many factors that affect the price of ETC, not only affected by the supply, but also by the stock funds in the market, the trend of BTC, etc. If you refer to the trend of BTC, ETC must gradually rise after halving.

It is worth noting that, rather than paying attention to the price increase caused by the reduction of ETC production, we need to pay more attention to the long-term impact of the conversion of Ethereum to PoS on ETC.

02Ethereum to PoS

With the arrival of ETH2.0, the consensus mechanism of ETH will be changed from PoW to PoS, and the traditional mining computing power on ETH will be migrated accordingly. Compared with the PoW mechanism, the advantage of PoS is that the consumption of resources and energy will be reduced, but there is a certain node pledge threshold.

If block rewards are calculated based on the amount of ETH pledged, it may deepen the gap between rich and poor. ETC not only has the smart contract function of ETH, but also fully adheres to the decentralization concept of BTC. It is undoubtedly the most suitable blockchain to undertake the computing power on ETH.

If ETC can take advantage of the historical opportunity of this reduction in production and the conversion of ETH to PoS, it is likely to get rid of some negative effects brought about by its dark history, and there is also a chance to return to the mainstream cryptocurrency.

03ETC future market

Although many people bad-mouth ETC, saying that ETC is a currency that needs to be eliminated in the long run. This sentence is actually a paradox. From the perspective of long-term time, nine out of ten digital currencies currently on the market will not exist.

However, from a technical analysis, the potential application scenarios of ETC are very broad, theoretically covering most applications that require trust and contract nature; developing IoT applications on the ETC platform has its unique advantages: stable and secure network, fixed upper limit, and expansion Capabilities, private transactions, machine payments, etc. will promote more applications on ETC.

In the end, whether it is the migration of the consensus mechanism or the reduction of production, it is only a point in the development process of ETC. If ETC has been following the current path-putting technology first and devoting itself to the development of technology and applications. As it continues to develop into a decentralized and immutable infrastructure, ETC will usher in its coronation moment. As long as the ETC ecology is continuously developed and the public chain is given new vitality, so as to integrate more users and funds, it will be able to give the public more surprises.

The above views represent the views of the author only, not the views of the platform. Investment is risky, please invest carefully! On the premise of respecting the market, we are committed to researching market conditions, new projects, trend signals, NFT and deeper logic, and bid farewell to being a leek that lies flat.