Ethereum Classic recently reached block 15,000,001. With this comes a reduction in the block reward, by 20%.

Block reward was previously 3.2 ETC and has been reduced to 2.56 ETC.

ETC block rewards are reduced by 20% every 5 million blocks, which is about 2.5 years.

The logic is easy to convey: ETC is programmable sound money built on top of the largest Proof of Work smart contract blockchain. Ethereum Classic is censorship resistant and the premiere network to build unstoppable applications. Code is law.

https://ethereumclassic.org/blog/2022-03-23-etc-nears-bitcoin-inspired-block-reward-reduction

What does this mean for miners?

There are many variables to consider when mining, block reward is a big factor and directly impacts income. If nothing else in the market changed, profit would lower by 20%.

Savvy miners know that this reduction in supply will skew the supply and demand curve. In time, as markets do, price will adjust to the new supply and demand curve. Over time, we have seen drastic upward swings in price after the BTC halvenings.

Ethereum Classic will have Bitcoin level inflation by 2032

Network Difficulty is a variable to consider also. With reduction in block reward, some miners may choose or be forced to stop mining. Less miners on the network means lower difficulty which then means higher earnings.

Overall, we are excited for the future of ETC and will continue forward!

Happy mining!

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