Build unstoppable applications
- 60 million ether created to contributors of the presale
- 12 Million (20% of the above) were created to the development fund, most of it going to early contributors and developers and the remaining to the Ethereum Foundation
- 5 ethers are created every block (roughly 15 seconds) to the miner of the block
- 2-3 ethers are sometimes sent to another miner if they were also able to find a solution but his block wasn’t included (called uncle/aunt reward)
Note that after the Byzantium update is implemented, the mining and uncle reward is reduced to 3 ethers and 0.625-2.625 ethers, respectively.
How do I mine ether?
The Ethereum network is kept running by computers all over the world. In order to reward the computational costs of both processing the contracts and securing the network, there is a reward that is given to the computer that was able to create the latest block on the chain. Every 15 seconds, on average, a new block is added to the blockchain with the latest transactions processed by the network and the computer that generated this block will be awarded 3 ether. Due to the nature of the algorithm for block generation, this process (generating a proof of work) is guaranteed to be random and rewards are given in proportion to the computational power of each machine.
This process is usually called mining in the crypto-currency lingo
Is the ether supply infinite?
But the rate is not expected to be kept: sometime in 2017 Ethereum will be switched from Proof of Work to a new consensus algorithm under development, called Casper that is expected to be more efficient and require less mining subsidy. The exact method of issuance and which function it will serve is an area of active research, but what can be guaranteed now is that (1) the current maximum is considered a ceiling and the new issuance under casper will not exceed it (and is expected to be much less) and (2) whatever method is ultimately picked to issue, it will be a decentralized smart contract that will not give preferential treatment to any particular group of people and whose purpose is to benefit the overall health and security of the network.
Ethereum Blog blog.ethereum.org
Ethereum Constantinople/St. Petersburg Upgrade Announcement
on February 22, 2019 at 8:00 am
The Ethereum network will be undergoing a scheduled upgrade at block number 7,280,000, which is predicted to occur on Thursday, February 28, 2019. The exact date is subject to change depending on block times between now and then and could be activated 1-2 days before or after. A countdown timer... […]
Ethereum Foundation Grants Program Wave 5
on February 21, 2019 at 8:00 am
The Ethereum Foundation Grants Program is an ongoing and continually improving experiment into how the EF can best invest the Ethereum community’s resources for the highest long-term impact on the Ethereum ecosystem. When the Grants Program began in early 2018, the core focus was on supporting scalability efforts. This focus... […]
Security Alert: Ethereum Constantinople Postponement
on January 15, 2019 at 8:00 am
The Ethereum Core Developers and the Ethereum Security Community were made aware of the potential Constantinople-related issues identified by ChainSecurity on January 15, 2019. We are investigating any potential vulnerabilities and will follow with updates in this blog post and across social media channels. Out of an abundance of caution,... […]
Ethereum Constantinople Upgrade Announcement
on January 11, 2019 at 8:00 am
NOTE: DUE TO A SECURITY VULNERABILITY WE ARE POSTPONING CONSTANTINOPLE. PLEASE DISREGARD THE INSTRUCTIONS IN THIS BLOG POST. CLICK HERE FOR MORE INFORMATION. The Ethereum network will be undergoing a scheduled upgrade at block number 7,080,000, which is predicted to occur on Wednesday, January 16, 2019. The exact date is... […]
Announcing an Ethereum Foundation Grant to Parity Technologies
on January 7, 2019 at 8:00 am
The Ethereum Foundation is thrilled to announce a scalability, usability and security grant of five million dollars (USD) to Parity Technologies. For several years, Parity Technologies has been an invaluable member of the Ethereum ecosystem for their leadership in core development efforts, their Parity Ethereum client and more. Their work... […]