The supply is growing quickly. This may be part of the reason the price has come down. At what supply number will it become harder to mine coins? A slower supply may help stabilize the price. Anyone have anything to add to this?
The ETN block reward calculation uses the current supply - that’s why its been dropping since the first block. It doesn’t have sharp drops like bitcoin at intervals, it has an emission curve with a tail.
Would you care to elaborate a little more on the calculation?
High supply is something we can’t stop, it’s a result of asic miners dumping their block rewards on exchanges, theres an extremely higher ratio of sellers to buyers.
A common misconception… There is a set amount of ETN mined in every block. This does not change depending on who it is or the quantity of miners/network hash. ASICs have zero effect on circulating supply amount.
The factor which effects the number of new coins being made and released to circulating supply is the emission rate used for calculating block reward within the blockchain code.
Now if you mean the proportion of those coins being sold versus held…based on who mines them? This is open to speculation. I don’t personally think ASIC miners sell much more than GPU farms/multi-rig owners… as all serious miners look to sell to cover costs… but that’s up for debate as it cant easily be measured.
The supply of new coins is governed by Electroneum’s blockchain code. The reward for each block is determined by the algorithm and reduces a little with every new block mined, as you can see here.
The reward per block will keep reducing slowly into perpetuity. This is similar to how Bitcoin’s block reward halves every couple of years, but Electroneum’s does it gradually instead of dropping sharply.
The amount of miners does not really impact the emission rate of Electroneum due to the difficulty algorithm. As more and more miners come on board, the difficulty increases, making it harder to mine a block. When the miners leave again, the difficulty decreases and makes it easier to mine a block. This algorithm makes sure only 1 block is mined every 2 minutes (when averaged over a long time). So even if some entity were to come on board and mine the heck out of Electroneum in an effort to increase the rate of new coins, the difficulty algorithm will respond and bring the block time back to 2 minutes average.
So in summary, the block reward reduces slowly over time, and the difficulty regulates the rate at which blocks are mined so that the number of new coins entering the system stays fairly constant. The only way to change this would be to adjust the parameters in the code and then successfully fork Electroneum (make sure everybody starts using the new code).
True, but I believe the ASIC miners can have a negative impact on price versus GPU mining. ASIC miners are cheaper to operate (they use less electricity), there is less operating cost involved. Therefore, if an ASIC miner wants to recoup cost just by breaking even or making a tiny profit, they can sell that ETN at a lower price on the exchange ~.005 USDT.