Ethereum Classic Halving Is Now Complete

Ethereum Classic (ETC) is the ‘original’ Ethereum that rarely makes the news. However, it’s the next major blockchain after Bitcoin to experience a halving event in 2024. Learn briefly about how this works and how it may impact Ethereum Classic.

About Ethereum Classic

Ethereum Classic is a project that came to be during the infamous 2016 DAO hack that split what was one Ethereum into two. The DAO (decentralized autonomous organisation) was a revolutionary idea on Ethereum in 2016 of an investor-directed venture capital fund.

In simple terms, it was a massive crowdfunding campaign, with members owning special DAO tokens as part of a large pool of investor funds. Unfortunately, some sneaky guys with high-level coding experience took advantage, stealing 3.6 million ETH (about R730 million at the time) - a dramatic hack.

Some Ethereum members thought of ways to recover the money, ‘delete’ this event from its history, or ‘roll back’ the blockchain to a time before the attack. However, another group disagreed—after all, code is law. In other words, what happens on blockchains stays on blockchains.?

Ultimately, Ethereum Classic is the unedited version of what the world calls Ethereum.

What is halving on Ethereum Classic?

Ethereum and Ethereum Classic are quite similar - decentralized computing programs that allow smart people (developers) to build other decentralized computing programs or, more specifically, applications and smart contracts.

Like Bitcoin, Ethereum and Ethereum Classic relied on miners to create tokens. However, Ethereum switched to a proof-of-stake or staking system in 2022. Many mining-based blockchains have a ‘halving’ process. This is where the rewards miners receive get cut (usually in half) after several years, typically two or four.

Ethereum Classic miners will now earn 2.048 ETC to mine a block (roughly R1050), down from 2.56 ETC (roughly R1450). The next halving for Ethereum Classic will happen around the same time in two years, the last happening in April 2022.

It’s worth noting that it’s not technically ‘halving’ on Ethereum Classic but rather known as ‘fifthening.’ This is because the code states that the block rewards should be reduced after every 5 million blocks.

The reason for halving is to maintain (and even increase) the value of a cryptocurrency over time. It boils down to the economic law of supply and demand: lower supply equals higher demand, which means higher price.

Coins like Ethereum Classic have a fixed supply, which, in this case, is 210.7 million. Currently, about 147 million, or 70% of this number, is in the markets. Halving slows down the production rate of ETC. So, there will still be plenty of ETC for people to own. Yet, the frequency at which it forms will become less and less with time, making it probably more valuable.

The impact of halving on Ethereum Classic

Ethereum Classic has remained a ‘slow burner’ for many years, with some people forgetting it existed. So, halving will probably not be a talking point, and the crypto market will tick along as usual.

Still, with four halvings complete, the mining difficulty may decrease because there would be less incentive to mine Ethereum Classic. Also, more users may decide to ‘HODL’ (hold on for dear life) if they still believe in the blockchain’s future.

Buying Ethereum Classic on DoshFX

And there you have it! Ethereum Classic will likely revert to obscurity following this news. Yet, it remains a relevant project to many crypto users, given its history.

We have little interest in the complex side of Ethereum Classic, which involves mining machines, hash rates, and smart contracts. Instead, we offer a simple way to own ETC on a regulated platform with your rands, which you can also trade with over 20 other popular coins.

Learn more here to get started.

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