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December 11, 2017Block #5,000,000

Gotham

ECIP-1017 monetary policy — established the 210.7 million ETC supply cap with era-based emission reduction.

Gotham (ECIP-1017) Network Upgrade

Activation Block: 5,000,000
Activation Date: December 11, 2017
ECIP Status: Final


Overview

Gotham was the most consequential economic upgrade in Ethereum Classic's history. It established a fixed monetary policy with a hard supply cap — something the original Ethereum protocol never defined. ECIP-1017 introduced era-based emission reduction (20% every 5 million blocks), capping the total supply at approximately 210.7 million ETC. ECIP-1039 specified the precise rounding behavior for sub-wei calculations across eras.

Included Changes

ECIPTitleSummary
ECIP-1017Monetary Policy and Final Modification to the Ethereum Classic Emission ScheduleEra-based 20% reduction every 5M blocks, ~210.7M supply cap
ECIP-1039Monetary Policy Rounding SpecificationDefines precise rounding behavior for sub-wei reward calculations

Technical Details

  • Era-based emission schedule — Block rewards reduce by 20% every 5,000,000 blocks (an "era"):
    • Era 1 (blocks 1–5,000,000): 5 ETC per block
    • Era 2 (blocks 5,000,001–10,000,000): 4 ETC per block
    • Era 3 (blocks 10,000,001–15,000,000): 3.2 ETC per block
    • Each subsequent era: previous reward × 0.8
  • Supply cap — The geometric series converges to approximately 210,700,000 ETC total supply. Unlike Bitcoin's halving (50% reduction), ETC uses a smoother 20% reduction curve
  • Uncle and nephew rewards — Uncle block rewards and nephew inclusion rewards also reduce proportionally with each era, maintaining consistent incentive structures
  • ECIP-1039: Rounding specification — As era rewards decrease, the per-block reward eventually involves fractional wei values. ECIP-1039 specifies that rewards are rounded down (truncated) to the nearest wei, ensuring deterministic calculation across all client implementations

Context

Before Gotham, ETC had no defined monetary policy — block rewards would have continued at 5 ETC per block indefinitely, resulting in unlimited supply. The fixed emission schedule gave ETC a clear economic identity: a sound money asset with predictable, declining issuance and a known supply cap. The 20% reduction per era (versus Bitcoin's 50% halving) produces a gentler emission curve that avoids the abrupt supply shocks associated with halvings.

Outcome

Activated at block 5,000,000 on December 11, 2017. Era 2 began immediately, reducing the block reward from 5 ETC to 4 ETC. The monetary policy has operated continuously since activation, with the network currently in Era 4 (2.56 ETC per block).


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