Basics5 min read

ETC Tokenomics

Explore the economic model of Ethereum Classic including supply schedule, emission rate, and monetary policy.

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Ethereum Classic has a fixed monetary policy with a known maximum supply. This makes ETC one of the few smart contract platforms with sound money properties similar to Bitcoin.

Maximum Supply

The maximum supply of ETC is approximately 210.7 million coins. This cap is enforced by the protocol and cannot be changed without a hard fork—which the community has consistently rejected.

Unlike many cryptocurrencies with unlimited or uncertain supply, you can calculate exactly how much ETC will ever exist.

Emission Schedule

ETC follows a deflationary emission model where block rewards decrease by 20% every 5 million blocks (roughly every 2.5 years). This is known as the “5M20” policy.

EraBlock RangeBlock RewardEra Emission
Era 11 - 5M5 ETC25M ETC
Era 25M - 10M4 ETC20M ETC
Era 310M - 15M3.2 ETC16M ETC
Era 415M - 20M2.56 ETC12.8M ETC
Era 520M - 25M2.048 ETC10.24M ETC

Current era (as of 2025): Era 4 with 2.56 ETC block reward

Sound Money Properties

ETC exhibits the key properties of sound money:

  • Scarcity: Fixed maximum supply creates genuine digital scarcity
  • Predictability: Supply at any future block is fully calculable
  • Divisibility: Each ETC divides into 10^18 smaller units (wei)
  • Durability: Digital asset immune to physical degradation
  • Fungibility: Every ETC is interchangeable with any other
  • Portability: Transfer any amount globally in minutes

No Treasury or Pre-Mine

Unlike many newer projects, Ethereum Classic:

  • Has no ongoing treasury allocation from block rewards
  • Distributes 100% of new coins to miners
  • Maintains strict neutrality in coin distribution

A treasury proposal was rejected by the community in 2021, demonstrating the commitment to fair distribution.

Inflation Rate Over Time

As block rewards decrease and more coins enter circulation, ETC's inflation rate continuously declines:

  • Early eras saw higher annual inflation as the network bootstrapped
  • Current inflation is in the low single digits
  • Inflation approaches zero as emission decreases

This contrasts with fiat currencies that typically experience ongoing or increasing inflation.

Transaction Fees

Beyond block rewards, miners also earn transaction fees. Users pay fees in ETC (measured in gas) for:

  • Simple transfers between addresses
  • Smart contract interactions
  • Token swaps and DeFi operations
  • Contract deployments

Fees are determined by network demand—higher activity means higher fees, though ETC generally maintains lower fees than congested networks.

Use Cases

ETC's monetary properties support various use cases:

  • Store of value: Fixed supply provides inflation hedge
  • Medium of exchange: Pay for goods, services, and network operations
  • Gas for computation: Required for smart contract execution
  • DeFi collateral: Use as collateral in lending protocols
  • Liquidity provision: Pair with other tokens for trading

Acquiring ETC

You can acquire ETC through:

  • Exchanges: Buy with fiat or trade other crypto
  • Mining: Contribute hashpower and earn block rewards
  • DEXs: Swap tokens on ETCswap
  • Peer-to-peer: Direct transfers from others

Summary

Ethereum Classic combines smart contract capability with sound monetary policy. The fixed supply, predictable emission, and fair distribution make ETC a unique asset—a programmable blockchain with the scarcity properties of hard money.

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