Ethereum Classic has implemented ECIP-1017, establishing a fixed monetary policy that differentiates ETC from other smart contract platforms.
The 5M20 Policy
ECIP-1017 implements a monetary policy where:
- Block rewards reduce by 20% every 5 million blocks (approximately every 2.5 years)
- This creates a deflationary supply schedule
- Maximum supply is capped at approximately 210.7 million ETC
Emission Schedule
| Era | Blocks | Reward |
|---|---|---|
| Era 1 | 0 - 5M | 5 ETC |
| Era 2 | 5M - 10M | 4 ETC |
| Era 3 | 10M - 15M | 3.2 ETC |
| Era 4 | 15M - 20M | 2.56 ETC |
| Era 5 | 20M+ | 2.048 ETC |
Why Fixed Supply Matters
A fixed supply provides:
- Predictability: Miners and holders know the future supply
- Scarcity: Supply won't be arbitrarily inflated
- Sound Money: Economic properties similar to precious metals
Contrast with ETH
Unlike Ethereum, which has variable monetary policy, ETC maintains algorithmic, predictable issuance. This appeals to those who value monetary predictability.