Ethereum Classic implemented ECIP-1017 at block 5,000,001, establishing a fixed monetary policy that differentiates ETC from other smart contract platforms. ECIP-1039 later clarified the rounding behavior for sub-wei reward calculations.
The 5M20 Policy
ECIP-1017 implements a disinflationary emission schedule:
- Block rewards reduce by 20% every 5 million blocks (approximately every 2.5 years)
- Uncle and nephew rewards reduce at the same rate
- Maximum supply is capped at approximately 210.7 million ETC
Emission Schedule
| Era | Blocks | Block Reward | Uncle Reward |
|---|---|---|---|
| Era 1 | 0 – 5M | 5 ETC | 0.15625 ETC (1/32) |
| Era 2 | 5M – 10M | 4 ETC | 0.125 ETC |
| Era 3 | 10M – 15M | 3.2 ETC | 0.1 ETC |
| Era 4 | 15M – 20M | 2.56 ETC | 0.08 ETC |
| Era 5 | 20M – 25M | 2.048 ETC | 0.064 ETC |
ECIP-1039: Rounding Precision
ECIP-1039 specified that when reward reductions produce sub-wei fractional amounts, the value rounds down to the nearest wei. This prevents precision drift over long timeframes and ensures deterministic reward calculation across all client implementations.
Why Fixed Supply Matters
- Predictability: Miners and holders know the future issuance schedule with certainty
- Scarcity: Supply cannot be arbitrarily inflated by protocol changes
- Sound Money: Algorithmic, auditable monetary properties — contrasts with Ethereum's variable issuance
Specifications
- ECIP-1017: Monetary Policy and Final Modification to the Ethereum Classic Emission Schedule
- ECIP-1039: Monetary Policy Rounding Specification