Vitalik Buterin: Ethereum issuance is unlimited for security reasons

Ethereum co-founder Vitalik Buterin explains the reasoning behind unlimited ETH issuance and money supply.

In a Twitter conversation with Ethereum Classic (ETC) Foundation founder Barry Silbert and cryptocurrency enthusiast Kalle Rosenbaum, Buterin said that the issuance of ETH tokens “is based on a reasonable need for a certain level of security.”

He went on to add that he believes the principles for issuing ETH tokens “remain consistent.” Rosenbaum reiterated his view that the goal of altcoins is not to be a “monetary system.”

Ethereum has come under intense pressure in recent weeks as transaction activity clogs the network and brings high price volatility.

The blockchain’s sheer popularity in the ICO space has also called into question the ultimate value of ETH, with the unlimited number of tokens putting billions of dollars at risk.

Meanwhile, Buterin said in response to Silbert that the issuance rate of ETH in the future could also be “less than 0%” once other additional features come online.

As ETH continues to move into the mainstream beyond the cryptocurrency community, Buterin himself has even become the target of fake news sources.

After an article this week claimed that the developer had died in a car accident, Buterin later tweeted a selfie holding the latest ETH block information to prove that he is still alive.