Is there a limit to how much Ether can be created?
Yes, there is a limit to how much Ether can be created.
This limit is set by the Ethereum protocol and is known as the “total supply” of Ether. The total supply of Ether is currently capped at 18 million ETH per year, with an eventual maximum of around 100 million ETH. The Ethereum protocol was designed to be inflationary, meaning that new Ether will be created over time to incentivize miners and developers to continue working on the network.
This inflation rate is currently set at 5 ETH per block, which works out to 18 million ETH per year. This rate will decrease over time as the total supply approaches its maximum of 100 million ETH. The total supply of Ether can never exceed this maximum amount, so it is important for users to understand that there will never be more than 100 million ETH in circulation.
This helps ensure that the value of Ether remains stable over time and prevents any single user or group from controlling too much of the network’s resources.
