Vitalik suggested redenomination of all rewards like mining rewards, staking rewards, etc into a new unit called Reward Units or RU for short.
1 RU = (1 - CURRENT_SUPPLY / MAX_SUPPLY) ETH
Buterin goes on to propose the max supply of ETH be set at 120,204,432, which is exactly double the value of ETH sold in the original sale.
If the hard fork is implemented today, the current RU value would be 16.74 as the miner reward is 3 ETH.
Total Supply - 98.5 Million Max Supply - 120 Million 1 RU = 1 - 98.5/120 ~ 0.1792 ETH Hence, 3 ETH = 16.74 RU
This would mean as the supply increases, the mining rewards decrease.
When the supply is 100 Million, the mining reward will be 2.79 ETH per block.
Earlier Buterin also proposed a possible scaling solution using sharding and charging rent fees to those who use the network. Network users have to pay annual fees based on the storage used for keeping their data. Basically, no more free stuff.
If, Ethereum network remains to be PoW, the block rewards will halve every 744 days or roughly 2 years. At some point it is just going to be super expensive to mine Ethereum.
However these proposals take time to be implemented. In case, by the time the decision is made to implement a hard cap, the ETH supply is close to 120 Million, the Hard cap can be revised to 144 Million, Buterin said in the post.
I would recommend 144,052,828 ETH, or exactly 2x the total amount released in the genesis block including both the sale and premines. – Vitalik Buterin
What do you think about the Hard cap proposal? Let us know in the comments below