Ethereum Fork/Block Reward Reduction Kills GPU Mining Profitability

[VoskCoin]

Ethereum has forked and thus implemented changes to their blockchain. ETH reduced their block reward from 3 to 2 Ethereum per block SIGNIFICANTLY reducing miner earnings.

https://www.youtube.com/watch?v=8yXku-FpAno


Unfortunately, Ethereum DID NOT implement ProgPoW which is a newer mining algorithm designed to put ASIC and GPU miners on a leveled playing field. Ethereum current mining algorithm is dominated by ASIC miners as well as FPGA miners -- and of course remaining GPU miners. Ethereum is the coin that really ushered in the mining gold rush of 2017 and early 2018.

Ethereum is still considering ProgPoW which anything other than Ethash (current mining algorithm) would be a welcome change, most popular pools such as Ethermine are supporting this movement, so by simply mining on Ethermine you will signal your support for ProgPoW.

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[yuzuak]

asic devices broke the balance, market has turned into bear market unfortunately.

[xxcsu]

Ethereum has forked and thus implemented changes to their blockchain. ETH reduced their block reward from 3 to 2 Ethereum per block SIGNIFICANTLY reducing miner earnings.

5 days after the Ethereum Constantinople Hard Fork, pretty much i still mining the same amount of ETH, what i mined before the hard fork ( GPU's, Few FPGA and 2x ASIC (E3) )
The "Thirdening" , the reduction in block mining reward by 33% is happened with the hard fork , but its also going to delay the difficulty bomb for a period of 12 months.
Difficulty is changed -35% is the past few days, after the hard fork....( as of March-06-2019 )



"Although lower rewards will make mining less profitable, this upgrade does not disincentivize miners as much as it could have. Constantinople actually delays a “difficulty bomb” that would have made mining much more system-intensive and harder to profit from. That “bomb” has now been delayed for twelve months, allowing many miners to continue enjoying profits."

And be ready for the next change Ethereum Developers Prepare To Activate the next hard fork, Istanbul Shortly After The Successful Constantinople Hardfork.
"This hardfork would most likely include some of the Constantinople EIPs. All the new proposals must be submitted before the end of May for review. While the full implementation will be in eight months, a soft implementation will be done in July to test Istanbul’s compatibility on the Ethereum blockchain. The testnet upgrade is also estimated to take place in August. By October, if everything goes to plan, the Istanbul hardfork will be ready for activation."

After Istanbul, the team will start working on the implementation of Serenity and ProgPow.

Serenity has been dubbed Ethereum 2.0 while ProgPow stands for Programmatic Proof-of-Work upgrade. After ProgPow is implemented, ASIC miners will have less control of the network and GPU miners will benefit more.

Serenity is going to be the final upgrade. It will put Ethereum in the last phase. After Serenity, Ethereum would have successfully moved from the proof-of-work to the proof-of-stake consensus algorithm. Serenity will introduce Casper and Beacon on the Ethereum blockchain.

PS:
I have only two asic (E3) for ETH, what i noticed both of my ASIC hashrate is decreased by 10-15MH/s right after the Constantinople Hard Fork, GPU and FPGA miners hashing speed was not affected, all my ETH mining "toys" is mining on "ethermine.org"
Anyone noticed something similar about decreased ASIC hashrates after the hard fork ??

[adaseb]

Yes the mining profitability went down a little. With my power costs I think I net a dime before and now it's like a nickel, per GPU.

It's a small change and I am still leaving the rigs powered off. What i hope is the ProgPOW to be implemented sometime in the next 6 months or so. Will keep my GPUs till then and see what the future brings.

Who knows, maybe we will see $1000 ETH again.

[VoskCoin]

Ethereum has forked and thus implemented changes to their blockchain. ETH reduced their block reward from 3 to 2 Ethereum per block SIGNIFICANTLY reducing miner earnings.

5 days after the Ethereum Constantinople Hard Fork, pretty much i still mining the same amount of ETH, what i mined before the hard fork ( GPU's, Few FPGA and 2x ASIC (E3) )
The "Thirdening" , the reduction in block mining reward by 33% is happened with the hard fork , but its also going to delay the difficulty bomb for a period of 12 months.
Difficulty is changed -35% is the past few days, after the hard fork....( as of March-06-2019 )



"Although lower rewards will make mining less profitable, this upgrade does not disincentivize miners as much as it could have. Constantinople actually delays a “difficulty bomb” that would have made mining much more system-intensive and harder to profit from. That “bomb” has now been delayed for twelve months, allowing many miners to continue enjoying profits."

And be ready for the next change Ethereum Developers Prepare To Activate the next hard fork, Istanbul Shortly After The Successful Constantinople Hardfork.
"This hardfork would most likely include some of the Constantinople EIPs. All the new proposals must be submitted before the end of May for review. While the full implementation will be in eight months, a soft implementation will be done in July to test Istanbul’s compatibility on the Ethereum blockchain. The testnet upgrade is also estimated to take place in August. By October, if everything goes to plan, the Istanbul hardfork will be ready for activation."

After Istanbul, the team will start working on the implementation of Serenity and ProgPow.

Serenity has been dubbed Ethereum 2.0 while ProgPow stands for Programmatic Proof-of-Work upgrade. After ProgPow is implemented, ASIC miners will have less control of the network and GPU miners will benefit more.

Serenity is going to be the final upgrade. It will put Ethereum in the last phase. After Serenity, Ethereum would have successfully moved from the proof-of-work to the proof-of-stake consensus algorithm. Serenity will introduce Casper and Beacon on the Ethereum blockchain.

PS:
I have only two asic (E3) for ETH, what i noticed both of my ASIC hashrate is decreased by 10-15MH/s right after the Constantinople Hard Fork, GPU and FPGA miners hashing speed was not affected, all my ETH mining "toys" is mining on "ethermine.org"
Anyone noticed something similar about decreased ASIC hashrates after the hard fork ??

to clarify what I said/meant -- while diff dropped -- the overall "pie" of ETH earnings was significantly reduced (3 to 2) -- also comparing to an incorrect difficulty gives us a skewed result (makes it way easier for the general population of miners to accept this) if diff was proper, the impact would be more obvious

[abstractHaze]

at will and whim, the developers can change and do as they please. mmmmm.......

[posi]

Unfortunately, Ethereum DID NOT implement ProgPoW which is a newer mining algorithm designed to put ASIC and GPU miners on a leveled playing field. Ethereum current mining algorithm is dominated by ASIC miners as well as FPGA miners -- and of course remaining GPU miners. Ethereum is the coin that really ushered in the mining gold rush of 2017 and early 2018.

The ethereum new fork due lead to reduction of the mining rewards but we know ethereum was decentralized project and if the miners don't supported the reduction the fork wont have take place in the first place. However, I checked some of their roadmap and nothing was mentioned concerning  ASIC and GPU miners been on a leveled playing field.

[sxemini]

Average Block Time decreased by 5 sec from 20 down to 15 sec. This is quite much and with low diffi, i get the same amount of eth like before the fork.

https://etherscan.io/chart/blocktime

[yuzuak]

There are 3 big bears. For the bull to come, Binance and bitmex leave, block asic devices in the gpu field, rebel against eth developers

[xxcsu]

Ethereum has forked and thus implemented changes to their blockchain. ETH reduced their block reward from 3 to 2 Ethereum per block SIGNIFICANTLY reducing miner earnings.

5 days after the Ethereum Constantinople Hard Fork, pretty much i still mining the same amount of ETH, what i mined before the hard fork ( GPU's, Few FPGA and 2x ASIC (E3) )
The "Thirdening" , the reduction in block mining reward by 33% is happened with the hard fork , but its also going to delay the difficulty bomb for a period of 12 months.
Difficulty is changed -35% is the past few days, after the hard fork....( as of March-06-2019 )

to clarify what I said/meant -- while diff dropped -- the overall "pie" of ETH earnings was significantly reduced (3 to 2) -- also comparing to an incorrect difficulty gives us a skewed result (makes it way easier for the general population of miners to accept this) if diff was proper, the impact would be more obvious

Just to clarify what i said A week after The hard fork, My ETH earnings did not reduced at all !!! (Mining ETH right now with around 2.8 GH/s)
Your statement "ETH reduced their block reward from 3 to 2 Ethereum per block SIGNIFICANTLY reducing miner earnings" is not correct! You concentrating on reduced reward, and not calculating the lower difficulty bc the hard fork, and totally left out the delayed difficulty bomb from your calculation :-)

"Ethereum Difficulty Bomb: The Simple ​Explanation:

The Ethereum Difficulty Bomb simply refers to a tool within Ethereum. This tool allows the core Ethereum developers to adjust how difficulty it is for a miner to win a reward. ​Miners win rewards each time they create a new block and add it to the blockchain. 

When the Ethereum Difficulty Bomb is set to "detonate", it will get exponentially difficult for miners to win rewards via mining. But why would the developers want this? Because eventually they will want miners to stop mining and start validating. Remember, Ethereum is set to transition from Proof of Work to Proof of Stake. There is no mining in Proof Of Stake. We will have validators instead."

[VoskCoin]

Ethereum has forked and thus implemented changes to their blockchain. ETH reduced their block reward from 3 to 2 Ethereum per block SIGNIFICANTLY reducing miner earnings.

5 days after the Ethereum Constantinople Hard Fork, pretty much i still mining the same amount of ETH, what i mined before the hard fork ( GPU's, Few FPGA and 2x ASIC (E3) )
The "Thirdening" , the reduction in block mining reward by 33% is happened with the hard fork , but its also going to delay the difficulty bomb for a period of 12 months.
Difficulty is changed -35% is the past few days, after the hard fork....( as of March-06-2019 )

to clarify what I said/meant -- while diff dropped -- the overall "pie" of ETH earnings was significantly reduced (3 to 2) -- also comparing to an incorrect difficulty gives us a skewed result (makes it way easier for the general population of miners to accept this) if diff was proper, the impact would be more obvious

Just to clarify what i said A week after The hard fork, My ETH earnings did not reduced at all !!! (Mining ETH right now with around 2.8 GH/s)
Your statement "ETH reduced their block reward from 3 to 2 Ethereum per block SIGNIFICANTLY reducing miner earnings" is not correct! You concentrating on reduced reward, and not calculating the lower difficulty bc the hard fork, and totally left out the delayed difficulty bomb from your calculation :-)

"Ethereum Difficulty Bomb: The Simple ​Explanation:

The Ethereum Difficulty Bomb simply refers to a tool within Ethereum. This tool allows the core Ethereum developers to adjust how difficulty it is for a miner to win a reward. ​Miners win rewards each time they create a new block and add it to the blockchain. 

When the Ethereum Difficulty Bomb is set to "detonate", it will get exponentially difficult for miners to win rewards via mining. But why would the developers want this? Because eventually they will want miners to stop mining and start validating. Remember, Ethereum is set to transition from Proof of Work to Proof of Stake. There is no mining in Proof Of Stake. We will have validators instead."

yeah I get that

& inflated diff then made no sense.

if ETH cant even get a HF like this straight for half a year, I can only imagine PoS hitting the fan lol see you in 2030 w/ that

[VoskCoin]

Unfortunately, Ethereum DID NOT implement ProgPoW which is a newer mining algorithm designed to put ASIC and GPU miners on a leveled playing field. Ethereum current mining algorithm is dominated by ASIC miners as well as FPGA miners -- and of course remaining GPU miners. Ethereum is the coin that really ushered in the mining gold rush of 2017 and early 2018.

The ethereum new fork due lead to reduction of the mining rewards but we know ethereum was decentralized project and if the miners don't supported the reduction the fork wont have take place in the first place. However, I checked some of their roadmap and nothing was mentioned concerning  ASIC and GPU miners been on a leveled playing field.

overall sentiment towards ETH is reflecting in its price

[VoskCoin]

Average Block Time decreased by 5 sec from 20 down to 15 sec. This is quite much and with low diffi, i get the same amount of eth like before the fork.

https://etherscan.io/chart/blocktime

25% block time reduction vs 33% reward reduction

[VoskCoin]

There are 3 big bears. For the bull to come, Binance and bitmex leave, block asic devices in the gpu field, rebel against eth developers

why must binance leave?

[xxcsu]

if ETH cant even get a HF like this straight for half a year, I can only imagine PoS hitting the fan lol see you in 2030 w/ that

You wasnt talking about 2030 in your original post  

Ethereum has forked and thus implemented changes to their blockchain. ETH reduced their block reward from 3 to 2 Ethereum per block SIGNIFICANTLY reducing miner earnings.

25% block time reduction vs 33% reward reduction

What about 33% reward reduction paired with -35% difficulty change ?  
Can you see from this 2 numbers why the miner earning didn't changed, or do you need future explanation ?
You talking about 2030 ? Then edit your incorrect post to something like this :  

"Ethereum has forked and thus implemented changes to their blockchain. ETH reduced their block reward from 3 to 2 Ethereum per block, this going to reducing miner earnings by 2030 SIGNIFICANTLY . Till we get there is going to be a continuous difficulty change, as more miner joining ( or leaving ) the ETH network , and when the difficulty bomb going to explode, then my statement will be perfectly true, the ETH mining earnings will be SIGNIFICANTLY reduced"

You right ... in the future, as more miners joining to mine ETH, the difficulty going to go up, then the miner rewards will be much less... Just like with all the others mineable coins but as you can see the miner rewards has been reduced, but at the same time the difficulty has been adjusted to make sure miners are not leaving the network

When the ETH network will be ready for POS, the difficulty bomb will be activated, that going to kill the mining for sure, because eventually the developers will want miners to stop mining and start validating

[fanatic26_]

Just to clarify what i said A week after The hard fork, My ETH earnings did not reduced at all !!! (Mining ETH right now with around 2.8 GH/s)
Your statement "ETH reduced their block reward from 3 to 2 Ethereum per block SIGNIFICANTLY reducing miner earnings" is not correct! You concentrating on reduced reward, and not calculating the lower difficulty bc the hard fork, and totally left out the delayed difficulty bomb from your calculation :-)

That title is there because Vosk sadly goes all in on clickbait titles for his videos and bitcointalk threads, yet the information is often sadly incomplete or missing very important details.

My ETH rewards havent changed a bit either.....sadly this is just more misinformation all dolled up to look like its more than it is

[Notmetoo]

Ethereum has forked and thus implemented changes to their blockchain. ETH reduced their block reward from 3 to 2 Ethereum per block SIGNIFICANTLY reducing miner earnings.

Hey VoskCoin, seems you are wrong about the lower rewards; it has been really well the same as before the fork.

While you are correct that the rewards went from 3 to 2 coins per block, remember that the block time has also changed from 20 seconds down to 12 seconds. So unless you are mining just for one block and then turning off your gpu, the returns are the same. ie. 2/3 rewards x 20/12 time is approximately unchanged.

[swogerino]

I wonder why Ethereum mining isn't rewarding miners a bit more than it used to be. Many miners have moved to Grin or X16R algorithms which gives at least the same amount of daily income as eth mining does in Radeon cards, in Nvidia sometimes it is even better.

I don't think that forking of eth will have anything to do with gpu killing profitability.

[madnessteat]

At my RIG (2*GTX 1070 and 1* GTX 1070ti), since hard forks, the amount of ether extracted has changed from 0.2 ETH per month to 0.22 ETH. I assumed that it would be absolutely the opposite. Also, I cannot understand why the price of the ETH token has not yet risen, because in fact, when the reward decreases, the price of the token must grow.

[percy_tc]

At my RIG (2*GTX 1070 and 1* GTX 1070ti), since hard forks, the amount of ether extracted has changed from 0.2 ETH per month to 0.22 ETH. I assumed that it would be absolutely the opposite. Also, I cannot understand why the price of the ETH token has not yet risen, because in fact, when the reward decreases, the price of the token must grow.

What TOKEN are you talkin' about?? ... jeees..