FAQ Question - What is the difference between Causevest Coin and Ethereum Coin Supply flows

What is the difference between Causevest Coin and Ethereum Coin Supply

Eth does not have a fixed supply

• ETH is printed to reward validators for block generation or finality generation

• ETH is destroyed when people pay the basefee to get transactions into a block (EIP-1559 mechanism)

• This makes the ETH supply non-deterministic (it depends on the amount of stakers vs the demand for blockspace) The total supply can go up or down depending on these factors.

XCV has a predictable long term supply

• XCV has an initial total supply (the amount in all genesis UTXOs + seeded in all pools/pots at genesis)

• This value never changes numerically as the “total supply” or sum over all UTXO balances + pool balances is always the same as genesis.

• XCV also has a basefee system for transactions, but these coins flow into the Network Income Pool and are redistributed throughout the network. It never changes the total supply number

We love Ethereum here at the Causevest Network! :heart:This is just a common question we get — feel free to explore more about our supply model in the Causevest White Paper.