Ethereum

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Ethereum Classic

Ethereum Classic, a fork from the main Ethereum blockchain, completed its third <a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/">halving</a>, reducing miners' rewards by 20%. Miners now earn 2.048 ETC per block, down from 2.56 ETC. This change occurred at block 20,000,001 on May 31. 
Halvings often lead to reduced token supply, which can increase a token’s value if demand remains constant. However, they also cut into miners' profits. Red Luo from F2pool noted that if ETC prices stay the same, miners' revenue will decrease.&nbsp; 
ETC trades around $29.70, a 5.8% drop over the past week. The halving could force miners with thin profit margins to shut down, impacting the network's decentralization. Small miners or those with higher <a href="https://ultramining.com/news/en/minnesota-man-faces-accusations-of-electricity-theft-for-bitcoin-mining/">electricity</a> costs are most vulnerable. Older, less-efficient machines are also at risk, according to <a href="https://www.dlnews.com/articles/defi/ethereum-classic-halving-cuts-etc-rewards-for-miners/">Dlnews</a>. 
F2pool, which operates the largest Ethereum Classic <a href="https://ultramining.com/en/ratings/">mining pool</a>, stated that popular mining machines can still be profitable post-halving. Luo expects minimal impact on the network’s hashrate, which measures computing power dedicated to processing blockchain transactions. A higher hashrate enhances network security by making it harder to attack. 
Ethereum Classic uses a Proof of Work consensus mechanism. Miners solve complex equations to add transaction blocks to the blockchain, earning ETC rewards. Many miners join pools to increase their chances of solving equations and share the rewards. 
The Ethereum Classic community refers to these reductions as “halvings” due to their similarity to Bitcoin halvings, which cut rewards by 50% every four years. Ethereum Classic’s halvings occur every five million blocks, approximately every two years.&nbsp; 
Despite the challenges, the community remains optimistic. The reduced token supply could boost ETC’s value, benefiting those who can maintain efficient operations. However, balancing profitability and network security will be crucial as the network adapts to the new reward structure.

Ethereum Classic’s Third Halving Pressures Miners’ Profits

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