Developers on Ethereum’s GitHub have published update on Friendly Finality Gadget Casper (FFG Casper) which is also known as a hybrid PoW/PoS upgrade.
Most important part of this release is change in block reward for Ethereum miners which will be reduced by staggering 80%, from current 3 to 0.6 ETH per block.
“In this proposed spec for stage 1 Casper, Ethereum will transition from pure proof of work to hybrid PoW/PoS.
In this scheme, all of the proof of work mechanics will continue to exist albeit with a reduced block reward (0.6 ETH), but additional proof of stake mechanisms will be added.
In particular, the fork choice rule (ie. the way that a client determines which chain is ‘the canonical chain’) will be modified to take these mechanics into account.”
It is still unkown what will be the block reward for stakers who will use PoS as consensus mechanism.
If the overall reward remains the same, that could mean stakers could get 2.4 per “mined” block. However, it is more likely their reward will be far smaller as well. That assumption is even more realistic when we take into account that once full Sharding upgrade is implemented, the overall reward for block producers will be 0.22 ETH, as stated by Vitalik Buterin himself:
“Currently, an expected value is 10 million ETH staking at 5% interest, which is 500,000 ETH per year (~0.22 ETH per block).”
There’s quite some way to go until then, with implementation likely to be in stages, potentially starting with FFG Casper which is currently on testnet.
An update on how that’s going is expected on April the 6th during the weekly meeting of ethereum developers when a time estimate might also be provided.
Casper is a partial consensus mechanism combining proof of stake algorithm research and Byzantine fault tolerant consensus theory. We introduce our system, prove some desirable features, and show defenses against long range revisions and catastrophic crashes. The Casper overlay provides almost any proof of work chain with additional protections against block reversions.