1. What is ETC? ETC, or Ethereum Classic, emerged from Ethereum's hard fork following the July 2016 DAO hack. Following this hard fork, the new network retained the Ethereum name and continued using1. What is ETC? ETC, or Ethereum Classic, emerged from Ethereum's hard fork following the July 2016 DAO hack. Following this hard fork, the new network retained the Ethereum name and continued using

Learn/Market Insights/Hot Topic Analysis/What is ETC Fifthening?

What is ETC Fifthening?

Jul 16, 2025MEXC

1. What is ETC?

ETC, or Ethereum Classic, emerged from Ethereum's hard fork following the July 2016 DAO hack. Following this hard fork, the new network retained the Ethereum name and continued using the token name ETH. The original network was renamed Ethereum Classic, and its token was renamed ETC. In this sense, Ethereum Classic is the precursor to today's Ethereum.

2. What is ETC Fifthening?

In September 2022, the Ethereum network's consensus mechanism transitioned from Proof of Work (POW) to Proof of Stake (POS), while Ethereum Classic (ETC) continued to operate in the POW mode, where block rewards are obtained through mining.

Similar to Bitcoin, the total supply of ETC is fixed at approximately 2.1 billion (actually 210,700,000) tokens. Additionally, ETC implements a corresponding mechanism to reduce mining rewards, decreasing by 20% every 5 million blocks.

According to the latest data, ETC is set to undergo its fourth fifthening in June of this year, with less than 100 days remaining until the reduction.

3. Previous Reductions and Their Impact

First Reduction: December 2017. Block rewards went from the original 5 ETC to 4 ETC. During the reduction period, the price of ETC continued to climb, breaking through $40.

Second Reduction: March 2020. Block rewards went from 4 ETC to 3.2 ETC. Because of the bear market, miners' profits were further eroded. Interestingly, during this reduction period, the price of ETC declined, and for a considerable period afterward, ETC hovered around $7.5.

Third Reduction: April 2022. Block rewards went from 3.2 ETC to 2.56 ETC.

In the DeFi craze of Summer 2021, a massive amount of money flowed into Ethereum. Ethereum Classic, with its intrinsic connection to Ethereum, also reached its peak price at $180. A year later, as the euphoria subsided, ETC's price saw a significant decline. Following the reduction in 2022, the price of ETC began to rebound after experiencing a three-month decline.

Fourth Reduction: Expected in June 2024. Block Rewards are set to decrease from 2.56 ETC to 2.048 ETC.

This reduction will happen shortly after the Bitcoin halving, scheduled for April. As a result, the ETC reduction is likely to occur during a bullish market, creating positive market expectations for the token's price. Based on recent performance, the price of ETC has been following the overall market trend, showing an overall upward trend.

4. ETC's Investment Value

Even though more users have shifted towards Ethereum, whether in terms of its ecosystem development or coin price, Ethereum Classic (ETC) has significantly diverged from Ethereum. However, there is still a portion of users who remain committed to Ethereum Classic. This is because of ETC's characteristics:

4.1 Decentralization

The birth of Ethereum Classic (ETC) stems from the steadfast commitment to decentralization, initially refusing a contentious hard fork that would involve human intervention to roll back transactions in order to recover significant losses from The DAO incident. This resolute belief in decentralization has been a driving force behind the rise and ongoing development of ETC.

4.2 Scarcity

Ethereum Classic (ETC) tokens are designed with a capped total supply and reduction plan similar to Bitcoin. Token production decreases over time, imbuing it with a certain level of scarcity.

4.3 Proof of Work (POW) Mechanism

The POW mechanism, since its inception with Bitcoin, has undergone 15 years of market testing, demonstrating the security of this consensus mechanism. The Ethereum Classic (ETC) development community has explicitly stated that it will not transition to a Proof of Stake (POS) mechanism like Ethereum. This decision is based on concerns that the later stages of POS development could evolve into a "rich get richer, poor get poorer" game, where latecomers would completely lose the opportunity to participate.

5. How to Purchase ETC

You can buy ETC spot on the MEXC platform.

Open the MEXC App, enter ETC in the top search bar, select ETC spot trading, click on "Buy" on the candlestick chart page, choose the order method, order quantity, and other information, then click "Buy ETC" to complete the purchase.

Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for users' investment decisions.

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