Halfdecayed

Halfdecayed is a term primarily used in the context of cryptocurrency and blockchain technology, particularly within the Ethereum ecosystem. It refers to a hypothetical scenario where the Ethereum network transitions to a state where the issuance of new ether (ETH) is significantly reduced due to the combination of two key mechanisms: the "difficulty bomb" and the eventual transition to Proof-of-Stake (PoS). The term blends "half" (suggesting a reduction) and "decayed" (implying a gradual decline in issuance).

The concept emerged as part of discussions surrounding Ethereum’s roadmap, particularly the shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS) via the Ethereum 2.0 upgrade (now referred to as Ethereum 2.0 or Serenity). Under PoW, miners receive block rewards in ETH as compensation for securing the network. However, Ethereum’s original design included a "difficulty bomb," a mechanism intended to make mining increasingly difficult over time, eventually rendering PoW unsustainable. This would force a transition to PoS, where validators earn rewards instead of miners.

The term "halfdecayed" was coined to describe a state where the issuance of new ETH is halved compared to the current rate, but not fully eliminated. This scenario would occur if the difficulty bomb were detonated before the full PoS transition, causing miners to abandon the network or face extreme computational costs. In such a case, the block reward would still exist, but the network would be in a state of instability, with reduced issuance and potential fragmentation.

While "halfdecayed" is not an official Ethereum term, it reflects concerns about the timing and execution of the PoS transition. Developers and the community have since adjusted the difficulty bomb’s parameters to ensure a smoother transition, reducing the likelihood of such a scenario. The term remains a useful shorthand for discussing the risks associated with Ethereum’s upgrade path.