Introduction
As Ethereum prepares for its historic transition to Proof-of-Stake (PoS) through 'The Merge,' we take a data-driven look back at its 2014 crowdfunding campaign—analyzing how initial ETH distributions have evolved and what this means for today's supply landscape.
Key Takeaways
- The Merge represents Ethereum's most significant protocol upgrade, replacing mining with staking.
- 2014 Crowdfunding distributed 60M ETH to 8,893 addresses over 42 days.
- Current Genesis Holders control just 2% of total ETH supply (down from ~10% at launch).
- New Monetary Policy post-Merge will fundamentally alter ETH issuance rates.
The Road to The Merge
Vitalik Buterin recently confirmed at EthCC Paris that Ethereum's 'Merge' is 90% complete, with final testing underway on Ropsten. This transition will enable validators to withdraw staked ETH from the deposit contract while introducing:
- Validator rewards for block creation/verification
- ~90% reduction in energy consumption
- Revised tokenomics affecting ETH issuance
ETH Crowdfunding: A Retrospective
Campaign Mechanics (July 22 - Sept 2, 2014)
- Early-bird incentives: 2,000 ETH/BTC (first 14 days) vs. 1,337 ETH/BTC (final rate)
- Total raised: 31,000 BTC ($18.3M USD)
- ETH distributed: 60M (83% of genesis supply)
👉 Explore Ethereum's growth since 2014
Supply Allocation at Launch
| Category | ETH Amount | % of Total |
|---|---|---|
| Crowdsale | 60M | 83.3% |
| Early Contributors | 6M | 8.3% |
| Ethereum Foundation | 6M | 8.3% |
Current Supply Distribution
Genesis Holder Trends
- 92% of original addresses have moved their ETH
- Top holder: 347K ETH (~$530M at current prices)
- Inactive accounts: 693 addresses holding 250K ETH collectively
Post-Launch Issuance
- 500M new ETH minted via PoW mining since 2015
- Total supply: ~120M ETH (2.2x genesis supply)
FAQs
Q: How does The Merge affect ETH supply?
A: PoS reduces new ETH issuance by ~90% compared to PoW—potentially making ETH deflationary during high network activity.
Q: Could early ETH holders manipulate the market?
A: Unlikely. Genesis accounts now control just 2% of supply, with most ETH redistributed to new addresses and exchanges.
Q: What was the average crowdfunding purchase?
A: 3.65 BTC (~7,000 ETH)—though purchases ranged from 0.01 to 500 BTC.
👉 Learn about staking post-Merge
Conclusion
As Ethereum enters its PoS era, understanding its supply origins provides crucial context for:
- Decentralization metrics: How initial distributions evolve
- Staking economics: Validator entry requirements
- Long-term value: Scarcity dynamics post-Merge
With over 85% of circulating ETH held by addresses created after 2017, Ethereum's journey from crowdsale to global settlement layer continues to redefine open finance.