Ethereum is currently powered and secured by a proof-of-work (PoW) consensus mechanism, which incentives network participants to solve arbitrary mathematical puzzles. The current ether inflation rate has been steadily increasing since the launch of the project, a topic that many crypto enthusiasts have often pointed out as a negative feature of Ethereum. And so I think that’s a huge boost to Ethereum’s investment narrative as a store of value and as a hedge against inflation.” Increased participation In order to successfully mine on a PoW blockchain, an individual has to make a significant capital allocation.