More than 90 percent of Monero block rewards have already been mined

More than 90 percent of Monero block rewards have already been mined
Dec 20, 2018 by Rico Wise

According to the data provided by MoneroBlocks.info, which is an explorer of Monero’s own blockchain platform, the privacy-focused digital currency currently accounts for emission of nearly 16.6 million XMR tokens. As the number that of the total supply, Moner intends to transition to another supply initiative called tail emission. Monero’s previous announcements display that cryptominers will get a stable reward for their mining activities at 0.6 XMR/block, which would possibly sustain the overall security of the blockchain platform and keep its integrity in place.

In the event that cryptomining activities yield little profit because of increased costs and small rewards, cryptominers will lack motivation and cease cryptomining, jeopardizing the platform’s security. Same as BTC working model, Monero additionally cuts the supply of its XMR coins, which entered the circulation via cryptomining. Currently, Monero promises 3.41 XMR/block reward, being set for decline with each consecutive block mined, up to the point when it hits the said 0.6 XMR.

The tail emission initiative of Monero tries to throw a challenge towards the coin supply system of BTC, whose network has a total of 21 million coins to mine. By 2040, as much as 99.8 percent of all BTC coins will have been mined, with the remainder of 0.2 percent being spread out over the next century.

Thus the only means for BTC cryptominers to get any motivation is through the on-chain transaction charges or via dominant assurance contracts. BTC blockchain is already utilizing an off-platform solution with Lightning Network, with customers not having the necessity to settle commission fees to cryptominers in return for BTC transaction settlement. Should such practice continue existing as a long-term solution to BTC scalability, the cryptominers would at least get their incentive from transaction confirmation on its main blockchain platform.

Without the cryptominers, the BTC blockchain would lose its security by a certain margin due to the fact that it was miners who were responsible for keeping it resilient. However, Monero intends to maintain the consistency of its supply in order to motivate the cryptominers for life. This makes it evident that the privacy-oriented digital currency is getting ready for a long game, probably to become one of the few digital currencies to take Bitcoin’s place should it fail to find a solution.

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