As a seasoned researcher with a penchant for blockchain technologies and a soft spot for underdogs, I find the recent development in Zilliqa intriguing. The decision to halve mining rewards is a bold move that reflects the network’s commitment to evolving and aligning with the broader industry trends.
The public blockchain network, Zilliqa, has initiated a fresh system that reduces mining incentives by half over the subsequent three months.
On October 14th, it was announced by the Zilliqa team that a community vote had approved a proposal to cut miner rewards in half. Consequently, the network has activated a system whereby miner rewards decrease by 50% each month, forming part of the plan for transitioning to proof-of-stake through Zilliqa 2.0.
In the next phase of Zilliqa 2.0, the network will completely shift from a proof-of-work system, where miners receive block rewards for maintaining the network’s security. Similar to Ethereum (ETH), which achieved this transition through ‘the merge’, Zilliqa is planning to transform into a Proof-of-Stake (PoS) blockchain with this upcoming milestone.
As the platform approaches its upgrade, reducing miner rewards will encourage both miners and validators to share common goals. Concurrently, during this phase, Zilliqa (ZIL) miners will transition towards backing the network by staking their coins instead.
Zilliqa miner rewards
GZIL holders voted on the proposal from Sept. 28 through Oct. 12. According to a blog post, the vote that closed on Oct. 12 had a 97% approval rate.
For October, miners get 22.25%, for November, they get 20%, and for December, they get 12.5%.
As an analyst, I can share that, according to the Zilliqa team’s disclosure, any excess ZIL tokens initially distributed to miners prior to the halving event will be channeled towards various community projects. These initiatives encompass investments driven by the community and incentive schemes designed to foster engagement.
Enthusiastic ZIL holders responded favorably to recent news, as indicated by crypto market data showing a surge of over 8% in the altcoin’s price, peaking at $0.01584 on significant exchanges. The token, nevertheless, was trading at approximately $0.01546 at the moment this was written, marking a 5% increase within the past 24 hours.
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2024-10-14 17:26