💰Incentive
The incentive system is a crucial aspect of any cryptocurrency, as it encourages participation and secures the network.
Last updated
The incentive system is a crucial aspect of any cryptocurrency, as it encourages participation and secures the network.
Last updated
In our revised Bitcoin protocol, we've made specific changes to the incentive structure, particularly in terms of block rewards and the halving mechanism.
Initial Reward: The block reward in our system begins at 50 BTC, similar to the original Bitcoin protocol. This reward is the primary incentive for miners to contribute their computational power (in the form of Solhashes per hour or SOLH/h) to the network.
Miner Rewards: The mining pool to solve the block first get's that block's reward. The higher the hashpower the Pool has available to it, the higher the chances it has of solving a block. Rewards are payed out about every 5 minutes.
Halving Interval: Unlike the original Bitcoin protocol, which halves the block reward every 210,000 blocks, our system implements halving every 42,000 blocks. This alteration significantly speeds up the rate at which the currency becomes scarcer.
Implications of Faster Halving: With a halving occurring every 42,000 blocks, the supply of new bitcoins entering circulation decreases at a much quicker pace. This accelerated halving schedule introduces a more aggressive deflationary aspect to the currency, potentially increasing its value over time as the supply of new coins diminishes rapidly.
Economic Impact: The faster halving rate, combined with the unique mining mechanism, aims to create a robust economy around the cryptocurrency. It encourages early adoption and participation in mining, as the rewards are more lucrative at the beginning. Over time, as rewards decrease, the currency's scarcity could drive its value higher, benefiting early adopters and participants.
The modified incentive system, with its unique distribution method and accelerated halving schedule, is designed to balance the need to attract and retain miners with the goal of creating a scarce, valuable digital currency. This approach aligns with the fundamental principles of cryptocurrency while adapting to the evolving landscape of blockchain technology and digital finance.