Zilliqa

<p>Zilliqa, a leading blockchain platform recognized for its cutting-edge sharding technology, is set to overhaul its mining reward structure. Beginning in October 2024, the network will introduce a halving mechanism that will decrease mining rewards by 50% each month.</p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/14001b44f81541f2bdea4b3d9518b7a7.jpg" /><h2 id="header-0">Details on the Halving Process</h2><p></p><p>The halving mechanism, ratified through a decentralized governance vote, will see miner rewards halved in October, November, and December 2024. By the end of this phase, miners will receive just 12.5% of their initial rewards.</p><p>This incremental reduction is designed to align the motivations of miners and validators, incentivizing their support for the PoS transition and active participation in staking.</p><h2 id="header-1">Engagement and Governance from the Community</h2><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/634a8c6f0e214d5d9e8029bb3b64df61.jpg" /><p>Zilliqa to Reduce Mining Rewards Monthly as It Advances Towards PoS UpgradeThe proposal for the halving mechanism was first presented at Zilliqa’s governance forum in late September 2024 and sparked extensive discussion among community members before a vote took place.</p><p>The voting process, which wrapped up on October 12, showed overwhelming support, with 97% of voting power from gZIL holders backing the proposal. This strong participation highlights the community’s dedication to the network’s progress.</p><h2 id="header-2">Implications for the ZIL Token and Zilliqa Ecosystem</h2><p></p><p>In the wake of the announcement, ZIL, the native token of Zilliqa, saw an 8% increase, indicating positive market sentiment regarding the forthcoming changes. The decrease in mining rewards is expected to create a surplus of ZIL tokens, which will be redirected to bolster community-led initiatives, investments, and incentive programs.</p><p>These initiatives are aimed at providing further opportunities for developers, validators, and builders within the Zilliqa ecosystem. The transition to Zilliqa 2.0 represents a vital milestone for the network, akin to Ethereum’s transition from PoW to PoS in 2022.</p><p>The Jasper testnet for Zilliqa 2.0 was launched in early September 2024, with the mainnet launch anticipated to introduce significant adjustments to tokenomics, staking, and other network enhancements. The halving mechanism serves as a key step in this process, facilitating a seamless transition to the new consensus model.</p><p>Zilliqa’s choice to halve mining rewards on a monthly basis signifies a crucial turning point in its path to Zilliqa 2.0. By aligning miner incentives with the forthcoming PoS upgrade, Zilliqa aims for a more sustainable and scalable future. The robust support from the community for this initiative underscores the collective commitment to advancing the network&#39;s growth and innovation.</p>

Zilliqa Plans Monthly 50% Reduction in Miner Rewards Ahead of PoS Transition

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