Block Producers in Lisk (LSK Coin) Platform Experience Reward Halving
The lowered reward for the 101 block producers in Lisk platform will reduce the planned inflation.
One of the most important circulated proof-of-stake networks, Lisk (LSK), has attained a reward-halving date. In DPoS coins, the halving is quite different compared to that of minable coins. Reward in Lisk network will be lowered as per block from 4 to 3 after which it will be lowered yearly by 1 LSK until it reaches 1 LSK.
The lowered reward aims at reducing inflation gradually within the LSK ecosystem. With 10-second blocks in future, the network of 101 block producers will be competing for 8,640 LSK in a single day.
This halving event within LSK may not receive an immediate and rapid appreciation as its witnessed in the past where some coins after reward halving experienced price growth or even a short-term pump. The market price in LSK remained comparatively still with a slight rise of just 1.73% in the last 24 hours which meant it stood at $2.77 as of 12:00 UTC. LSK trading has been quite low, stuck at $5 million in 24 hours compared to the $262 million in 24 hours it achieves during peak times.
⏳📡 Block height 7,451,520 has arrived! This means that the automatic block reward reduction has taken place. Every successfully built block is now awarded 3 #LSK tokens instead of 4. 👷♂️👷♀️⛓ pic.twitter.com/rQCA4uwmvC
— Lisk (@LiskHQ) November 1, 2018
Bitcoin (BTC) market prices affects the low LSK prices as it lacks other active pairings. This factor that can be used to explain the stagnant LSK prices. Other altcoins are paired with Tether (USDT) and they portray different chart trajectories.
The fact that the LSK prices have failed to reach above $30 and its ability to bypass the predictions of triple-digit prices as Ethereum (ETH), at this point, its seen as having a speculative opportunity because of its low prices.
Even when LSK appears as a solid project, its network has revealed some flaws of DPoS coins. Current block producers in Lisk are influential to the extent that they keep voting for themselves which creates collusion. EOS ecosystem has also experienced these problems.