Monero Block Rewards Falls Under 3 XMR After Hard Fork per Apollo Open Resource
Monero (XMR), one of the largest digital currencies around the world, has been involved in some controversies during the last days after a report released by Binance Research. Apparently, the digital currency could be affected by a 51% attack after the hard fork that the network conducted a few weeks ago. Now, Apollo Open Resource informs that the block reward of this digital asset has plummeted under 3 XMR per block.
Monero’s Reward Drops Under 3 XMR
There is a Redditor called Oufou08304 that informed that Monero’s block reward will be decreasing to 2 XMR as soon as in January 2020. In May 2021, the reward will decrease to 1 XMR per block. Moreover, another user informed that Monero’s reward will be dropping under 2 XMR before the end of this year.
Monero developers have also implemented a new supply program that ensures that the block rewards will never drop to zero. This emission program is expected to start as soon as May 2022. Monero will have a fixed block reward of 0.6 XMR per block. This is an incentive for miners to work and protect the network from malicious attacks. If the reward falls too much, miners would not have any incentive to protect the network.
With a dynamic block size and more competition against miners, fees would eventually be reduced in the future, allowing users transacting XMR coins to pay less for their transactions. The supply of Monero is capped at 18.4 million, and there are yet 1.6 million XMR to be created in the near future to reach that goal.
There were several users and crypto enthusiasts asking whether it would be possible for Bitcoin (BTC) to sustain its deflationary model with low fees on the network. Rewards are reduced every 4 years and miners become more competitive. Nowadays, fees make a small part of miners’ profits, thus, they would have to increase if rewards in the future keep dropping. As soon as 2020, Bitcoin rewards are going to be 6.25 BTC per block, half of the current 12.5 BTC per block.
Currently, Monero is the 13th largest digital currency in the market. It has a market capitalization of $920 million and each coin can be purchased for $54.