Over 16 million Monero [XMR] mined ahead of new supply program “Tail Emission”
The crypto industry is going through a lean phase and the bearish trend continues to rule the market. But everything is not so gloomy after all. One of the more prominent privacy coins, Monero [XMR] seems to be a good bet on a long-term basis. Out of the 18.4 million Monero coins in circulation by May 31, 2022, the project has already mined 90 percent of it, according to a report published by CCN.
Citing Moneroblocks.info, the report says that miners have already mined 16 million units against the total supply of 18.4 million XMR.
The Monero project is going to adopt a new supply program called the ‘Tail Emission’. According to an earlier announcement by the project, the miners will obtain a consistent mining reward of 0.6 XMR per block that would likely maintain the overall security and integrity of Monero blockchain.
As per Moneropedia, “If mining is not profitable due to a high cost and low reward, miners lose their incentive and will stop mining, reducing the security of the network. Tail emission ensures that dynamic block size and fee market can be developed.”
The working of Monero project is very much similar to that of the Bitcoin and it reduces the supply of its XMR tokens that are being thrown into circulation through mining.
Monero’s ‘Tail Emission’ program is a bit different from that of the Bitcoin. According to the report, by 2040, nearly 99.8 percent of the total Bitcoin would be mined and this would leave with only 0.2% which will be mined over the next 100 years.
So, the only way for Bitcoin to maintain is that it will have to rely on on-chain transactions. Bitcoin network is already testing an off-chain solution on the Lightning Network, where users are not bound to pay commissions to miners for settling every Bitcoin transactions. And if there are no more miners, the security aspect of Bitcoin would be compromised and the network would become less secure.
On the other hand, Monero will keep the supply constant, so that the miners have real incentive to carry on with their work and after 2022 it will have a clear picture of the how the coin performs post-supply.
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