Monero [XMR] block reward plummets below 3 XMR per block

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Monero [XMR], the thirteenth largest cryptocurrency by market cap and leading privacy coin, made headlines early this week following Binance’s report on the implications of its hard fork. The coin is again in the news over its decreased block reward. According to data presented by Apollo Open Resource, Monero’s block reward plummeted below 3 XMR per block.

Source: Apollo Open Resource

Oufoul08304, a Reddit user, stated the block reward will decrease to 2 XMR in January 2020 and 1 XMR in May 2021. This will be followed by the start of tail emission in May 2022.

Another user contradicted this statement however, remarking that “we will actually be below 2 XMR/block for the Coinbase reward in December of this year.” This is considering the current emission and emission schedule.

Tail emission is a new supply program introduced by the Monero team to ensure that the block rewards “never” drop to zero. This is scheduled to commence around May 2022, where the block reward will be fixed at 0.6 XMR per block.

According to GetMonero.Org, this supply program was started because miners “need an incentive to mine,” as “the dynamic blocksize and competition between miners will cause fees to decrease.” It further stated that miners would stop mining if it was no longer profitable because of the high cost and low reward, resulting in low security of the network.

Further, the total supply of Monero [XMR] in circulation is set to be 18.4 million and based on the data presented on Moneroblocks.info, 16.8 million coins have already been emitted, leaving around 1.6 million coins.

Bitcoin1776, another Redditor said,

“[…] How many XMR / day are created? Should be 2,160 XMR (2 min block) x 52.84 = $114k / day = 4.67% ETH is 4.25% – BTC is moving to 1.8% The advantage of XMR is annual equals $42 Mil vs $2.6 Bil (BTC) & $600 Mil ETH. Accordingly, ETH should be about 13x popularity of Monero and BTC about 62x popularity, for prices to be accurate.”

Ant-n, another Reddit user commented,

“Indeed sustained low block rewards will be a challenge.. AFAIK no cryptocurrency has entered this new « state » It seems Monero might be the first one. My anxiety level will be high in 2021:) PS: I expect it to be a big reality for bitcoiner.. going zero rewards might not be possible..”


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Priya

Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

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