Zilliqa Implements Halving Mechanism for Mining Rewards
With the activation of a new mechanism, mining earnings on the public blockchain network Zilliqa will be half for the next three months.
The Zilliqa team said on October 14 that a community vote had approved the plan to cut block rewards for miners in half.
Consequently, as part of the plan to switch to proof-of-stake using Zilliqa 2.0, the network has implemented a mechanism that permits miner payouts to decrease by 50% per month.
The network will completely switch from proof-of-work in Zilliqa 2.0, where miners receive block rewards for protecting the network.
This next milestone will turn Zilliqa into a Proof-of-Stake (PoS) blockchain, just like Ethereum (ETH) did through the merger.
Miner payouts will be reduced as the platform approaches the upgrade, which will better serve validators' and miners' interests. ZIL miners will switch to staking during this time to support the network.
Zilliqa Miner Rewards
GZIL cast ballots on the proposal from September 28 to October 12. A blog post states that 97% of voters approved of the vote that ended on October 12.
As a result, miners will receive 22.25% of the incentives initially scheduled for October, 20% for November, and 12.5% for December.
According to the Zilliqa team, the extra ZIL tokens that miners were given before the halving would be used for other community projects. These consist of funding for investments and incentive schemes driven by the community.
ZIL investors responded favorably to the news, as evidenced by market statistics, which showed that Altcoin's price had jumped by almost 8%, reaching an intraday high of $0.01584 across key exchanges. Nonetheless, as of this writing, the token was trading for about $0.01546, up 5% over the previous day.
