Phoenix Blockchain’s Second Halving and Its Benefits.
The cryptocurrency world has witnessed two significant halving events, the first one on November 28th, 2012, when the Bitcoin blockchain experienced its inaugural halving. Recently, on June 26th, 2023, the Phoenix Blockchain went through its second halving. In this article, we’ll delve into the concept of halving and its impact on scarcity and mining rewards in the context of both Bitcoin and Phoenix Blockchain.
A halving event is a crucial occurrence in a blockchain’s lifecycle. During a halving, block rewards are cut in half, resulting in reduced mining rewards. In the case of Bitcoin’s halving in 2012, block rewards decreased from 50 BTC to 25 BTC. Similarly, Phoenix Blockchain underwent its first halvening at 2 million blocks, effectively reducing the rewards from 2 PHX to 1 PHX per block. At 4 million blocks, the block rewards on Phoenix Blockchain were further reduced from 1 PHX to 0.5 PHX.
Importance of Block Rewards
Block rewards are essential incentives for miners and nodes that actively support and secure the blockchain network. Miners and nodes are rewarded for their efforts in verifying transactions, which contributes to building and recording ongoing transactions on the respective blockchains.
Annual halving is a notable characteristic of Phoenix Blockchain, resulting in an increasingly scarce token. The halvings occur every 2 million blocks, leading to a gradual reduction in block rewards. The upcoming halving milestones are as follows:
- At 6 million blocks, rewards will decrease to 0.25 PHX per block.
- At 8 million blocks, rewards will further drop to 0.125 PHX per block.
- At 10 million blocks, rewards will be minimized to 0.0625 PHX per block.
The total supply of PHX currently stands at around 6.18 million. However, due to the halving events, the maximum supply of PHX in circulation is expected to reach approximately 8 million over the next couple years.
Halving events play a crucial role in determining the scarcity of cryptocurrencies like Bitcoin and Phoenix Blockchain. As the block rewards decrease over time, scarcity increases, potentially influencing the market dynamics. Understanding the impact of halving is essential for investors and enthusiasts alike as they navigate the exciting world of cryptocurrencies.
Disclaimer: Remember that the cryptocurrency market is highly volatile, and this article does not constitute financial advice.
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