HYCON Mining Distribution
HYCON Mining Schedule Primer
The mining schedule for HYCON is based on a linear decrease over time of the tokens allocated per block.
The initial HYC reward for mining a block will be 8 HYC.
This translates to an initial influx of ~250 million HYCON per year over the first period.
After a period of time which is roughly every 6 years and 2 months, the reward will decrease by 1 HYCON until the cap of 10 Billion is reached after just under 50 years. We decided to decrease reward linearly as opposed to Bitcoin’s geometric distribution, to provide a more balanced distribution of coins over the mining period and avoid severe decreases to the economic incentives for miners, as seen with Bitcoin’s halving model.
At this mining rate a miner with a 1% share of the network hash power could expect to see a return of 6912 HYC per day ($622 based on ICO price) as a base reward.
With 4 Billion HYCON having been minted in the Genesis block, with 1 Billion of those set to be burned, this distribution model sees an inflation rate of 8% of existing HYCON within the first year. However not all of these coins will be in circulation initially, as there are lockup periods on the team allocation and presale allocations.
The Cryptonight algorithm is being used for HYCON mining currently, however in the interest of decentralization of mining resources and mass participation, following the example of Monero and Vertcoin, the algorithm can be altered slightly at regular intervals to prevent ASIC dominance of the network hashpower.
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