The first burnt block reward and further plans
by Maryna Trifonova, Head of Content at Jax.Network
The MainNet has been live for over a month and all its components have been working like a clock, including the merge-mining algorithm. At the moment, we have successfully burnt the first Bitcoin SV block reward and don’t plan to stop at this.
How does Jax.Network benefit from burning Bitcoin?
Burning Bitcoin is quite a controversial topic that astonishes many people. How could anyone even think of it, not to mention go all the way and actually do it? Well, every major breakthrough lies beyond common sense and requires out-of-the-box thinking. Luckily, Jax.Network appears to be one of those bold projects that stubbornly try to create a better tomorrow for all of us day after day.
So, what use does burning Bitcoin bring? Apart from obvious reduction of Bitcoin supply which is limited by 21 million coins, it also gives miners more printing alternatives by comparing the opportunity cost of mining. We call it a burn because miners have to forgo their BTC+JXN block rewards. However, this is more like a transfer of value between two mineable cryptocurrencies. Let us elaborate on that a little more.
As you remember, Jax.Network is merge-mined with the Bitcoin network to allow economic arbitrage between JAX and BTC+JXN block rewards. So, assuming that miners are profit-motivated, they will choose to issue JAX and burn Bitcoin together with free JXN, if it’s more beneficial for miners to do so. However, if Bitcoin reward is worth more than JAX, they naturally won’t burn it. After all, in both cases, miners still have an incentive to share the network hashrate with the Bitcoin network due to extra transaction fees collected from all three cryptocurrencies.
The first burnt block reward
A few days after the launch of the MainNet, we burnt the first Bitcoin SV block reward. Please follow this link for the transaction details. We are honored to be the first project to burn Bitcoin SV, and soon enough, we will have the relevant hashrate supporting our network for burning the first Bitcoin block reward together with JXN. We hope that miners will follow our lead and we will quickly move to the next stage in the development of an energy-based stablecoin.
If you are a miner and want to merge-mine our network, please find all the necessary information for starting up the mining process here or contact us via our official Telegram chat for help. Feel free to read more about the benefits of merge-mining Jax.Network with Bitcoin here.
Conclusion
We are proud to become an essential infrastructure for the Bitcoin ecosystem and part of the new generation of technology that defines the future. The first block reward has been burnt — there is no coming back!
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