Public blockchain network Zilliqa has activated a new mechanism that will see mining rewards halved for the next three months.

On Oct. 14, the Zilliqa team announced that the proposal to reduce block rewards for miners by half has passed a community vote. As a result, the network has implemented the mechanism that allows miner rewards to diminish by 50% every month, as part of the roadmap to transitioning to proof-of-stake via Zilliqa 2.0.

In Zilliqa 2.0, the network will fully transition from proof-of-work, where miners earn block rewards for securing the network. Like Ethereum (ETH) did via the merge, Zilliqa will become a PoS blockchain with this upcoming milestone.

As the platform moves closer to the upgrade, cutting miner rewards will align the interests of miners and validators. During this period, ZIL miners will shift to supporting the network through staking.

Zilliqa miner rewards

GZIL holders voted on the proposal from Sept. 28 through Oct. 12. According to a blog post, the vote that closed on Oct. 12 had a 97% approval rate.

Miners will therefore earn 22.25% of the rewards originally earmarked for October, 20% of November rewards, and 12.5% of December rewards.

According to the Zilliqa team, the surplus tokens from the ZIL allocated to miners before the halving will go toward other community initiatives. These include allocations to community-driven investments and incentive programs.

ZIL holders reacted positively to the news, with crypto.news market data showing the altcoin’s price rising by more than 8% to hit an intraday high of $0.01584 across major exchanges. The token, however, traded around $0.01546 at the time of writing, up 5% in 24 hours.

Source : crypto.news - Oct 14, 2024