Monero’s tail emission upgrade details have been shared.
The privacy-focused cryptocurrency Monero has entered the long-awaited tail emission, which aims to provide a continuous incentive to crypto miners. The focus of the upgrade will be keeping fees affordable, providing a lower network security margin, and enabling dynamic block sizes.
According to the halving model of blockchain networks using Bitcoin and other proof-of-work algorithms, the mining reward will one day decrease to zero. Following this, the hash rate may drop drastically as the transaction fees alone will not be enough for the miners to profit. If miners lose their incentives, the security of the network can be compromised.
Monero’s tail emission aims to address this issue in order to maintain a healthy network usage. Therefore, the new upgrade is designed to allow a dynamic block size and fee market to evolve by imposing a linear fee of 0.6 XMR instead of letting the block subsidy go to zero to reduce the dependency on transaction fees.
This system is aimed to provide a healthy incentive to the miners of the privacy-focused asset and subsequently contribute to its decentralized structure. It is expected to make XMR “disinflationary” in the future, with its “perfectly known, predictable and predictable” supply.
“Tail emission means that Monero miners are not 100% dependent on transaction fees and can therefore guarantee a certain income for themselves regardless of the market. This assurance for miners is a major departure from Bitcoin’s security model”
