Monero, a privacy-focused cryptocurrency, has entered the eagerly awaited “tail emission”, which aims to offer a permanent incentive to miners. The goal is to keep fees low, maintain network security at a lower level, and allow dynamic block sizes.
Securing Monero Network Forever
The halving model for Bitcoin and other Proof-of-Work blockchain networks (PoW), will eventually lead to the mining reward dropping to zero. As transaction fees are not enough to pay for the miner’s profits, the network hashrate may drop significantly. The network’s security could be compromised if they lose the incentive of mining.
Monero’s tail emissions aims to address this crucial issue in order to maintain healthy network usage. Tail emission is a mechanism to make sure that a dynamic block size can be established and a fee market can develop. It implements a linear fee at 0.6 XMR, instead of allowing block subsidies to reach zero in order to reduce the dependence on transaction fees.
This mechanism will help to ensure a decentralized future and privacy-focused digital asset.
This will make XMR “disinflationary”, with its supply “perfectly predictable, predicted, and able be projected” at any time in the future.
Monero explained the possible risks and attack vectors in Bitcoin’s future fee market.
This tail emission indicates that Monero miners do not rely on transaction fees 100% and can therefore guarantee a specific income regardless of market conditions. This is a significant departure from Bitcoin’s security model.
As privacy remains a controversial topic in the industry, the recent upgrade is a welcome development. Reuters earlier reported that Binance was used as a conduit to launder money worth $2.35 trillion and that Monero was exploited by unsavory actors who traded on the exchange.
Monero will undergo a hardfork in July to improve its base protocol, and not to result in the creation or splitting of new coins. It will be the fifteenth software release (v15), which will improve the privacy and overall performance of the network.
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