{"id":107318,"date":"2023-07-20T16:09:33","date_gmt":"2023-07-20T16:09:33","guid":{"rendered":"https:\/\/wp.dash.org\/?p=107318"},"modified":"2023-07-30T18:33:05","modified_gmt":"2023-07-30T18:33:05","slug":"dashs-reward-reduction-model-an-innovative-variation-of-bitcoins-halving","status":"publish","type":"post","link":"https:\/\/wp.dash.org\/news\/dashs-reward-reduction-model-an-innovative-variation-of-bitcoins-halving\/","title":{"rendered":"Dash’s Reward Reduction Model: An Innovative Variation of Bitcoin’s Halving"},"content":{"rendered":"
On June 23, 2023, at block height 1,892,161, the Dash protocol successfully went through a “halving” or a rewards reduction process, wherein the overall block reward decreased from 2.49 DASH to 2.3097 DASH. So, why does this halving process happen, and how does it affect our ecosystem? Let\u2019s take a look.<\/span><\/p>\n Halving is a block reward reduction event that was hardcoded in the Bitcoin protocol by Satoshi Nakamoto himself. The idea is pretty simple. Every 210,000 blocks (around 4 years), the Bitcoin protocol goes through halving, wherein the block reward gets cut by half.<\/span><\/p>\n Unlike Bitcoin, Dash doesn\u2019t have a traditional \u201chalving\u201d event. Instead of a 50% reduction every 4 years, Dash undergoes a 7.14% reduction (around 1\/14th reduction) every 210,240 blocks \u00a0(approx. 383.25 days). The purpose here is to ensure a smoother emission rate over time.<\/span><\/p>\n To visualize this, check this graph which plots the emission rates of Bitcoin and Dash:<\/span><\/p>\n <\/p>\n Image credit<\/b><\/a><\/p>\n As you can see, Dash\u2019s model of reducing the block reward by a smaller amount each year offers a smoother transition to a fee-based economy than Bitcoin.<\/span><\/p>\n So, why do the halving process at all? Why cut down the rate of coin emission? Here are three reasons why protocols like Dash must go through the halving process.<\/span><\/p>\n The Dash ecosystem has several stakeholders, such as the users, developers, miners, and masternodes. So, how does halving affect these stakeholders? Before that, let\u2019s understand how reward allocation works in Dash. The block reward is split like this:<\/span><\/p>\n Both miners and masternodes are impacted by halving. Miners are the backbone of any proof-of-work (PoW) protocol. They buy hardware and other resources to mine blocks and incur substantial electricity bills. With reduced block rewards, miners earn less DASH for the same work. <\/span>Dash masternodes are comparatively more insulated from the effects of halving. They are not running expensive hardware and, as such, don\u2019t need to pay hefty mining-related bills.<\/span><\/p>\n So, how can miners plan ahead for halving? What are the steps they can take to make the best decision? Here are some considerations:<\/span><\/p>\n Dash\u2019s innovative approach to block reward reduction ensures smoother transitions and predictable returns for all stakeholders involved in the ecosystem, especially the miners and masternodes. This approach demonstrates Dash’s commitment to creating a sustainable and balanced network that prizes long-term growth.<\/span><\/p>\n The role of masternodes is crucial in this equation. When it comes to Dash, our masternodes are invaluable contributors to the strength, security, and prosperity of the network. Are you interested in setting up a masternode and participating in the ecosystem? As a masternode, you will be participating in decentralized governance, earning steady rewards, and contributing to the crypto revolution.\u00a0<\/span><\/p>\n So, why wait? Get started on your journey today. You can learn more about the role <\/span>masternodes play in Dash here<\/b><\/a> and <\/span>learn how to set up one here<\/b><\/a>. Do remember that you will need to lock at least 1000 DASH to operate a masternode (4000 DASH for an evonode). If the capital requirement is a bit much, then don\u2019t fret. You can always join a masternode pool via <\/span>CrowdNode<\/b><\/a>. Being a fractional owner of a masternode gives you rewards proportional to your investment.<\/span><\/p>\n Come and join the Dash ecosystem!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"On June 23, 2023, at block height 1,892,161, the Dash protocol successfully went through a “halving” or a rewards reduction process, wherein the overall block reward decreased from 2.49 DASH to 2.3097 DASH. So, why does this halving process happen, and how does it affect our ecosystem? Let\u2019s take a look. What is Dash Halving?…","protected":false},"author":66,"featured_media":107340,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[216],"tags":[],"class_list":["post-107318","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"\nWhat is Dash Halving?<\/span><\/h2>\n
What is The Purpose Of Halving?<\/b><\/h2>\n
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How Dash halving affects block rewards allocation<\/b><\/h2>\n
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In Closing<\/b><\/h2>\n