What is Monero tail emission

What is Monero tail emission

Monero is a decentralized cryptocurrency that provides users with a high degree of privacy and anonymity. One of the unique features of Monero is its tail emission, which is a small, fixed block reward that is added to every block that is mined. We’ll explore what Monero tail emission is and why it’s important.

What is the tail emission?

The tail emission is a small, fixed block reward that is added to every block that is mined in the Monero blockchain. Unlike Bitcoin, which has a fixed supply of 21 million coins, Monero has an infinite supply. However, the rate of new coin creation decreases over time, and the amount of new coins created each year is limited.

The tail emission was introduced to ensure that miners continue to receive a reward for their work, even after the maximum supply of Monero has been reached. The tail emission is currently set at 0.6 XMR per block, which is equivalent to about 1% of the total Monero supply. This means that even when all of the Monero has been mined, there will still be a small, fixed reward for miners who continue to secure the network.

Why is the tail emission important?

The tail emission has several important benefits. First, it helps to ensure the long-term sustainability of the Monero network. Because miners continue to receive a reward for their work, they have an incentive to continue mining and securing the network. This helps to prevent the network from becoming vulnerable to 51% attacks, which could be devastating for the Monero community.

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Second, the tail emission helps to incentivize the use of Monero as a currency. Because Monero has an infinite supply, it can be used for everyday transactions without the fear of deflation. This is in contrast to Bitcoin, which has a limited supply and is often hoarded as a store of value. The tail emission helps to ensure that Monero is used as a currency rather than just a store of value.

Finally, the tail emission helps to ensure that Monero remains decentralized. Because the tail emission provides a fixed reward for miners, it ensures that mining remains profitable for small-scale miners. This helps to prevent the network from becoming dominated by a few large mining pools, which could lead to centralization and a loss of security.

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