I'm here with yet another update and exciting news for NIX. I recently wrote about the upcoming switch from PoW to PoS and the current state of the testnet in case you want to read up more on the subject. With the most recent announcement, NIX published their aims to
- drastically improve the future economy
- significantly reduce the block rewards
- regulate inflation with a 40 year plan
- reduce the maximum supply
- ...and more
image courtesy of pixabay
Changes to Block Rewards
Following the transition to Proof of Stake, the Lyra2REv2 Proof of Work algorithm becomes obsolete and miners will no longer get a share of newly generated blocks. Thus, the overall block reward will be lowered and a dynamic staking reward introduced. The old and new values in comparison:
| Total | Ghost Nodes | Dev Fund | Mining | Staking | Max Supply | |
|---|---|---|---|---|---|---|
| Old | 64.000 | 17.92 | 4.48 | 41.6 | 0 | 175.0m |
| New | 12.10 | 8.442 | 1.28 | 0 | 2.35~ (dynamic) | 102.5m |
As the newly generated NIX coming into circulation decreases by a considerable margin (over 80%) along with a much reduced max supply, it would not be unreasonable to expect the coin's value to rise accordingly. Hand in hand with the revised block rewards, the team published their inflation plan.
40 Year Inflation Plan
As already mentioned in the previous section, the inflation schedule can be viewed here. I will also display the table here for your viewing convenience.
| Year | Staking Inflation | Ghost Node Inflation | Development Fund Inflation | Total Circulating Supply |
|---|---|---|---|---|
| 1 | 600,000 | 2,201,134 | 336,384 | 43,156,158 |
| 2 | 647,347 | 2,201,134 | 336,384 | 46,360,384 |
| 3 | 695,405 | 2,201,134 | 336,384 | 49,612,308 |
| 4 | 744,184 | 1,110,067 | 168,192 | 51,634,752 |
| 5 | 774,521 | 1,110,167 | 168,192 | 53,687,533 |
| 10 | 913,850 | 555,033 | 84,096 | 62,476,359 |
| 15 | 1,019,274 | 277,516 | 42,048 | 69,290,440 |
| 20 | 1,112,940 | 69,379 | 10,512 | 75,388,833 |
| 25 | 1,203,794 | 34,689 | 5,256 | 81,546,314 |
| 30 | 1,298,984 | 17,344 | 2,628 | 87,993,529 |
| 35 | 1,400,319 | 8,672 | 1,314 | 94,856,073 |
| 40 | 1,508,946 | 2,168 | 328 | 102,210,160 |
Parting Words
As always, the NIX team continues to work their hardest and deliver on time. The community is very excited and should you want to join, you can do so by following this Discord invite link. Should you have any questions regarding this article, I am very happy to answer your comments.