Upcoming first Horizen halving and related details
By Inkarias - 2020-10-23
Originally, the ZEN emission was set similarly to Bitcoin as the BTC code was inherited into ZEN blockchain. The Horizen halving is the event where the reward for mining or creating new blocks is reduced by 50%, every 840,000 blocks, or approximately every 4 years. Currently set at 12.5 ZEN as reward, the halving will divide the block reward to the new value of 6.25 ZEN. The reason for this is that Horizen was designed to be a deflationary currency where coin issuance decreases over time and thus continue this vision through years. The supply of ZEN has been programmed to be known and controlled across time to fit that long-term project and idea. In short, the first historical Horizen halving will occur approximately December 1st, 2020 at block 840,000. A special page has been set to follow up the counter until the event occurs https://horizenhalving.com/.
The changes for miners and node owners
According to the halving rules, and out of the 100% total rewards, ZEN stakeholders currently receive a ZEN amount of : 20% for secure and supernodes, 20% for treasury and 60% for miners. With the halving, all block rewards will be reduced by 50%, which means the amount each stakeholder receives will be reduced by 50% as well. To explain simply and to compare, in the case of BTC, halving is a very much-hyped adjustment that reduce the rate at which new coins are created, bringing more scarcity over time for the specific asset and bringing more value on the market overall. In the same way, having less supply emission on a daily basis also helps bringing a greater value for a crypto asset as people tend to sell less on the market to hold for longer term.
Horizen halving information and preparation can be read at https://www.horizen.io/