Halving is a crucial event in the world of cryptocurrencies, and Zcashⓩ is no exception. Zcashⓩ is a privacy-focused cryptocurrency that uses zero-knowledge proof-of-stake technology to secure confidential transactions.
What is Halving?
Halving refers to the halving of the reward miners receive for adding a new block to the blockchain. This event is designed to control inflation and ensure that the issuance of new coins is limited. In the case of Zcashⓩ, the halving reduces the reward to miners, making it scarcer and, potentially, more valuable.
⛏ The halving in Zcashⓩ is a scheduled process that occurs approximately every four years or every 1680000 blocks.
First Halving of Zcashⓩ (2020).
The Blossom update to Zcashⓩ, implemented in December 2019, laid the groundwork for the first halving of the network. While it did not halve mining rewards directly, it did shorten the block time and adjusted the per-block reward to 6.25 ZEC to maintain a stable issuance rate.
The halving, which occurred in November 2020, further reduced this reward to 3.125 ZEC per block. This event was also marked by the implementation of the Canopy update, which introduced significant changes to reward distribution. The Founder's Reward was removed and a new development fund was established.
💰 This development fund was created to ensure that Zcashⓩ had a continuous source of funding by allocating 20% of mining rewards to three organizations. Read here to learn more
Next Zcashⓩ Halving (2024).
The next halving of Zcashⓩ] is scheduled for November 2024 at block height 2726400. This halving is awaited with great interest by the Zcashⓩ community, as the reduction in reward may influence the supply and demand of the ZEC, and hence its price.
Changes that will come with the new halving:
- The block reward will be reduced from 3.125 ZEC to 1.5625 ZEC.
- The new Hybrid Deferred Development Fund will be implemented.
- A lockbox will be established where a portion of the issue will be designated for future decentralized grant funding.
- Block production without payment of appropriate commissions per share will no longer be permitted.
In addition, discussions within the community on new proposals to support the continued development and operations of Zcashⓩ are anticipated.
🤑 Interested in how mining profits will be shared and how the New Development Fund works? Read our article on NU6: New Development Fund.
The halving impacts the supply and demand of cryptocurrencies. Zingo!🍃 is your ideal partner for these moments. Store, send and receive your ZECs securely and take advantage of the opportunities that arise during and after halving.
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