{"id":107318,"date":"2023-07-20T16:09:33","date_gmt":"2023-07-20T16:09:33","guid":{"rendered":"https:\/\/www.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:\/\/www.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

What is Dash Halving?<\/span><\/h2>\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

What is The Purpose Of Halving?<\/b><\/h2>\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