Zilliqa implements monthly halving mechanism for mining rewards

Public blockchain network Zilliqa has activated a new mechanism that will halve mining rewards for the next three months.

On October 14, the Zilliqa (ZIL) team announced that its proposal to halve block rewards for miners had passed a community vote. As a result, the network has implemented the mechanism that allows miner rewards to be reduced by 50% every month as part of its roadmap to Proof-of-Stake through Zilliqa 2.0.

In Zilliqa 2.0, the network will completely transition from proof of work, where miners earn block rewards to secure the network. Just like Ethereum (ETH) did through merger, Zilliqa will become a PoS blockchain with this upcoming milestone.

Reducing miner rewards as the platform gets closer to upgrade will align the interests of miners and validators. During this period, ZIL miners will switch to supporting the network through staking.

Zilliqa miner rewards

GZIL holders voted on the proposal from September 28 to October 12. It had a 97% approval rating in voting that ended Oct. 12, according to the blog post.

Therefore, miners will earn 22.25% of the rewards initially reserved for October, 20% of the November rewards, and 12.5% ​​of the December rewards.

According to the Zilliqa team, any excess ZIL tokens allocated to miners before the halving will be transferred to other community initiatives. These include allocations to community-focused investments and incentive programs.

ZIL owners reacted positively to the news; crypto.news market data showed the altcoin price rose more than 8% to hit an intraday high of $0.01584 on major exchanges. However, at the time of writing, the token traded around $0.01546, up 5% in 24 hours.