Question 1

What is halving/reduction?

Accepted Answer

Halving and reduction are the process of reducing the rate at which new cryptocurrency units are generated. Specifically, it refers to the periodical halving and reduction events achieved through block reward cuts.

Question 2

Why are halving/reduction events significant?

Accepted Answer

Halving and reduction are at the core of the cryptocurrency economic models. They ensure tokens will be issued at a steady pace, following a predictable decaying rate. This controlled rate of monetary inflation is one of the main differences between cryptocurrencies and traditional fiat currencies.

Question 3

How is our timer calculated?

Accepted Answer

To avoid constant fluctuations in our timer, we use theoretical average block time to calculate when the halvings/reductions occur. Our timer is calculated using the following formula: (Halving/Reduction block – Next block height) × Average block time – Estimated time for the next block.