Halving on block 1,200,000

Halving on block 1,200,000

Halving on block 1,200,000

UFO (Uniform Fiscal Object) is about to go through a halving of the block reward, the inflation model for the supply of new coins is set to halve every 400,000 blocks. This results in the reward being halved roughly every one year and two months. The current reward is 1,250 coins per block, after the next halving the reward will be 625 coins per block. The total number of coins that will ever be produced is 4 billion and the current circulating supply is just over 3.5 billion, there are already 87.5% of all coins ever to be produced in circulation and the total number of new coins coming on to the market will drop from 1,200,000 coins a day to 600,000 coins.

This is the same inflation model used in Bitcoin but approximately four time faster, the long term result of this model is that the reward will drop to zero coins per block, at that point the network will be under a much higher load and the currency itself having enough value to make mining attractive for the transaction fees alone. The last 400,000 blocks that will ever a block reward will be in just a few Satsohis per block and not whole coins, this will make miners already dependent on transaction fees before the reward completely drops to zero.

As the speed of blocks is controlled by a difficulty algorithm which makes blocks easier or harder to mine, if there ever was a loss of miners due to the block reward dropping the difficulty in turn would drop maintaining an average block time. This helps maintain a steady block generation regardless of the total network hash power.

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About The Author

Peter Bushnell Cryptocurrency developer known for creating Feathercoin and later adopting UFO as well as helping many other projects launch and maintain their own blockchain projects.