Most of the cryptocurrency market has been suffering greatly through the bearish market, leaving some investors wondering if they will come back and thrive at all. However, privacy coin Monero isn’t having the same conundrum, considering the demand for the coin going forward.
In data posted on MoneroBlocks.info, which is a chain explorer for the XMR token, miners are heavily active on the blockchain, having mined 16,644,199 units against the full supply of 18.44 million XMR. The whole supply of XMR is expected to be fulling mined by May 31st, 2022. At this point, a new supply period would start at 0.3 XMR per minute. This period would ensure that there are always enough Monero available to users without running out, which the company already described as Tail Emission in their whitepaper.
The Tail Emission would cause the rewards to reduce as blocks are mined, going from 3.44 XMR to 0.6 XMR. However, at that point, the rate will remain unchanged. The community believes that reaching this point would attract more miners, considering the ongoing incentives that 100% circulation will offer. Furthermore, the constant supply will ensure Monero’s security for the rest of the company’s lifetime.
These incentives to miners are reminiscent of the limits that Bitcoin has in mining rewards. Presently, there are high block rewards in place for Bitcoin miners, maintaining the network’s functionality and security. However, as the supply begins to dwindle, the rewards will too. Approximately 99.8% of the supply is expected to be mined by 2040, leaving 0.2% left. Unfortunately, that last 0.2% will take about 100 years before they are circulated, leaving Bitcoin to secure themselves with either dominant assurance contracts or the fees from transactions off-chain. Still, choosing the latter would not require the help of miners.
If these solutions fail, the Bitcoin’s utility and adoption reduce substantially. Monero, though, is an ongoing project that users can still rely on. After the May 2022 expectation is met, the industry will have a better understanding of the way that a post-supply coin performs, helping them with the rest of the market as well.