The estimation of the crypto market tells us that, by May 31, 2022, there will be around 18.4 million Monero (XMR) coins in circulation. But, if we evaluate the whole figures, then, around 90% of Monero’s XMR coins have been mined by the project already.
Monero’s Coin Mining and XMR Rewards
The data of MoneroBlocks.info, a Monero blockchain explorer, shows that the privacy-enabled cryptocurrency has released around 16.6 million Monero’s XMR coins. This emission forms equality with the supply in general. This leads the Monero project to switch to a new supply program, labelled as tail emission.
Earlier, it was announced in the project that the miners will obtain a reward of 0.6 XMR per block for mining. These rewards will be invested in the maintenance of security of the whole system and integrity of Monero blockchain.
The Moneropedia stated:
“An incentive to mine is required by the miners. Due to the dynamic competition, the competition between miners will cause a deduction of fees.”
If the mining is not gaining because of the higher costs and low rewards, then, the miner will lose their incentive and stop mining. This indirectly will affect the security of the network, says Moneropedia.
Monero, on the similar notes of Bitcoin’s working model, has reduced the supply of the Monero’s XMR tokens, which are into mining circulation. Presently, a reward of 3.41 XMR has been offered per block. It is programmed in such a manner that it will go lower with each block until a value of 0.6 XMR is reached.
Monero’s XMR Tokens: A Competition to Bitcoin?
The token supply mechanism of Bitcoin is somewhat challenged by the Monero’s tail emission plan. Bitcoin, being the leading cryptocurrency globally; both by its market capitalization and adoption, it is predicted that its network (BTC network) will mine around 21 million coins in its whole lifespan. It is assumed that by the year 2040, the cryptocurrency would have been drilled its 99.8% of BTCs. The remaining 0.2% will be spread out across the next 100 years.
The Lighting Network, an off-chain solution has also been practising by the Bitcoin network. On the Lighting Network, there is no commission being paid to the miner for settling the bitcoin transactions. If this continues, then the miners will be least interested in processing transactions on the main chain.