A Public Blockchain Network Zilliqa Will Reduce Rewards for Miners

Zilliqa, a public blockchain network, has implemented a new mechanism that will halve mining rewards over the next three months. The change comes after a community vote where 97% of GZIL holders supported the proposal to reduce block rewards for miners. This step is part of Zilliqa’s broader plan to transition from its current proof-of-work (PoW) system to proof-of-stake (PoS) with the launch of Zilliqa 2.0.

In this upgraded Zilliqa 2.0 system, the network will completely shift from PoW, where miners are rewarded for securing the network, to PoS. Much like Ethereum’s transition to PoS through “the merge,” Zilliqa’s upcoming upgrade will transform it into a PoS blockchain. As a result, miners will see their rewards reduced each month leading up to this transition, which aims to align the interests of both miners and validators in the new PoS model.

For the next three months, mining rewards will be gradually reduced. In October, miners will receive 22.25% of the rewards that were originally allocated, followed by 20% in November, and 12.5% in December. This reduction is designed to encourage miners to shift from mining to staking as the network nears its PoS milestone.

The surplus tokens that would have gone to miners under the original system will now be redirected to community initiatives. These include funding community-driven projects and providing incentives through various programs. This reallocation of resources aims to further strengthen Zilliqa’s ecosystem by supporting activities that drive the network’s growth and sustainability.

The news of reduced mining rewards has been met positively by ZIL holders, with market data from crypto.news showing a price surge of over 8% for the ZIL token. At its peak, ZIL reached $0.01584, before settling around $0.01546, reflecting a 5% increase in 24 hours.

As Zilliqa continues its transition to PoS, this halving of mining rewards is a crucial step toward its long-term goal of enhancing network efficiency and security through staking. The move not only reduces the energy-intensive PoW mechanism but also opens up new opportunities for the Zilliqa community, with the surplus rewards being reinvested into projects that can drive further innovation and adoption.

With Zilliqa 2.0 on the horizon, the network is taking bold steps to prepare for the future. The halving of miner rewards is just one of many changes aimed at positioning Zilliqa as a competitive player in the blockchain space, focusing on sustainable growth and community-driven development.

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