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What is the concept of tail emission in Monero and how does it affect the cryptocurrency's supply?

avatarBrittany DawnNov 24, 2021 · 3 years ago1 answers

Can you explain the concept of tail emission in Monero and how it impacts the supply of the cryptocurrency? How does this differ from other cryptocurrencies?

What is the concept of tail emission in Monero and how does it affect the cryptocurrency's supply?

1 answers

  • avatarNov 24, 2021 · 3 years ago
    Tail emission is an interesting concept in Monero that affects its supply dynamics. Unlike other cryptocurrencies with a fixed supply, Monero has a continuous creation of new coins, even after the maximum supply is reached. This ongoing emission of new coins is designed to incentivize miners to continue securing the network. It ensures that there will always be a reward for miners, which helps maintain the security and decentralization of the Monero blockchain. However, the rate of new coin creation is very low, and it has a minimal impact on the overall supply of Monero. It is important to note that tail emission is a unique feature of Monero and may not be present in other cryptocurrencies, making it one of the factors that sets Monero apart in the crypto market.