Zilliqa has announced that the community proposal to halve monthly mining rewards has passed, marking a significant step as the project prepares to transition to a proof-of-stake (PoS) network.
The news boosted Zilliqa’s (ZIL) price, which surged 8% in the past 24 hours, reaching levels last seen in late September.
ZIL community adopts key proposal
Zilliqa is a blockchain network that supports decentralized applications and utilizes sharding technology. While it operates on a practical Byzantine Fault Tolerance (pBFT) consensus protocol, the network also uses a proof-of-work mechanism for node identities and shard generation.
The native token, ZIL, facilitates transactions and smart contract execution, while the governance token, gZIL, allows holders to participate in community voting.
A key milestone for Zilliqa is its roadmap to Zilliqa 2.0, a significant upgrade similar to Ethereum’s transition from proof-of-work (PoW) to PoS in 2022.
The Jasper testnet for this transition went live in early September, with the mainnet launch expected to bring changes to tokenomics, staking, and other network upgrades.
In preparation for this shift, Zilliqa has implemented a halving mechanism that will cut mining rewards by 50% each month, starting in October 2024.
The change follows a decentralized governance vote by gZIL holders, which took place between Sept. 28 and Oct. 12.
📢 We’re delighted to announce the implementation of a halving mechanism for mining rewards! This is a crucial step towards #PoS with Zilliqa 2.0. Even better, surplus $ZIL can be used for community-driven initiatives 👀 🔗 blog.zilliqa.com/zilliqa-implem…#Zilfam$gZIL#Zilliqa
3:24 pm · 14 Oct 2024
gZIL holders and community benefit
In a blog post, Zilliqa revealed that 97% of the voting power from gZIL holders supported the proposal.
Miner rewards will be reduced by half in October, November, and December, as Zilliqa continues its path toward the Zilliqa 2.0 mainnet migration.
According to the Oct. 14 announcement, the Zilliqa community will benefit from surplus ZIL tokens generated by the halving.
A portion of these tokens will be allocated to investments and incentive programs aimed at supporting the community and gZIL holders.
These initiatives are expected to provide additional opportunities for ZIL developers, validators, and builders, the team noted.
ZIL price surges 8% on positive news
Zilliqa’s price has faced downward pressure in recent weeks, alongside broader market trends and network bugs that affected blockchain performance.
In late September, the Zilliqa team announced a permanent fix for the latest bug, which had temporarily halted transactions and left users unable to access their funds.
Following the bug fix, ZIL’s price began to recover, climbing from around $0.013 on Oct. 3 to over $0.0158 as of the successful community vote on the rewards proposal.
This represents an 11% recovery since the early October lows.
However, despite the recent price surge, Zilliqa remains down over 93% from its all-time high of $0.26, reached in May 2021.
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