Key Insights
-
The Monero community decided to include a “minimum subsidy” or “tail emission.”
-
Monero (XMR) will introduce an upgrade dubbed “Tail Emission.”
-
The Monero Tail emission will start at block height 2641623 at 2022-06-09 00:35 UTC.
Monero (XMR) is a blockchain network that puts its primary focus on privacy preservation and has a peer-to-peer (P2P) digital currency known as XMR that is specifically designed to be entirely untraceable and anonymous.
This means that a transaction on top of the Monero blockchain cannot be linked to a specific user or real-world identity.
Tail Emission Plans at Monero: Everything You Need to Know
Monero has revealed plans for a vital Tail Emission upgrade.
Its primary purpose is to provide considerable improvements to the overall network.
Specifically, the upgrade highlights some key considerations, including measures to prevent inflated fees while also boosting the network’s overall security.
Through an official announcement posted on Twitter on May 4, 2022, Monero announced the Tail Emission upgrade.
In the announcement, they revealed that the upgrade would be rolled out at block height 2641623, which at the current mining rate, is set to occur on 2022-06-09 at 00:35 UTC, based on data by p2pool.io.
This upgrade will be specifically intended to introduce a 0.6 XMR reward distributed to miners throughout every single mined block.
As the name might imply, this is a “minimum subsidy” upgrade aimed at keeping the fees reasonable and ensuring a lower bound of network security while also enabling dynamic block sizes.
How the Upgrade Impacts Fees
As a means of getting the point across as clearly as possible, Monero, throughout the thread, uses the Bitcoin approach to explain some of the benefits found here.
Specifically, in Bitcoin’s block rewards, block subsidiaries account for 99% of the rewards, while the transaction fee covers the remaining 1%.
A miner could be discouraged instead of incentivized, reducing the network’s decentralization.
Monero’s primary goal is to avoid these issues by implementing a linear fee of 0.6 XMR. This will reduce the over-reliance on the transaction fees and will, as a result, maintain a healthy incentive for miners and will ensure the future of Monero remains decentralized.
The Tail Emissions upgrade will also enable the implementation of what is known as a “dynamic block size” feature. Miners can adjust the block sizes accordingly, which can come in extremely handy in cases where the network might experience an increase in congestion.
The block sizes can also be kept as small as possible under normal conditions.
This upgrade will ultimately lead to better network scalability and the long-term security of XMR transactions.
The Tail Emission Upgrade’s Potential Effect on XMR’s Price: Technical Indicators
On June 8, 2022, Monero (XMR) was trading at $184.70.
Throughout the last 24 hours, the trading volume of XMR/USD increased by 15%.
We can also see that the all-time high point of value for the XMR cryptocurrency occurred on January 9, 2018, when the coin reached a value of $542.33.
We have a clearer perspective that at the current point in time, the token is trading $357.63 below its all-time high value, which is a decrease of 65.94%.
When we look at the coin’s performance throughout the week, we can see that its 7-day low was $181.29, while its 7-day high was at a value of $202.20.
The current resistance point for the XMRUSD cryptocurrency is at $200, and if it manages to break past this barrier, it can climb in value to $250 by the end of June 2020.
However, to keep this momentum, it needs to avoid decreasing under $180, as that could lead to a bearish outlook.
We could also see increased activity in trading the XMR cryptocurrency at cryptocurrency exchanges.
At $184.70, Monero (XMR) looks promising, as with the Tail Emission Upgrade coming out soon, we could see a lot more usage of the network, with a lot more incentives for miners to process transactions, which could indeed allow it to break past $200 in value.
This article was originally posted on FX Empire