Chia production reduction plan explained

As Chia approaches the time of opening free transfer, the computing power of the entire network is increasing rapidly. According to relevant data, as of April 29, 2021, the computing power of the entire network has reached 1143.81 PiB, and 403,654 XCH have been produced. Compared with a month ago, it has achieved a qualitative breakthrough.

As the computing power increases in the later period, the difficulty of blocks will continue to increase. Chia adopts a production reduction mode to release in line with Bitcoin. This article will explain the Chia production reduction plan in detail through detailed data comparison and analysis.

XCH is Chia's token. Currently, the only way to obtain XCH is through mining in the primary market. In Chia's storage network, there is no upper limit or any restrictions on the total amount of XCH produced through mining. Chia's mining reward plan directly imitates the reward model of processor calculation tokens.

Due to fluctuations in the space joining the network and the increase or decrease in the speed of Timelord, the actual issuance schedule will fluctuate like the POW consensus mechanism. Chia officials will add a time adjustment coefficient based on its historical situation to make the mining rewards eventually closer to the ideal model.

According to the design of the Chia network, in the first three years after the mainnet is launched, the output is 64 XCH every 10 minutes, shared by 32 miners, that is, each miner has 4,608 chances to win every day, and then decreases in batches.

Chia Mining Reward Quantity Model

The release schedule of the Chia storage network is called the release plan, which adds significant security advantages over the capped supply and allows transaction fees and block release to reach a balance.

Chia plans to generate 42% of all XCH at the end of the sixth year after launch, with all mining rewards generated up to that date.

From the launch of the mainnet, it will take approximately 21 years for mining rewards to equal the size of the Chia network’s strategic reserve, as trailing emissions will begin to slow down in the 13th year.

The specific schedule is as follows:

Chia's release schedule for the first thirteen years

Chia's 13-year production reduction release schedule

From the above table, we can see that Chia will start to slow down mining rewards in the thirteenth year, when the computing power of the entire network will reach a relatively stable state. When the mining rewards are carried out to the twenty-first year, the XCH mined by the entire network will be equal to the Chia official strategic deployment storage.

As the computing power of the entire network continues to increase, the mining difficulty is expected to continue to increase in the future, and the XCH produced by miners in proportion will decrease accordingly. Therefore, in this battle against time, the earlier the miners join, the more likely they will get more rewards.

As the time for Chia to open transfers approaches, major exchanges have launched XCH futures and a crazy bullish sentiment has emerged. Prices have soared and off-market sentiment continues to ferment. I believe that after XCH is officially launched, the market will become even more popular.