Tellor suddenly announced that it would reduce production by 80% next year, reducing it to only 720 per day and 260,000 per year.

For more information, please see the official release:

https://medium.com/tellor/march-community-update-5fc0e5e20200

The original TRB white paper stipulates that 3,600 TRB will be produced every day. Mining requires 1,000 tokens to be pledged (technically circumvented), and there is no public fundraising. The project adopts a unique pumping mechanism, 90% of all mining rewards go to miners, 5% to project parties, and 5% to incubators such as Binance. The interests of Binance, miners, and project parties are bound together for a long time. There are 5 TRBs per block, and 3,600 TRBs are mined every day. The current circulation is about 1.1 million, and the circulating market value is about 5 million US dollars.

The linear emission set in the original white paper, without a halving mechanism, is not very conducive to the long-term price of the currency. The community and new institutions proposed amendments. After several months of research, the project team decided to make the amendments.

A few weeks ago, the project announced that it saw an opportunity for improvement and proposed two changes to the system to make Tellor successful: reducing inflation and quorum adjustment. Next year, the reward for each miner will be reduced from 5 to 1 (27.5 TRB minted per block, down to 5.5 TRB). This will reduce the inflation rate from 140% to 17%. In terms of quorum adjustment, the project will reduce it to a 10% difference for upgrading to ensure that Tellor can still be safely upgraded in the future.

We believe that the output of TRB will drop from more than one million this year to about 260,000 starting next year, or only 720 TRB per day. After launching large mining pools such as BTC.com, it is expected to receive strong computing power support. At present, since the project party suddenly announced that it will reduce production by 80% next year, the window period for mining Tellor with FPGA is this year. According to the evolution path of graphics card → FPGA → ASIC, it is likely that the AISC competition market will be next year. However, the reduction of 80% is too large, and even if ASIC is launched, the payback period will be much longer. Overall, the 80% reduction in production by the project party is just a great help to FPGA this year.