90% of Monero has been mined, and XMR will enter a new stage of mining

Despite this year’s bearish market environment, long-term demand for privacy coin Monero (XMR) appears to be stronger than ever.

According to the XMR browser MoneroBlocks.info, miners have mined 16,644,199 XMRs, and there are less than 4 years left before XMR enters Tail Emission. Tail Emission means that by May 31, 2022, the number of XMRs in circulation will reach 18.4 million. At that time, the XMR system will start a new currency supply phase, with a fixed output of 0.3 XMR per minute. In other words, there is no upper limit on the total amount of XMR, and this output method is to ensure that miners can always receive mining rewards.

In short, before Tail Emission officially takes effect, Monero's block reward will continue to decrease. Currently, Monero's block reward is 3.44 XMR. By 2022, Monero's block reward will eventually be fixed to 0.6 XMR (every two minutes).

Monero supporters believe that Tail Emission will make the blockchain more popular with the mining community because it will provide continuous incentives. And in the long run, continuous incentives will make the Monero blockchain more secure.

Monero supporters’ confidence stems from the limitations of Bitcoin’s incentive mechanism. Currently, the decentralized blockchain with the largest market value offers the highest block rewards to miners to protect its network security and operation. In addition, Bitcoin block operation creates a market based on transaction fees, which means that transactions with the highest transaction fees will be confirmed faster, while transactions with lower transaction fees will have to wait longer.

Bitcoin's block rewards will also gradually decrease. By 2040, 99.8% of Bitcoin will have been mined, and the remaining 0.2% will need to be produced within the next 100 years. At that time, Bitcoin can only rely on on-chain transaction fees to ensure its network security. At the same time, off-chain solutions may lead to a reduction in on-chain fees because off-chain transactions require less frequent miners.

Therefore, even though Monero's market cap is much lower than Bitcoin's, its supporters still believe that the project is very secure. After May 2022, we will see the continued development of Monero, which may even help other developers create solutions for their blockchain projects. A fungible cryptocurrency, plus Tail Emission to avoid security issues, and a currency that has been reasonably tested and proven - Monero may become a long-term solution.

Hopefully, Monero can become such a cryptocurrency.