Gentarium to Hold Referendum on Block Rewards
As a result of the current downward pressure on the price of their GTM utility token, masternode hosting service Gentarium have proposed an early reduction to the current block rewards for GTM masternode owners.
Based on the current GTM price and demand, Gentarium advise that according to their calculations, a 50% reduction in the block reward will sufficiently reduce GTM emissions enough to stabilize the price.
Some arguments that have been raised in the alternative include that the cost of maintaining demand from new investors with the existing ROI does not outweigh the benefit of supporting the current price by reducing supply.
Other members of the Gentarium community have pointed out that there is a 50% reduction in the block reward due to take place in the next few months in any event and it may be preferable to simply wait for that instead of bringing the halving date forward.
The Gentarium project clearly accept there are various potential scenarios that may be proven in future and made a range of voting options available to their community. Investors in Gentarium holding GTM on the platform can read the full announcement and vote on one of the following four options here:
- Block rewards stay the same
- Block rewards be reduced by 33%
- Block rewards be reduced by 50%
- Block rewards be reduced by 66%
Votes are weighted based on the amount of GTM held by the user on the platform across their full nodes, shared masternodes and deposits for paying hosting fees. At the time of writing, the votes cast so far have used 1,039,871 of the total number of GTM coins held on the platform.
Although the vote is for what, if any, changes should be made to the block reward now, Gentarium have confirmed in their Discord channel that changes to the staking rewards will proceed even if it is decided there be no changes to the block rewards at this time.
In view of the fact that the vast majority of our users are not miners, but invest in MN, regardless of vote we will significantly reduce PoS rewards
Voting is open until 10 March 2019 and if the Community does vote in favour of a reduction to the block reward, the Gentarium Team confirm the halving previously scheduled to take place would then not go ahead.