Luxcoin Announces Periodic Reduction of Block Reward
As part of efforts to grow alongside its recent project progress, Luxcore has announced that it will be introducing a periodic block reward reduction. While making the announcement on Medium, Luxcore announced that it had recorded some significant progress in the development its exchange, Luxgate, as well as in Luxedge, its innovative algorithm RX2. It is therefore expedient for the chain’s reward system to reflect the recent progress.
Luxcore will be introducing a 1% block reward reduction for every 125,000 blocks. The reward reduction will start after the 1 millionth block, meaning that the first reward reduction is expected to happen at block 1,125,000.
The Luxcore team explained that its decision to reduce the block reward by 1% periodically is to prevent any disruptive market actions in its network. They noted that speculators could capitalize on the reward reduction (as in the case of Bitcoin and many other cryptocurrencies) to drive up the price and dump after the event. Additionally, miners may decide to dump the network for a more profitable project, forcing the hash rates to drop and possibly compromising the security of the network.
By implementing these small and gradual changes to the block rewards we’re avoiding the possible negative market impact while still providing a fair chance for the entire crypto community to participate. We are very happy with these upcoming changes and we’re confident our community will be too.