Lisk News: Lisk Has Reduced Block Reward. Saturday, November 3rd
Lisk has reduced block reward from 4 to 3 LSK
Block height 7,451,520 was finally reached
Reward reduction has arrived for the Lisk (LSK) blockchain project. On November 1, the Distributed Proof of Stake (DPoS) network reached its block height 7,451,520 and according to the announcement by the Lisk Foundation, a decrease in reward from 4 to 3 LSK per block was planned for this moment.
“Block height 7,451,520 has arrived! This means that the automatic block reward reduction has taken place. Every successfully built block is now awarded 3 #LSK tokens instead of 4,” reads a tweet posted by Lisk.
Not a halving
There is confusion among several users as to whether or not this is a ‘halving’, due to the similarity with the process being carried out on other blockchain projects such as Bitcoin (BTC). To begin with, the word ‘halve’ means to split into two parts of equal size. It can also means to reduce something by half.
In the crypto world, when it’s time for halving, it means that the reward miners (for Proof of Concept networks) will be reduced by half. This is more notable with Bitcoin, not only because it is the most popular cryptocurrency out there, but because of the way it was programmed to cut in half the reward miners get per each block successfully mined. Last time this process took place was in July 9, 2016, when the amount of BTC earned by miners was lessened from 25 to 12.5 BTC, and the next reduction is expected for April 11, 2020.
In Lisk’s case, this cannot be called a halving, because the reward was not diminished from 4 to 2, but to 3, and each year, one LSK will be subtracted from the total amount of LSKs that can be earned by the delegates of the network (which are the ‘miners’ of this DLT), until it reaches to 1 LSK per block. This way, the project expects to prevent the asset value to suffer from inflation, and hold better over time.
As of right now, the LSK/USD exchange rate is quoted at $2.79, and its market capitalization is of $311.7 million.
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