An Emission Schedule refers to the predetermined plan or algorithm governing the creation and distribution of new units of a cryptocurrency or token over time. It dictates the rate, quantity, and often the recipients of new supply entering circulation within a crypto-economic system.
Mechanism
This schedule is typically encoded within the blockchain protocol itself, specifying parameters such as block rewards, halving events, vesting periods, or inflationary/deflationary mechanisms. For Proof-of-Work systems, new tokens are issued to miners; for Proof-of-Stake, they are distributed to validators. The mechanism ensures a transparent and predictable supply expansion or contraction.
Methodology
The strategic design of an Emission Schedule significantly influences a token’s scarcity, value proposition, and network security. By controlling the supply dynamics, it aims to incentivize network participation, fund development, or manage long-term price stability. This reflects a project’s economic policy and its approach to managing inflation or deflation within its ecosystem.
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