The first halving at Zcash took place today. Block reward downgraded from 6.25 ZEC to 3.125 ZEC. A major network update has also been implemented with the halving.
The first block prize halving or English equivalent halving took place today in the privacy-focused crypto currency Zcash (ZEC). The block rewards in the crypto currency, which has existed in the market since 2016, are now 3.125 ZEC instead of 6.25 ZEC.
The Zcash blockchain is designed in such a way that the mining rewards are halved approximately every four years, just like Bitcoin. This is done to prevent possible inflation caused by the excess supply of coins and to protect the value of the coin.
What has changed with Halving?
Meanwhile, Zcash developers have also released an important update with the first halving. With this change, the fifth major update of crypto money, the “Founder’s Award” mechanism, which received many criticisms, was removed. Prior to the latest update, called Canopy, 20 percent of the mining rewards were shared between the first founders of the Electric Coin Company, Zcash Foundation, and Zcash, which developed crypto money. Miners will continue to receive 80 percent of block rewards again. In the new system, 8 percent of the 20 percent slice will go to the Grand Grant Fund, which aims to support third-party developers. 7 percent will be transferred to Electric Coin Company and 5 percent to Zcash Foundation.
The next block prize halving will take place in 2024. In this halving, block rewards will be reduced from 3.125 to 1.5625.
Zcash is trading at around $ 63 after the halving.