90% of Monero Has Already Been Mined

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As 2018 ends, 90% of all Monero (XMR) ever to exist have already been mined.

According to the current mining rate, the total supply of 18.4 million XMR will be completely mined by 31 May 2022. As of today, roughly XMR 16.6 million have already been mined. This translates into slightly over 90% of the total supply.

With just three years left to complete mining, the question that arises is what will happen to miners? Without an incentive of rewards for every block found, miners are expected to turn towards other cryptocurrencies. The resulting lower number of miners would threaten the whole network since it is they who secure the whole chain.

Monero overcomes this concern by what it calls tail emission. Essentially, even when all the coins have been mined, miners will be awarded a consistent amount of XMR 0.6 for every new block found.

The fee might seem very small compared to the current reward of XMR 3.41 per block but tail emissions will be achieved slowly, creating competition and a fall in the fee itself.

Moneropedia, the wiki platform dedicated to the privacy based cryptocurrency, describes this: “Miners need an incentive to mine. Because of the dynamic blocksize, competition between miners will cause fees to decrease.”

Challenging Bitcoin

Monero’s tail emissions claimed to be the answer to Bitcoin’s limited supply issue. By 2040, Bitcoin is estimated to have 99.8% of all possible coins mined. And with a mere 0.02% of supply left to be mined in the next 100 years, the largest Bitcoin miners will rely almost solely on transaction fees to generate income.

The Lightning Network currently being developed would mean off-chain transactions are also possible, leaving miners with one less reason to remain on the network, assuming all miners seek profit and Bitcoin price remains in tandem with the cost of mining. This may lead to miners shifting, creating an absence in the network and reducing the security of its chain.

Monero’s tail emission plan is exactly what its proponents believe will counter this undesirable outcome.

 

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