Why Ethereum Classic’s third “halving” is putting pressure on miner profits – DL News

Published

8 months ago

31 May, 2024

Why Ethereum Classic’s third “halving” is putting pressure on miner profits – DL News

The Ethereum Classic halving reduced token rewards paid to miners by approximately 20%.
Automatic reduction means that miners are less profitable than before.

Ethereum Classic – a 2016 fork of the main Ethereum blockchain – just completed its third halving, reducing the tokens paid to miners on the network by around 20%.

The reduction on the $4.4 billion blockchain occurred at block 20,000,001, midnight London time on May 31.

Miners now earn 2.048 ETC for each successful block they mine, up from 2.56 ETC.

Investors often view a reduction in the supply of a token as a positive: the value of the token should increase if the supply decreases while demand remains the same.

Such events can be double-edged, as they also impact the profitability of miners.

“Mining revenue will decrease if the price stays at the same level,” said Red Luo, content manager at crypto mining pool operator F2pool. DL News.

Ethereum Classic’s ETC token is trading at around $29.70, down 5.8% over the past week.

Ethereum Classic’s ETC token is ahead of the network’s third halving.

Miners typically shut down their machines when they are no longer profitable, harming network decentralization.

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F2pool manages the largest Ethereum Classic mining pool, with more than 44% of the hashrate known to the network.

Can miners remain profitable?

Some Ethereum Classic miners survive by slim margins.

With a 20% reduction in rewards, smaller miners, or those located in areas where electricity is more expensive, can stop mining because it is no longer profitable.

The reduction could also harm large, aging miners, less efficient mining machines.

Still, according to Luo, the impact should be minimal.

“We find that most popular machines can operate profitably even after the reward reduction,” Luo said, adding that the reward reduction should not have a significant impact on the network hashrate.

Hashrate is the number of hashes – or guesses – per second of all mining machines trying to solve equations and process blocks on a blockchain network.

A higher hashrate means more computing power is needed to process transactions.

This makes this blockchain more secure, as it would require more miners – and cost more energy and time – to attack the network.

How Ethereum Classic works

Ethereum Classic is a proof-of-work blockchain. It separated from the Ethereum mainnet after the DAO Hack in 2016.

As BitcoinEthereum Classic requires miners running powerful computers to solve complex equations which, once solved, allow them to add transaction blocks to the blockchain.

In return, successful miners receive symbolic rewards.

Solving these equations is difficult. Many miners choose to team up in what are called mining pools and share the rewards if one of them solves an equation.

Although Ethereum Classic is programmed to reduce token rewards by 20%, many in the community still call it a “halving” because it is similar to Bitcoin halvings.

The Bitcoin halving halves the rewards paid to miners approximately every four years.

Ethereum Classic halvings occur every five million blocks, or approximately every two years.

Tim Craig is a DeFi correspondent at DL News. Do you have any advice? Send him an email to tim@dlnews.com.

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If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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