So the Second #Flux halving is about to happen in less than 18 days, the block reward will decrease by 50% for miner and #FluxNodes operators.
why is that important for the network? and why i think this bullish for $FLUX ?
lets talk...
@RunOnFlux
First of all, What is Halving?
• halving event occurs when the reward for mining transactions is cut in half.
• Halvings reduce the rate at which new coins are created and thus lower the available amount of new supply, even as demand increases.
#FLUX
The current #Flux block reward is 75 $FLUX per block.
The next Flux halving is approximately on February 5, 2023 and Flux block reward will decrease to 37.5 FLUX coin per block.
Block Distribution will stay: 50% POW / 50% Flux Node operators
How is this good for #FLUX?
Halving generally results in increased prices for the cryptocurrency due to reduced supply and surging demand, meaning it is good news for investors.
However, the pace of price increases differs based on the conditions of each price halving
what about Miners and Node operators?
rewards will decrease by 50% and that's a fact, and this could make miners consider moving to other profitable networks, thats for the short term only, coz halving will decrease the inflation rate of #FLUX and this...
This is where demand and supply economics come into play. While supply drops, demand fluctuates (increases or decreases), and the price changes as a result.
#FLUX is a network that provides multiple services and the main vain of it is $FLUX , so the demand will always be there..
#FLUX is one of the most innovative networks in crypto with so many exciting decentralized cloud infrastructure projects like FLUX OS, FLUX Drive, Flux Cloud and more in the pipeline (34 projects in #FLUXLABS alone).
..and the network is still under $185mil Market cap!
Node operators wont be affected much as the cost of running #FLUXnode is cheaper than any other staking option in the market, and i am not counting VPS nodes as we dont have clear benchmark for the cost, on the other hand #FLUX network should not be relying on VPS nodes.
Lets Talk Tokenomics:
#FLUX Max Supply is 440Mil coins, until now there is 287,398,579 FLUX circulating in the market, that's 65.3% , nearly half of that (43.1%) is locked in staking and nodes.
with #FLUXhalving the amount of daily new coins will be decreased by 50%, while...
while projects are growing demand will increase, less and less #FLUX will be available to obtain and pay for services, this will gradually lead to steady and organic increase in price no matter the market sentiment, as long as the technical team keeps delivering and expanding.
Conclusion:
@RunOnFlux is a revolutionary project, they are leading the tech community into decentralized cloud infrastructure for the first time since the beginning of the internet.
the task is not easy at all, but the amount of development we saw in the past 3 years can prove that the team is on the right path so far, for the long term #FLUX in a wining project for me, and one of the most important milestones will be the next #FLUXHalving.