Emission Rate

Definition:

Emission rate describes the speed at which new cryptocurrency coins or tokens are created and released into the hands of the public. Many cryptocurrencies are developed such that new coins are created regularly.

The emission rate determines, or limits, how quickly these coins will be released. Typically, when a cryptocurrency is relatively new, the emission rates are high. As time progresses, this rate gradually drops until the maximum supply is reached.

Explanation:

Emission rates are typically associated with mineable cryptocurrencies. Once a miner successfully mines a block, new units of the cryptocurrency are created and issued to the miner as a reward. In the initial stages, mining difficulty is relatively low, and the rewards are substantially higher.

As more miners join the network, the difficulty increases, and the block reward is gradually reduced at regular intervals. This ensures that the currency does not become over-inflated due to excessive issuing of rewards. For example, Bitcoin’s emission rate is programmed to reduce the block reward by 50% every four years.

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