Gradual Mining

Access essential crypto terminology relevant to Grant Programs, enabling clear communication and understanding of funding processes and blockchain concepts.

Gradual mining refers to a mining approach where new tokens or coins are generated at a controlled and decreasing rate over time. This method contrasts with traditional mining, where rewards may remain relatively stable. By reducing the issuance rate, gradual mining aims to combat inflation and create scarcity, potentially increasing the value of existing coins.This process is often built into the code of the blockchain, outlining how many coins will be released at what intervals. Typically, gradual mining might involve halving events, where the reward for mining blocks is cut in half after a specific number of blocks are mined.Gradual mining can create a more predictable economic environment for a cryptocurrency. It encourages early participation while ensuring that new coins are not introduced too rapidly, preserving the integrity and value of the currency over time. Such a model appeals to investors looking for stability and potential value appreciation as the supply becomes more limited.

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