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Monero’s Tail Emission: Everything You Need to Know

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The privacy-focused cryptocurrency Monero has entered a long-awaited “tail emission” aimed at providing a permanent incentive to miners. The focus will be on “maintaining reasonable fees, providing a lower bound on network security, and enabling dynamic block sizes.”

Protecting the Monero Network Forever

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Under the halving model of Bitcoin and other Proof-of-Work (PoW) blockchain networks, mining rewards will eventually drop to zero. After that, the hash rate of the network may decrease significantly, as transaction fees alone will not be enough to make a profit for the miners. If they lose incentive to mine, the security of the network will be at stake.

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The tail emission of Monero aims to address this critical issue in order to maintain healthy usage of the network. As such, tail issuance is intended to ensure that a dynamic block size and fee market can develop by introducing a linear fee of 0.6 XMR instead of allowing the per block subsidy to go to zero to reduce reliance on transaction fees.

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Subsequently, this mechanism is expected to help the privacy-focused digital asset provide a healthy incentive for miners while ensuring a decentralized future.

This is expected to make XMR “disinflationary” as its offering is “perfectly known, predictable and projectable” at any point in the future.


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Explaining Potential Risks and Attack Vectors in the Future Bitcoin Fee Market, Monero declared,

“This tail emission means that Monero miners are not 100% dependent on transaction fees and therefore can guarantee themselves some income regardless of the fee market. This security and guarantee for miners is a big departure from the Bitcoin security model.”

Privacy issues

The recent update comes as “privacy” remains a contentious issue in the industry. Reuters investigation earlier argued Binance acted as a “channel” to launder a whopping $2.35 billion worth of funds, and that Monero was used by attackers using the exchange.

Monero is scheduled to undergo a hard fork in July of this year to improve the underlying protocol and not lead to a split and the creation of a new coin. The upcoming hard fork is the fifteenth version of the software (v15), which will improve privacy and overall network performance.

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Credit : cryptopotato.com

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