Alephium Emission: Complete Overview

SUMMARY Alephium is the first working sharded blockchain that prioritizes smart contracts and scalability while offering improved energy efficiency and speed. Alephium has a maximum supply of one billion, just like Bitcoin, which has a maximum limit of 21 million.

Alephium is emitted, whereas Bitcoin is halved every four years to retain its value and generate scarcity. The production of alephium is comparable to the halving occurrences of other cryptocurrencies. Alephium's emission schedule, however, is dependent on the network hash rate and time stamp, in contrast to halving events that are set at a specific time. As a result, Alephium mining payouts change with every block.

In this comprehensive blog, let's examine alephium emission in more depth.

Alephium Emission Explained Alephium employs a Proof of Less Work method that is efficient. 860 million Alephium will be mined in the Alephium network. Miners receive the newly created Alephium coins as block rewards for providing resources and maintaining network security.

Alephium emission functions similarly to the halving of Bitcoin, which reduces mining rewards by half in order to battle inflation and generate scarcity. In contrast to the halving that occurs every four years, the Alephium emission dynamically modifies the block reward according on the timestamp and network hash rate.

Alephium can have a maximum value of one billion. Over 82 years, 860 million alephium, or around 86% of the total supply, will be extracted. The Genesis block for Genesis Allocation and Vesting Schedule will be used to coin the remaining 140 million Alephium, or around 14% of the maximum supply.

The hash rate and duration will determine the Alephium mining payout. For example,

Block Reward = min (time-based reward, hash rate-based reward)

The time-based mining reward progressively drops over four years, from 15 ALPH (split among 16 chains) every block period (16 seconds) to 5 ALPH. The prize will be set at 5 ALPH every block period after these four years, and after 82 years, it will drop to 0 ALPH.

Hash rate-based reward emission rate

When the hash rate remains within the [0 hash/sec, 1 Ph/sec] range, the hash rate-based mining reward increases gradually from 0 ALPH to 15 ALPH (shared by 16 chains) per block period with a minimum of 7.5 ALPH guaranteed. When the hash rate is within the [1 Ph/sec, 1 Eh/sec] range, the hash rate-based gradually decreases from 15 ALPH to 5 ALPH per block period. When the network hash rate is within the [1 Eh/sec, 128Eh/sec] range, the hash rate-based gradually decreases from 5 ALPH to 0 ALPH. Deflationary Forces Alephium has deflationary forces as well. Earlier, only 50% of the transaction fees were burned. However, now after the Leman Network Upgrade in March 2023, 100% of the transaction fees are burned. Alephium’s Proof of Less Work will demand coin burning when activated, internalizing part of the mining cost through the upfront burning of ALPH. Genesis Allocation & Vesting Schedule 80 million or 8% is designated for past and upcoming sales, with funds subject to on-chain locking upon sale and various vesting periods. 30 million or 3% is designated for ecosystem development, vesting for around 4 years in quarterly unlocks. 30 million or 3% for treasury and team, again vesting over 3 years in quarterly unlocks. Sales Allocation Vesting Alephium’s sales events are held in three phases: seed sale, pre-sale, and private sale. Alephium’s authorities confirm that a total of 62,951,077 Alephium coins were sold and locked for a varying time period of 2 to 4 years.

Below is the sales allocation vesting schedule.

The remaining 17,048,943 ALPH will be allocated to secure funding for the project’s long-term development and sustainability. These funds will be utilized over the medium to long term through various methods, including direct sales, liquidity provisioning, and OTC deals. The approach will aim to minimize market impact while enhancing the liquidity, distribution, and circulation of ALPH.