What is tail emission and what is it for?

Every miner needs an incentive to mine coins. The fast and dynamic dimension of the block means that transaction fees are getting smaller as a result of competition between miners. If mining profitability drops due to low pay and high costs – miners will have no reason to continue to mine coins. It will directly reduce the level of security on the network. What is tail emission?

Tail emission ensures continuous development of block size and fee market. In the case of the old size of a small block, infinite demand with constant supply is likely. Due to this, the fees would increase infinitely, and only competitive factors, e.g., FIAT and other cryptocurrencies, could stop them, with no block size limit. Moreover, competitive factors reduce demand through the devaluation of cryptocurrency.

Miners increase spam to preserve the purchasing power of payments until they drop to low transaction demand. The system is unstable, which is associated with a decrease in mining income or a decrease in purchasing power from income. Tail emission ensures anchor stability beyond miners’ control. It reduces the blocking limit and the fee market, which reduces destabilization.

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