NKN Mining and per block reward change over time

Nodes & Mining
#1

Recently, sharp eyed miners discovered that per block mining reward has been decreased from 11.41553 down to 11.09852. What is the reason for that?

It is because of the NKN economic model, that 300 million NKN tokens will be mined over 25 years, but with decreasing rewards. The formula is like this:

Annual NKN mining reward is 18.5-0.5T in millions, where T is the year of mining since mainnet launch and T is between 1 and 25. It is depicted in the following chart:

NKN Mining reward over years chart

The blocks generated per year is constant at about 1,576,800 blocks given 20s block interval (60*60*24*365/20). Therefore, the total mining reward in each year is:

  • 1st year (block 1 - 1,576,800): 18,000,000
  • 2nd year (block 1,576,801 - 3,1536,00): 17,500,00
  • …
  • 25th year (block 37,843,201 - 39,420,000): 6,000,000

And per block reward will be:

  • 1st year: 11.41553 (18,000,000/1,576,800)
  • 2nd year: 11.09842 (17,500,000/1,576,800)
  • and so forth
  • 25th year: 3.80518 (6,000,000/1,576,800)

It is a bit like Bitcoin mining, that it rewards early participants of the mining community. Different from Bitcoin though, the decreasing in mining reward is linear over 25 years instead of halving every four years.

3 Likes
#2
#3

Nice one thanks

1 Like
#4

Dear @zbruceli

I’m a new member and just reading through a lot of posts on the forum. I have a small, maybe stupid, question here. But how do you get to 15,768,000 blocks per year if you assume a 20s interval per block?

If I redo the calculation myself (365days/year X 24hours/day X 60min/hour X 60s/min / 20s = 1,576,800) I get a factor 10 less than mentioned in this post?

Thank you in advance!

#5

My math is bad, yours is good. :man_facepalming: I added one extra 0 to the number of blocks. Now I have updated the original post. Thanks for pointing out the error.

1 Like
#6

Thanks for the quick reply, glad my understanding was correct!

#7

Why there is that kind of shadow in the graph, do it indicate a range of values? @zbruceli

#8

I believe it is probably a formatting issue with the graph. There is no range.

On the other hand, there is Mining Bonus Address (MBA) wallet which will produce additional mining reward on top of the current mining plan. For more details, check this post:

#9

@zbruceli What’s the API call to get the exact value of one block?

#10
#11

damn that’s a big workaround, no direct call? :smiley:

#12

How about this?