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Crypto News

Wemix Blockchain Opts for a New Strategy: No More Block Minting Rewards

Author

Jay Solano

Tags

Tags Editor's Choice / Slider Posts

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice / Slider Posts

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice, Slider Posts

Reading time

2 mins
Last update


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Change in Tokenomics

Wemix, a South Korean gaming blockchain, is strategically shifting its token distribution. The blockchain, known for its WEMIX token with a significant market cap, announced the discontinuation of block minting rewards. This change, set to be implemented by the end of Q1 2024, aims to stabilize and enhance the WEMIX token’s practical and fundamental aspects. The move is expected to maintain or reduce the total supply of WEMIX tokens from the block height where the change takes effect.

New Approach to Token Distribution

With an existing annual inflation rate of 3.15%, Wemix is transitioning towards a deflationary economy. Removing block minting rewards and the token burn from network gas fees are central to this strategy. In place of block minting rewards, WEMIX tokens held by the Wemix Foundation will be distributed as incentives to the community and decentralized application developers. This new distribution method will be sustained for approximately 20 years, indicating a long-term commitment to the blockchain’s ecosystem.

Impact and Future Developments

This pivotal decision necessitates a hard fork in the Wemix blockchain. The change aligns with Wemix’s parent company, Wemade’s, recent initiatives, such as launching a $100 million Web3 fund in collaboration with Whampoa Digital and establishing a presence in the Dubai International Financial Centre Innovation Hub. Wemade, creator of the Legend of Mir series and the successful blockchain game Mir 4, continues to expand its influence in the blockchain and gaming sectors. This strategic shift in Wemix’s approach reflects the evolving landscape of blockchain economics and the growing importance of sustainable tokenomics in the industry.