Main navigation

Important Monero (XMR) Update Kicks in Play, What to Expect

News
Thu, 06/09/2022 - 10:23
article image
Gamza Khanzadaev
Monero's (XMR) tail emission update successfully launches
Important Monero (XMR) Update Kicks in Play, What to Expect
Cover image via stock.adobe.com
Read U.TODAY on
Google News

On the verge of June 8 and 9, Monero (XMR) announced the launch of the much anticipated community-driven "tail emission" update. First of all, let's define the terminology. Tail emission is a mechanism for continuously paying rewards for computing blocks, even after the last Monero (XMR) is created. Miners will always be paid for mining XMR, and they will never have to rely solely on commissions.

The essence of the renovation is to fix 0.6 XMR as a reward for miners in every block, instead of allowing the block subsidy to go to 0, contrary to what most other cryptocurrencies, like Bitcoin, have chosen to do. The chosen number is linear, which means the possibility of reaching a 0% inflation rate in perpetuity. As a result of the update, Monero expects XMR to become a disinflationary asset whose exact supply is certain, predictable and can be projected.

Privacy is not a crime

News of the Monero (XMR) tail emission update comes days after the publication of a Reuters investigation into the use of XMR and Binance by hackers to launder stolen money and by drug dealers to clean up profits from illegal activities.

At the time, a Binance spokesperson stated that the exchange was monitoring transactions and assessing risks to "ensure that any illegal funds are traced, frozen, recovered and/or returned to their rightful owner." There was also a blog post stating that, contrary to popular belief, cryptocurrencies are not a primary method for criminals to launder funds. The post appeared on Binance before the Reuters investigation was published.

The Monero (XMR) community has said in turn that it does not endorse the use of the coin for illegal activities. It has also noted that the enhanced privacy Monero provides can be useful for a number of legitimate reasons, such as preventing corporate espionage, saving from an abusive relationship or secretly buying a gift for a spouse. The appeal ended with the eloquent phrase: "Privacy is not a crime."

article image
About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.