Waves Updates Monetary System, Seeks More Decentralization

The Waves blockchain platform is moving to a self-regulating system, which will allow the community to determine the size of the reward for generating blocks and supplement of coins.

Representatives of the project note that the initiative is aimed at overcoming the deficit of WAVES tokens, since their number in circulation is limited. The use of the PoS algorithm leads to the withdrawal of WAVES from circulation, the tokens are blocked as a result of leasing, and the emergence of sidechains will block even more tokens.

The company detailed an update to protocol version Node 1.1l, which considers the mechanism of rewards for generating blocks in addition to existing transaction fees:

“Every generated block will add another 6 WAVES to the overall circulating supply, which was previously limited to 100,000,000 WAVES. The reward for block generation is to be agreed by network participants via a voting process that concludes every 100,000 blocks, or around 70 days. Block rewards can be increased or decreased by 0.5 WAVES each period or left unchanged.”

It is assumed that the new model is good for miners, as it will allow them to influence monetary policy and increase their income to estimately 5% per year.