Monetary Policy Hard Fork explained:
You might hear about the upcoming events on the blockchain. You may wonder what is so important about it and what you need to do to be prepared for it. If you are an end user (are you are not running a node, a mining pool, a wallet nor an exchange) that supports Callisto.Network currency CLO, all you need to do is to understand what is coming with this HF (Hardfork).
We will describe the most crucial perk of it, the new MP (Monetary Policy), most simply so everyone can catch up what is intended to do with these changes.
At this moment, Callisto has a high emission MP.
When founded, Devs decided to implement this kind of block reward mainly to avoid a price collapse right after the coins were airdropped. Prevent those who were airdropped to have a dominance on the chain and with it, attract new people to mine/buy it.
Callisto.Network has achieved these goals already, and now is time to think about the sustainability of the blockchain. That is why a new MP is going to be implemented.
So, what is it about?
- In plain English, the block reward will be reduced from 600 to 360 in the first phase. This change is a must to reduce the inflation rate and to keep the coin sustainable and mineable for an extended time.
- Miners will get less CLO per block but a more valuable coin.
- Cold Staking will get a boost in every block reduction, making it more attractive for long and mid-term holders.
It will take some time to the entire ecosystem to re-balance itself and enter in a comfortable phase, but once this is achieved, we are going to have a healthier economy, and we will ensure the sustainability of the project.
Want to read more about it? Check this link (https://github.com/EthereumCommonwealth/Roadmap/issues/56), and you will find out a more deep introduction and description about it.