Block reward function in Jax.Network

1. How the block reward function aids scalability The Jax.Network blockchain network is popular for its unusual approach to blockchain technology and scalability. One signifcant diference between this blockchain ecosystem and all others is that it is governed by two native digital coins known as JAXNET (JXN) coins and JAX coins. JAX coins are mined on the shard chains within the Jax.Network blockchain ecosystem, while JXN coins are mined on the beacon chain. The reward function is executed on the shard chain, which helps stabilize the value of the coin. How the block reward function works • The two native coins in the protocol are governed by two diferent reward functions. JAX coins are issued on the shards, i.e. the parallel chains. These chains are used to operate day-to-day transactions. • Shards are merge-mined, meaning that, as a miner, you have to expect the same reward whether you mine one shard or 10 with the same amount of computing power. • Jax.Network’s unique block reward is proportional to the hashrate allocated to the network. Suppose you have 100 hash on Jax.Network, you will receive 10 JAX on shard A if you mine only one shard, 1 JAX per shard if you mine 10. • Miners who mine the beacon chain will receive a diferent reward than shards while using the same hashing algorithm and mining software. JXN has a fxed reward of 20 coins per block after fve years. What conditions afect coin minting? • Having a proportional reward to the hashrate is paramount to ensure that all shards are equal, Coin miners are usually focused on their potential profts, and therefore, they will only mine the shard chains whenever there is a need for the coins. Similarly, when the demand goes down, the miners will reduce their power contribution to the network, reducing the growth rate of coin production. The block reward function works based on the famous law of economics, known as supply and demand. • • Why is the blockchain reward function important? • The proprietary blockchain reward function is an essential part of the JaxNet protocol. The JaxNet protocol involves merge-mining coins within Jax.Network, while the blockchain is anchored to the Bitcoin ecosystem. It is essential to ensure the coins are not afected by infation or are not overused, and for that reason, Jax.Network designed their proprietary block reward function. • • JAX coins can serve their primary purpose: to become a widely adopted cryptocurrency suitable for making fast and secure online payments at a lower cost. • The reward function is a fundamental part of the entire blockchain ecosystem that governs the value of the native digital coins. It helps protect the digital coins from being unequal across shards while maintaining a proper balance of supply and demand for these coins. Are you ready to join the Jax.Network? Join Now jax.network