The summary of announcement is as follows
SERO has passed community and foundation resolutions in the evening of 18th February 2020, announcing that the remaining half of the unmined coins are about to be burned. SERO ’s consensus is a hybrid PoW / PoS consensus. The mineable supply is 800 million SERO, and the total supply needs to be divided into 101 years to complete the entire emission. Considering that the current theoretical mining emission has reached about 180 million SERO, which means that the remaining 620 million will be burned by 310 million. Due to the difficulty of computing power, more than 40 million SERO have already been destroyed. Therefore, the theoretical total supply of SERO will be sharply reduced from 1 billion to 650 million. And the entire emission cycle will be adjusted to 97 years. The fork will complete by 2020.2.29
“In any case, this burn will significantly reduce SERO’s inflation rate.”
How to understand this burn?
As the time for halving the supply of Bitcoin is approaching, authoritative agencies have counted some of the more influential halving currencies this year, a total of more than 10, including SERO, which is about to complete the natural deflation halving in April, but before the halving in April, SERO passing such a resolution to burn the total supply, is it the best choice for a long term, or is it just a bold decision to reduce supply purely for the purpose of reducing emission? What is the logic behind this article? This article will start an in-depth analysis. First of all, we must accurately understand the actual results of the burn.
SERO is a well-known privacy public chain that has more and more extensive influence. Especially in China where it has a good user base. The total supply of SERO is 1 billion, of which 800 million is PoW / PoS mineable(SERO has Hybrid consensus, where PoW generates the blocks and PoS verifies them). The hyrbid consensus of SERO itself has a more interesting supply mechanism, i.e, the amount of computing power can determine the number of block rewards. According to the current maximum reward of a block is 71.2 / block, but the actual emission is not so much and the rest are burned (real-time burn count can be seen on explorer: https://explorer.sero.cash/). According to the information collected from the SERO block explorer, under the function of this burn mechanism, SERO has now destroyed more than 48 million coins as of 2020.2.18, 1:00 PM.
The burn of the resolution passed this time is technically represented as a direct halving of the largest block reward,i.e, the maximum block reward will be directly reduced from 71.2 / block to 35.6 / block, and the remaining coins will enter the burn address, so as the rest of the coins are not left available for future emission, but are directly burned. If the corresponding ratio of the difficulty mechanism mentioned above is kept in sync, the direct result of this upgrade is the total burn of about 350 million SERO.
According to the inflation level of SERO (current circulation on the explorer is about 230 million), and the maximum emission in a year is about 160 million, and the inflation rate has reached 69%. Therefore, under the effect of this burn and halving in April, the highest inflation level will be directly reduced to about 17%, and then adjusted according to the current computing difficulty, the actual inflation should be about 10%.
The inflation rate of about 10% is still not a very low inflation rate among the major crypto currencies.
Causes and process of resolution
The SERO block emission was originally scheduled to be halved in late April this year, but a member of the foundation and a number of existing community members jointly launched a proposal to take into account that the current inflation level is too high and the existing ecological supply is actually in a state of oversupply. In order to allow important development time for ecological launches, a formal proposal is proposed to reduce emissions by half by the end of February.
SERO co-founder Jason.Pope once stated, “In the SERO public chain ecosystem, hundreds of tokens and DAPPs have been developed, and some of them have shown a good development trend, and some potential ones can also be seen. The development direction gives more practical value to the token. Compared with the original forecast, we can make more accurate estimates of the demand for SERO coin in the future and even a longer period of time, effectively by adjusting supply, thereby making more favorable choices for ecological development.
The main factors that will be considered here include: the corresponding market demand behind the practical value of SERO, the current market circulation supply value, the potential supply-demand relationship trend, the relationship between existing block rewards and network security after emission changes, and so on. “
Therefore, I believe that in fact, the SERO Foundation didn’t think about this burn out of nowhere, but it was a deliberate result. The main basis is to evaluate the rationality of the emission according to the actual demand for the token generated by the ecology. In fact, most projects are designing the initial inflation level it is impossible to predict the progress of ecological development, and timely adjustment of the inflation level has a positive effect from the perspective of traditional monetary economics.”
Subsequently, the SERO community initiated a vote using the decentralized voting application “VOTE” developed based on SERO, which unexpectedly won more than 80% of the votes. Then the SERO Foundation went through a complete resolution meeting process and carefully an assessment of the impact of burn on a number of factors, including cybersecurity, it was finalized to allow the proposal to pass.
In total, the SERO Foundation has more than 20 members from community leaders and technical elites from around the world, including China, South Korea, India, Australia, and the United States to participate in SERO’s community governance together.
How the SERO community views this burn
After the resolution was passed, the SERO community continued to have a heated discussion on this brun, and it is generally believed that this proposal is reasonable. After successively reducing emission and halving, the inflation level of SERO will reach a reasonable level, and the inflation rate of 10% to 12% is consistent with some other major currencies. Among them, the PoW part, because of the improvement of SERO’s fundamentals and market value, its profit is still considerable, while the PoS part, its moving average 12-month annualized interest is about 10–12%. At present, the annualized interest rate of mainstream PoS currency Tezos is about 8%, the annualized interest rate of EOS is about 4%, and the annualized interest rate of TRON is about 9%. SERO’s annualized benefits are still very competitive.
Considering that SERO, as an emerging project, has always shown its aggressiveness and continuous market enthusiasm, and has outstanding performance in the process of ecological launches, it is generally optimistic about the follow-up influence community of this adjustment.
What is SERO?
SERO is a public private blockchain that has been online and has been running steadily for a year. Unlike most projects, it has not conducted an ICO. SERO is not only the world’s first privacy digital currency that supports Turing complete smart contracts, but also the world’s first privacy protection platform that allows developers to issue anonymous digital assets by themselves, which allows decentralized applications to have privacy protection functions. SERO independently developed the world’s fastest zero-knowledge proof crypto library Super-ZK, and its security performance far exceeds the current major privacy coins. It is by far the most perfect blockchain privacy protection solution. SERO is an important milestone in the development of the blockchain industry. SERO platform support issuance of Token, Ticket, and Packages. Not only can they be used as anonymous digital assets, but they can also be used to store complex data structures with privacy requirements. More commercialization, while ensuring that commercial sensitive information is not leaked on the blockchain.
Due to SERO’s pioneering technological achievements, SERO is currently the highest-ranked blockchain project in the search rankings. It has continued to be in the forefront of hot search on mainstream platforms.
Cryptocurrency market long-term bull market has arrived
Will the current rally continue? This is a question that surrounds every investor’s heart. After all, everyone has experienced a bumpy and ups and downs in 2019. The entire blockchain industry experienced too many setbacks in 2019, such as industry layoffs, token issuance and policy restrictions. But the cryptocurrency market has its own internal economic mechanism, and the arrival of bulls and bears is by no means accidental.
The following facts have emerged in the cryptocurrency field:
- Halving of major mining coins
Bitcoin and some other mainstream mining currencies will be halved in 2020. The chart below shows the halving of mainstream cryptocurrencies in 2020, and we can see that SERO is also on the list.
2. Large-scale commercial launch
In history, both the rapid development of Bitcoin as a currency payment system and the widespread application of Ethereum as an ICO have been widely publicized in the past. If the launch is recognized by the market, its price will rise rapidly. In 2020, as the year when the blockchain industry started to launch on a large scale, the demand side recognized that the blockchain will have practical applications in cross-border payments, cross-border trade financing, supply chain finance, asset securitization (ABS), and electronic invoices applications. SERO is also currently working with supply chain finance projects.
2020 is the year when anonymous coins have been widely recognized and the year when cross-chain technology has begun to mature. These new trends will generate many aspects of hype, and whether it is the anonymous assets or cross-chain R & D, progress is in full swing in SERO and new launches will be announced in near future.
Historical Halving Analysis
In the months when Bitcoin was halved in 2012, the price of Bitcoin rose from $ 10 to more than $ 100, and in 2016, Bitcoin halved from $ 400 a year ago to more than doubled at the end of the year, which drove it in the big bull market of the cryptocurrency market in 2017, the price of bitcoin rose to more than 20,000 US dollars.
Summary of Halving in 2020
According to statistics from BlockArk, an institution deeply involved in the cryptocurrency industry, the major halving cryptos in 2020 are mainly the currency shown in the figure.
What is SERO?
SERO is a new generation of privacy public chain based on zero knowledge proof that supports smart contracts, allows issuance of privacy coins and privacy assets and is also called as “Privacy Ethereum” by the community. SERO has received early investments from Capital Su, Quantum Foundation, and former IDG partner Zhang Suyang.
Official website : https://sero.cash
Tencent : https://v.qq.com/x/page/s0792e921ok.html
YouTube : https://youtu.be/UNG2boG49Io
Twitter : https://twitter.com/SEROdotCASH
Medium : https://medium.com/@SERO.CASH
Github : https://github.com/sero-cash
Reddit : https://www.reddit.com/user/SEROofficial
BitcoinTalk ANN : https://bitcointalk.org/index.php?topic=5123382.0
Facebook : https://www.facebook.com/SEROProtocol
Gitter Community : https://gitter.im/sero-cash/Lobby?utm_source=share-link&utm_medium=link&utm_campaign=share-link
SERO VS Zcash encryption speed comparison :https://www.youtube.com/watch?v=bc6yHTLSl5M