Home Finance News Subsidy Issue surfaces in the Digibyte (DGB) Community

Subsidy Issue surfaces in the Digibyte (DGB) Community

Digibyte

Jared Tate made a mention of the work and details projected by Yoshi Jaeger on the Subsidy Issue.

Yoshi Jaeger, Digbyte Core, and Mobile Wallet Engineer stated, “FYI, several months ago, I have been working on an ideal and very documented subsidy implementation that matches the official DigiByte specs very precisely. I have especially prepared the document explaining the math behind the subsidy and how to solve the issue. As a result, DigiByte deserves a high-quality solution that matches all contribution requirements/guidelines.

However, it does not make sense to integrate the fix immediately because we need to decide on a fixed future block height at which the current subsidy code will change. Hence it makes sense to wait until we have merged the official BTC upstream commits and the discussed algorithm changes because these require a block height too.  My advice for everyone: keep calm and wait for a community consensus. I know we will find one. A good one. Everything is all right. Patience will pay off.”

Subsidy points to the amount of money granted by the state or a public body to help an industry or business to keep the price of a commodity or service low.

Josiah Spackman previously pointed to how there is a 520 DGB reward per block with a transaction fee that is negligible.

Bitcoin rewards 6.25 BTC per block plus 1 BTC in block-rewards for every 10 minutes.

Talking about the massive difference between BTC and DGB in terms of block rewards, the reality is that Bitcoin has a FAR higher value in the block rewards when compared to DigiByte in terms of USD value.

With DigiByte being 40X faster in terms of block-timing compared with Bitcoin, it is expected that both DigiByte and Bitcoin will hopefully implement Schnorr Signatures and Taproot very soon.  This will, in turn, improve on-chain scalability. However, there are no guarantees that future implementations will happen naturally.

Miners need to pay power bills and also the cost of hardware which they have to recover.

Jared stated, “I can 100% promise the Digibyte community by the year 2035, there will only be 21 Billion DGB. There has been a legitimate question of what happens at the end of the reward decay year 2035. Possibly the block reward stays at 1 & doesn’t fully decline to 0.”

The discussions about reward decay in 2035 are surfacing.  Jared pointed to how they have tested the reward decay structure in 2015-2016 and on how it worked as expected.  He also stated that he is not against working towards one significant upgrade and algorithm change but said it should be done securely and safely. Finally, he pointed to the existence of hard fork agenda for an ALGO swap.  Even the slightest tweak, according to Jared, will compromise the reward decay structure.

Jared is not up for a rushed change as it can be dangerous.

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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