FTO’s hard fork consists of two elements — setting up masternodes along with the reduction of supply. What does supply reduction mean? Every cryptocurrency has limited resources. The more production increases, the more the price of goods decreases, but cryptocurrency as a carrier of value can grow. It’s a lot more stable than the situation surrounding the current world economy.
Even Bitcoin — one of the biggest cryptocurrencies — has its supply fixed at 21 million. 87% of this number has already been mined. The quantity of Bitcoins available for mining is getting smaller. The supply of new coins will be depleted by 2140. Low cryptocurrency supply is related to high demand and price growth. This differs from the global financial system.
Plans for the FTO — what exactly is halving?
We plan to increase the FTO’s value by decreasing the count of mined coins, which is called halving. What exactly is halving? To understand the idea of halving, you have to know how cryptocurrency is made. Significant amounts of computers register and verify transactions and their accuracy in the blockchain. The leading miner’s request is to add new blocks of information to the database. Mining also means competition between computers which solve a complex hashing puzzle first. Upon solving a new block is developed and can be added to the blockchain. For that effort, miners claim the reward in the form of newly created coins. Halving reduces remuneration by half.
Effects of hard fork and halving
Since the start of FuturoCoin, every block was rewarded by 13.31811263 FTO and the increase of FTO was linear. The New version developed in March 2020 introduced a new halving mechanism. Every two years, the supply of new FTO will be halved by two. After reaching 1.66476407875 per block, the FTO protocol will switch into tail emission and stay on that amount. We hope that the popularity of FTO will grow immediately as well as the exchange price. Cost reduction can also be noticed in the sphere of mining. The sale of FTOs intended to cover the cost of mining will also decrease.
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