Answering Some Keys Questions About $CAU Supply

Today, we received a few interesting questions about the $CAU supply. Although there have been many articles about it, we will continue to clarify more in this article.

Here is the original question from him, whose username is @Junk__City:

I'm interested in understanding more about the supply mechanics of CAU. Could you please explain how new coins are minted and if there's a cap on the total supply? Additionally, how does mining difficulty impact the rate at which new CAU is generated? Thanks!

And here are our answers:

1. How new coins are mined?

Mining New CAU:

New CAU coins are mined through Retained Proof of Work rather than conventional block rewards. Miners submit PoW evidence from either:

Independent PoW (Direct Mining on Canxium)

• Valid mining transactions using the Ethash algorithm are currently rewarded 1.58 CAU per 1 PH of difficulty, decreasing by 11% every month.
• 1 PH of Ethash difficulty is significant — for reference, Ethereum’s highest historical difficulty was around 14 PH.

Difficulty | Reward
1 PH | 1.58 CAU
2 PH | 3.16 CAU

Integrated PoW (Cross-Mining from Other Blockchains Like Kaspa)

• Valid Kaspa blocks are rewarded 0.183829 CAU per 1 EH difficulty.
• Kaspa’s current block mining difficulty is 0.68 EH, resulting in an actual reward of 0.125 CAU per Kaspa block.

Difficulty | Reward
1 EH | 0.183829 CAU
2 EH | 0.367658 CAU

You can learn more about the rewards at https://canxium.org/whitepaper/tokenomics/tokenomics

2. Why Did We Invent Cross-Chain Mining?

Canxium has successfully deployed cross-mining with Kaspa. But why did we introduce this feature?

Independent mining has proven its purpose: fixing the mining cost so that new CAU supply is only created when CAU’s price is higher than the mining cost. This mechanism has been effective — over the past few months, miners have only mined around 1 CAU per day.

This validates that Canxium’s decentralized supply control mechanism is functioning perfectly. However, since Canxium is still a young blockchain project, the premature activation of this strict supply control delayed growth and adoption.

Growth must go hand in hand with expansion and an increasing community of CAU holders. We must achieve popularity first, then think about stability — doing the opposite would guarantee failure.

3. Is There a Cap on Total Supply?

Unlike Bitcoin’s fixed 21M cap, CAU does not have a strict supply cap, but issuance is dynamically controlled to prevent excessive inflation.

Rather than setting a hard limit on total supply, Canxium limits the maximum amount of CAU that can be mined per difficulty EH.

• Mining difficulty = Energy consumption
• Higher difficulty requires more energy → more CAU is produced.
• Lower difficulty requires less energy → less CAU is produced.

To generate infinite CAU, infinite energy would be required — making uncontrolled inflation impossible.

4. How Does Mining Difficulty Affect CAU Generation?

As mentioned earlier, mining difficulty represents energy consumption.

• Higher difficulty → Higher energy consumption → More CAU is produced
• Lower difficulty → Lower energy consumption → Less CAU is produced

This mechanism ensures Canxium’s supply dynamically adjusts to market conditions, preventing inflationary risks while aligning miner incentives.

Canxium’s Decentralized Supply Control Mechanism

Canxium ($CAU) has a unique decentralized supply control mechanism that differentiates it from traditional PoW coins.

Key Takeaway

Canxium’s system ensures a steady and controlled issuance, aligning miner incentives while preventing inflation.

Unlike traditional PoW models, CAU’s supply adjusts organically based on demand, difficulty, and market conditions, creating a resilient and sustainable mining economy.