Canxium is an innovation in the crypto space and it has its own unique mechanisms. Many of its concepts are new and unknown to people. In this article, we are going answer some of the frequently asked questions about Canxium and the working of its mechanisms.
What is the maximum supply of CAU?
Canxium has no maximum supply. There is no limit set for the max supply of CAU. It adopts a demand-driven approach, where the coin supply is determined by market demand. The production of CAU will increase by increasing demand and vice versa due to its unique block reward distribution mechanism. But the key point is that the cost to mine one CAU is high, so miners can only mine CAU as per market demand. So there is no total supply limit for CAU, it has only a circulating supply which increases as new coins are mined.
What is the circulating supply of CAU?
Circulating supply means the total number of coins that are available on the blockchain. The circulating supply of CAU at the time of writing this article is 169,750 CAU. CAU will reach the circulating supply of 1,051,200 CAU at the hydro fork. The rate of increment in circulating supply is high for the first year till the hydro fork to ensure enough supply of CAU in the ecosystem. The supply will increase without taking demand into account till Hydro Fork. After the Hydro fork, the rate may increase or decrease depending on the demand, and supply will increase as per demand.
What is Hydro Fork?
The Hydro Fork will occur at block 4,204,800. After Hydro Fork, Canxium will change its fixed block reward to a variable block reward which will be directly proportional to demand. At the time of writing this article, 679,880 blocks are mined. So 3,524,920 blocks are remaining for Hydro Fork which can take estimated 347 days to mine by taking an average block time of 8.5 sec.
How much is Canxium’s block reward?
Currently, the block reward is 0.25 CAU. 75% of the block reward is credited to the miners and 25% goes to the foundation fund. Miners will receive 0.1875 CAU per block before the Hydro Fork and the rest will go to foundation funds. The block reward is set to be 0.25 CAU for the first year till the hydro fork to ensure enough supply of CAU in the ecosystem.
After Hydro Fork, the block reward will be 500 Wei per difficulty hash. This will make the block reward variable with respect to mining difficulty. An increase in difficulty means an increase in block reward.
If the mining difficulty is 0.1 PH, the block reward will be 0.05 CAU
As 0.1PH = 100,000,000,000,000
100,000,000,000,000 Hash * 500 = 0.05 CAU. (as block reward is 500 Wei/hash)
If the mining diffculty is 1 PH, the block reward will be 0.5 CAU
As 1PH = 1,000,000,000,000,000
1,000,000,000,000,000 Hash * 500 = 0.5 CAU. (as block reward is 500 Wei/hash)
A complete demonstration of the block rewards per different mining diffculties is given in the Excel sheet Canxium Chain.
After Hydro Fork, 98% of the block reward will be credited to the miner and 2% to foundation funds.
What will be the Circulating supply at Hydro Fork?
Canxium mainnet launched two months ago with no pre-mine, no airdrop, and no private sale. Only 1,051,200 CAU can be mined for the first year. CAU will reach the circulating supply of 1,051,200 CAU at the Hydro Fork. From which 788,400 CAU (75%) will go to miners as block reward and 262,800 (25%) will go to foundation funds. Right now, we can’t predict the difficulty (hash) and demand at that time. That’s why we can’t estimate the circulating supply after Hydro Fork as the increment in supply would be variable (as block rewards would be variable).
What are Foundation Funds?
Canxium launched without any pre-mine or private sale. So the funds required for the development and marketing of the project are taken from foundation funds. 25% of the block reward will deposit in foundation funds till the hydro fork. The percentage for foundation funds is higher for the first year as the project needs more funds in the early stages for marketing, exchange listing, and other tasks. The percentage of foundation funds is set to be only 2% after the hydro fork which will be used for the maintenance and other tasks.
What’s the estimated cost to mine 1 CAU? (Before Hydro Fork and after Hydro Fork)
This question doesn’t have an absolute answer as mining cost varies in different circumstances and regions. Electricity and other costs vary country by country. But for now, the estimated cost to mine 1 CAU is very high volatility if more miners join the network (before Hydro Fork). After the Hydro Fork, the estimated cost to mine 1 CAU can become more stable and less volatility even if more miners join.
Canxium has an inflationary supply model like Ethereum?
Canxium blockchain looks like an inflationary model like Ethereum or Dogecoin as it has no maximum supply but it’s different. Unlike traditional blockchains with fixed supply or inflationary or deflationary mechanisms, Canxium adopts a demand-driven approach, where the total coin supply is determined by market demand. So CAU can suffer both inflation and deflation based on the demand.
In a nutshell, the block reward depends on the difficulty and difficulty depends upon demand, as mining is the only way to produce CAU so the circulating supply will depend on it. In Canxium there is no total or max supply, more CAU will enter the supply according to demand.
Written By Talha Tariq.