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Zcash Community Studies The Possibility Of Consensus Algorithm To Reduce The Inflation Rate


ZCash CEO, Zooko Wilcox, admitted that this privacy-oriented cryptocurrency user has a too high rate of inflation, and focused on possible changes in the consensus algorithm.

He wrote a series tweets, noting that the problem of high inflation was becoming ever more relevant, since at current prices, the daily issue of new Zcash coins in dollar terms exceeded $ 400,000.

Zooko Wilcox cites data from the analytical resource Messari, according to which at current emissions and prices, the rate of daily inflation is 0.11%. For comparison, in Bitcoin, this indicator is about 0.01%.

In this regard, Wilcox mentioned a thread on GitHub, where there is a discussion about Harmony Mining - a proposed change to the Proof-of-Work algorithm that can be implemented in a future Zcash upgrade called Blossom. The essence of Harmony Mining is to change the Zcash consensus mechanism to dual algorithms, one of which will be backward compatible with the current ASIC mining, and the second will be temporarily focused on graphics accelerators.

As explained, such a scheme will allow spreading the issue and political influence to a wider range of participants and will allow reducing the rate of inflation. One of the proposals is to limit the daily issue to $ 21,658 at current prices, but there is no consensus on how exactly the Zcash emission mechanism should be built at the moment.

Zooko Wilcox also provides a link to the description of the upgrade Blossom - the next important stage in the development of Zcash. Its activation is scheduled for October this year.

A previous major update to the Zcash network called Sapling took place at the end of October 2018.