Understanding HALVING for Efficient Mining

Welcome to Rubi Network! To help you understand the Rubi Halving mechanism better, we provide a simple and easy-to-understand explanation of how it works.

What is Halving?

Halving is a mechanism that reduces mining efficiency by half after reaching a certain number of miners participating in the network. This mechanism helps maintain scarcity and is also an effective economic strategy to promote the value of Rubi (RBL) over time.

Rubi's Halving Mechanism

Rubi Network has designed a Halving mechanism based on the number of active miners in the network. Specifically, as the number of miners increases, the mining efficiency will gradually decrease according to specific thresholds:

• Highest Performance When Miners < 1000:
  Rewards Start at 10 RBL/day.
   
• Halving 1: When 1,000 Miners Are Reached:
  Rewards Halve to 5 RBL/day.
   
• Halving 2: When 10,000 Miners Are Reached:
  Rewards Halve to 2.5 RBL/day.
   
• Halving 3: When 100,000 Miners Are Reached:
  Rewards Halve to 1.25 RBL/day.
   
• Halving 4: When 1,000,000 Miners Are Reached:
  Rewards Will Decrease to 0.625 RBL/day.
   
• Halving 5: When 10,000,000 Miners Are Reached:
  Rewards Will Stop at 0.3125 RBL/day.
   
• Balance Factor A:
  After the 5th Halving, the balance factor A appears to ensure supply balance.

Balance Factor A

When the number of miners exceeds 10,000,000, the mining efficiency does not simply drop to 0.3125 Rubies / day, but also depends on the balance factor A. This factor is refreshed every week and has a value from 0.01 to 0.99. It depends on the number of Rubies consumed, locked for a long time, or lost control in the previous week. It is like a mechanism to regulate Rubi production to rebalance the overall demand of the market.

If on Bitcoin there is an index called Hashrate representing "Bitcoin mining difficulty", this index is the competition ratio between Bitcoin miners, it increases proportionally with the number of "miners" participating in bitcoin mining. On Rubinetwork, there is an index factor A which is also considered as the mining difficulty factor of the Rubi network, this factor is calculated by a balanced algorithm, flexible, optimal and highly adaptable to the market context and RBL consumption.

is calculated by a balanced algorithm, flexible, optimal and highly adaptive to the market context and RBL consumption.

Some quick points to remember about the factor A.

• A (Consumption Balance factor): This is a very important factor, with a value from 0.01 to 1, and it is used to adjust and update weekly, it indicates the maximum mining performance of the next week.
  .
• Each week, factor A will be updated once: The value of A will reflect the consumption level, or the amount of RUBI that has been locked, from which the maximum mining performance for the next week is calculated.
  .
• The A index directly affects the next week's maximum mining efficiency: Accordingly, the next mining efficiency = 0.3125 * A.

This means that if A has a large value (close to 1), the mining efficiency will be close to the maximum of 0.3125 RBL/day. If A has a small value (close to 0.01), the mining efficiency will be lower, even very low.

For example: If A = 0.5, then your mining efficiency for that week will be 0.3125 * 0.5 = 0.15625 RBL/day.

Factor A (Active Balance) is applied when the 5th HALVING occurs.

Thus, when the amount of Rubi in the market is consumed, locked long-term, or in wallets that have lost control, it is considered as a reduction in the market supply. The production of new Rubi is then adjusted by factor A to compensate and maintain balance.

- Formula: Mining Efficiency = A * 0.3125 Rubi/day.

The A factor helps adjust the amount of new Rubi mined, ensuring the supply and value of Rubi in the market remain relatively stable, making Rubi a widely accepted commodity. This strategy of balancing supply and stabilizing prices allows Rubi to be used as a stable medium of exchange for other goods in the market. 

Why is the Halving Mechanism Important?

- Maintain Scarcity: The Halving mechanism helps slow down the issuance of new Rubi, making it scarcer over time.

- Protect Value: With limited supply, the value of Rubi can increase if the demand for hoarding and use continues to rise.

- Encourage Early Participation: Early miners have the advantage of mining more Rubi before efficiency decreases.

Conclusion

Rubi's Halving mechanism is not just a technical measure but also an important economic strategy to maintain the scarcity and value of Rubi over time. Understanding this mechanism will help you mine Rubi more effectively and appreciate the potential of this digital asset in the future.

We hope this article has provided you with a clear and understandable overview of Rubi's Halving mechanism. If you have any questions, please contact our support team for assistance.

Wishing you successful mining and many Rubi rewards!

Sincerely,
Rubi Network Team

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