Supply and Rewards

Total and Circulating Supply

The total supply of NIM is 21 billion (21e9 NIM, inspired by Bitcoin but increased by a factor of 1000). The smallest unit of NIM is also called satoshi, there are 100,000 (1e5) satoshis in 1 NIM, which makes the total supply of NIM equivalent to 21e14 satoshi (exactly like Bitcoin).

The Mainnet’s initial supply will be 12% of the total supply (2.52 billion NIM) which will be included in the Genesis Block and corresponds to the NIM redeemed by NET holders during NET-to-NIM conversion.

After launch the circulating supply will increase in a curved fashion following our Dynamic Block Reward scheme.

Dynamic Block Reward

To avoid the inestability caused by the modification breakpoints in a halving scheme like Bitcoin’s, Nimiq uses a dynamic block reward. The dynamic block reward ensures a smooth decay in the emission rate. It is inspired by Monero & Cryptonote. They base their reward in the following formula.

blockReward = (totalSupply - circulatingSupply) >>> k

We have taken a similar approach but we selected a value of k=22 and, at a certain height (Block 48692960), switching to constant block reward of 4,000 satoshis (tail emission) until the total supply of 21e14 satoshis is reached. This has the following beneficial side effects:

Difficulty Adjustment

The difficulty for every block is calculated according to the time it took to mine the last 120 blocks. To account for sudden changes in the global hashing power of the network, a minimum/maximum adjustment rate of 2 limits the variation of the difficulty. The targeted block time is 60s.