4.1 BitNet Halving: A Sustainable Tokenomics Model

BitNet Halving is a core feature of the network’s economic model, designed as a deflationary mechanism inspired by Bitcoin’s proven approach to controlled supply issuance. Under this system, the block reward—the number of new tokens generated and awarded to miners for validating transactions—is reduced by 50% every 42 million blocks. With blocks produced approximately every 10 minutes, this halving event occurs roughly every four years.

The purpose of the halving mechanism is to gradually decrease the rate at which new tokens enter circulation, limiting inflation and introducing a predictable, transparent supply schedule. As the block reward continues to decline over time, the total supply of BitNet tokens becomes increasingly scarce. This built-in scarcity supports the long-term value of the token by aligning with basic economic principles of supply and demand.

By reducing rewards in fixed intervals, BitNet also encourages early participation, long-term holding, and thoughtful resource allocation by network participants. It helps stabilize the ecosystem by avoiding sudden shifts in supply dynamics, making it easier for users, developers, and investors to plan for the future.

Ultimately, BitNet’s halving mechanism plays a crucial role in maintaining network sustainability, encouraging responsible growth, and preserving token value over the long term.