# 4.2 How the Halving Works

**Block Rewards and Timing**

BitNet's economic design begins with a fixed block reward distributed to miners who validate and secure the network by processing transactions. This reward is paid in BitNet's native token, **BNC**. At network launch, the initial reward is set at **50,000 BNC per block**.

Blocks on the BitNet network are produced approximately every 10 minutes. This means that, over time, a substantial number of tokens are introduced into circulation—unless supply is regulated. To manage this, BitNet implements a **halving event** that occurs every **42 million blocks**, which is roughly every **four years** based on the average block production time.

These halving events reduce the rate at which new BNC tokens are created, gradually tightening the supply and aligning with a long-term deflationary model designed to preserve value and encourage early participation.

**Automatic Adjustment**

The halving process is fully automated and embedded into the core protocol. It requires **no external governance**, decisions, or upgrades—ensuring consistency and predictability.

When the total number of blocks reaches a halving threshold (e.g., 42 million, 84 million, etc.), the **block reward is instantly reduced by 50%**. This reduction happens in real-time at the moment the milestone block is mined.

Here is a sample halving schedule:

| Halving Event    | Block Reward (BNC) |
| ---------------- | ------------------ |
| Genesis (Launch) | 50,000 BNC         |
| 1st Halving      | 25,000 BNC         |
| 2nd Halving      | 12,500 BNC         |
| 3rd Halving      | 6,250 BNC          |
| 4th Halving      | 3,125 BNC          |
| 5th Halving      | 1,562.5 BNC        |
| ........         |                    |

This schedule gradually reduces rewards until they become negligible or reach a predetermined minimum value. This predictable and controlled issuance model encourages early adoption, long-term holding and contributes to a stable and secure network economy.


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