CKB is about to halve for the first time, with inflation falling to 3.77%

Nervos Network (native token CKB) will see its first halving on November 19. This event will halve CKB’s hard-cap base issuance rate, bringing the real inflation rate from 7.92% to 3.77%, the lowest among major Layer 1 blockchains.

! [CKB is about to usher in its first halving, and inflation has dropped to 3.77%] (https://piccdn.0daily.com/202311/18075000/jkk2f2nznysqnwlp.png!webp)

In nominal terms, the CKB base issuance will fall from 4.2 billion to 2.1 billion per year, while the secondary issuance will remain unchanged (the secondary issuance is not capped and follows a fixed release schedule) at 1.344 billion per year.

The uncapped secondary issuance prevents excessive state growth and ensures that CKB miners receive a predictable long-term revenue stream independent of trading volume. It’s worth noting that the inflation caused by the secondary release is narrow and only affects occupiers, which means that CKB is an inflation-resistant token for its long-term holders.

! [CKB is about to usher in its first halving, and inflation has dropped to 3.77%] (https://piccdn.0daily.com/202311/18075105/s7dcs5tye77mfslc.png!webp)

About the “Public Knowledge Base”

The network’s Layer 1 is known as the Common Knowledge Base (CKB), which uses proof-of-work (PoW) consensus for transactions and smart contract execution through a groundbreaking general-purpose UTXO model and a virtual machine based on the RISC-V instruction set.

The CKB’s high flexibility allows it to support a wide range of application solutions that scale and build on it, while proof-of-work security ensures that the network’s global digital infrastructure remains resilient, neutral, and permissionless.

More than “account abstraction”

The CKB is committed to setting a new industry standard for the flexibility of account abstraction. Its bookkeeping model, known as the Cell model, is a generalization of Bitcoin’s UTXO model, giving developers full control over the data structure stored on-chain as well as the transaction authorization logic, making the CKB “account” abstract in definition.

In addition, CKB leverages a completely abstract, low-level virtual machine called CKB-VM, which allows developers to deploy a variety of signature and hashing algorithms, similar to utilizing plugins, without the need for a hard fork. Unlike other platforms where cryptographic primitives are hardcoded through the protocol, this protocol-level abstraction allows transactions to be signed using signatures from any blockchain system (or even more widely supported standards such as Passkeys or DKIM), truly redefining what a blockchain can do.

Products like JoyID, a convenient WebAuthn wallet, and d.id, a chain-agnostic decentralized identity provider, are already using CKB to deliver premium blockchain experiences to thousands of users.

Solve the challenge of state bloat

Nervos Network is designed to directly solve the problem of state bloat. It employs a multi-layered architecture and ties state growth to the network’s native token, where one CKB represents the right to store one byte of data on-chain.

This architecture minimizes node hardware requirements and ensures network decentralization by facilitating off-chain computation to reduce on-chain storage requirements while limiting the state growth of the blockchain by issuing CKB.

In addition, state rent is implemented by narrowing target inflation, incentivizing responsible on-chain state management and providing miners with a sustainable, predictable, long-term source of income.

The first halving is coming

As the first CKB halving event approaches, Nervos Network is striving to continue to innovate in the industry and maintain long-term sustainability.

This halving will undoubtedly be one of the key moments in the network’s growth journey. In response, the Nervos Foundation is organizing an online event on YouTube on November 19 at 10 a.m. EST (11 p.m. EDT).