Alephium Emission: A Detailed Explanation

Alephium Emission Explained

Alephium uses an efficient Proof of Less Work algorithm. In the Alephium network, 860 million Alephium will be mined. The freshly minted Alephium coins are distributed to miners as block rewards for contributing their resources and securing the network.

Alephium emission works similarly to Bitcoin halving, where the mining rewards are reduced to half to create scarcity and beat inflation. However, unlike halving, which happens every four years, in the Alephium emission, the block reward is dynamically adjusted based on the network hash rate and timestamp.

Alephium is created with a maximum cap of 1 billion. Around 86% of the total supply, or 860 million Alephium, will be mined over 82 years. The remaining 140 million Alephium, which is around 14% of the maximum supply, will be minted with the Genesis block for Genesis Allocation and Vesting Schedule.

The Alephium mining reward will rely on the hash rate and time. For instance,

Block Reward = min (time-based reward, hash rate-based reward)

Over the course of four years, the time-based mining reward gradually decreases from 15 ALPH (distributed across 16 chains) per block period (16 seconds) to 5 ALPH. After these four years, the reward will be fixed at 5 ALPH per block period, eventually decreasing to 0 ALPH after 82 years.

Time-based reward emission rate for the first four years will be

Hash rate-based reward emission rate

• When the hash rate remains within the [0 hash/sec, 1 Ph/sec] range, the hash rate-based mining reward increases gradually from 0 ALPH to 15 ALPH (shared by 16 chains) per block period with a minimum of 7.5 ALPH guaranteed.
• When the hash rate is within the [1 Ph/sec, 1 Eh/sec] range, the hash rate-based gradually decreases from 15 ALPH to 5 ALPH per block period.
• When the network hash rate is within the [1 Eh/sec, 128Eh/sec] range, the hash rate-based gradually decreases from 5 ALPH to 0 ALPH.

Deflationary Forces

• Alephium has deflationary forces as well.
• Earlier, only 50% of the transaction fees were burned. However, now after the Leman Network Upgrade in March 2023, 100% of the transaction fees are burned.
• Alephium’s Proof of Less Work will demand coin burning when activated, internalizing part of the mining cost through the upfront burning of ALPH.

Genesis Allocation & Vesting Schedule

• 80 million or 8% is designated for past and upcoming sales, with funds subject to on-chain locking upon sale and various vesting periods.
• 30 million or 3% is designated for ecosystem development, vesting for around 4 years in quarterly unlocks.
• 30 million or 3% for treasury and team, again vesting over 3 years in quarterly unlocks.

Sales Allocation Vesting

Alephium’s sales events are held in three phases: seed sale, pre-sale, and private sale. Alephium’s authorities confirm that a total of 62,951,077 Alephium coins were sold and locked for a varying time period of 2 to 4 years.

Below is the sales allocation vesting schedule.

The remaining 17,048,943 ALPH will be allocated to secure funding for the project’s long-term development and sustainability. These funds will be utilized over the medium to long term through various methods, including direct sales, liquidity provisioning, and OTC deals. The approach will aim to minimize market impact while enhancing the liquidity, distribution, and circulation of ALPH.