When we decided to create Neurai, the coin distribution had to be as optimal as possible, but defining this is truly challenging.
We could have copied Bitcoin’s or Ravencoin’s method with a reward reduction every 4 years, but doing so now doesn’t seem very useful due to the potential lack of supply during the project’s early stages.
Another option was to reduce the halving period to 2 years or even 1 year. At this juncture, we believed we had the best choice. However, having a halving every year could also be detrimental due to the abrupt drop to 50% of the reward overnight.
Here arose the idea of micro-halving: distributing approximately 50% of all possible coins within the first year and then slowing the distribution rate over time thereafter. This would allow for a substantial number of coins in circulation during the first year, preventing a supply shortage in the markets. The amount that could be mined would always be sufficient to ensure the network’s security.
After conducting various calculations and tests on Testnet, we decided to start with 50,000 coins and reduce the reward by 5% every 14,400 blocks, which equates to every 10 days.
This table illustrates the 5% reduction up until the 36th micro-halving, at which point it transitions to a gentler distribution method.