Partnered With:

The halving year has come to an end. Who is the most perfunctory among the 8 major halving coins?

Read this article in 20 Minutes

This halving year is over today.

Original title: "The halving year has come to an end, and who is the most perfunctory in taking stock of the 8 major halving coins?" "

Original source: Odaily Planet Daily

20:34 on November 18, 2020, as the network block height reached 1,046,400, The Zcash (ZEC) block reward was reduced from 6.25 ZEC to 3.125 ZEC, announcing the completion of the first reward halving.

This halving year is over today.

At the beginning of the year, the "halving concept" was hyped up. Now it’s time to summarize the ledger, we took out the 8 major halved currencies and “walked for a walk” and found some interesting conclusions.

Let me see who didn't rise at all?

Among the 8 major currencies, except for BTC, the rest of the tokens are halved for the first time, so this performance can be regarded as a good example for the next time "example". Moreover, because it is the first halving, the supply tightening it brings has a greater intuitive impact on the supply-demand relationship and token performance, so let's see who has the most stamina after the halving.

Judging from the increase in the month of halving, except for ETC, which suffered a sharp drop on 3.12, the rest of the tokens grew positively during the halving month. The strongest is DASH, which rose by 32% in the month of halving, and the rest were around 15%. Only ZEC and ZEN (Horizen, equivalent to the Zcash fork currency) only rose by less than 5% in this month when the market was good. %.

This last stick is a bit "quiet".

Looking at the growth rate during the year, if the performance is not good during the halving month, is it possible to perform at other times?

We see that at least ZEN is "not". Since the beginning of this year, it has barely maintained last year's price, and it seems that there is no such thing as "halving".

BCH’s data before the hard fork in November was not bad, but the currency price plummeted before and after the fork, and the overall increase this year did not exceed 20%. The increase of the remaining tokens is mostly 70-80%, including Zcash, the protagonist of today’s halving, and its annual performance is acceptable.

The best increase is BTC and its fork currency BCD (BitcoinDiamond, Bitcoin Diamond), which recorded an increase of 150% and 118% respectively.

The halving bull market is led by Bitcoin. Sure enough, only it can really "move".

The benefit of Zcash halving was realized as early as the beginning of the year. In the long run, halving will have a greater impact on fundamentals

Zcash’s Chinese name is “Da Zingcoin”, which was founded in October 2016. Through zk-SNARKs technology, comprehensive anonymous transactions can be realized. Great anonymous coin.

I don’t know if it’s too late, the market seems to be indifferent to Zcash’s “halving last stick”.

According to the statistics of QKL123, Zcash’s main funds and market popularity have been at a negative value for a month, and Zcash’s daily capital outflow can reach more than 10 million RMB ( See below).

The halving year has come to an end, take stock of the 8 major halving coins, who is the most perfunctory?

From the perspective of currency price performance, Zcash has risen by 122% this year , the performance is acceptable; but if you look closely, most of the gains are concentrated in January (140%), when the halving concept sector is hot; although there is a relatively high increase in April, it is more of 3.12 Bottom rebound brought about by oversold.

In the past 3 months, Zcash has fallen by 24%. In the past week and nearly 24 hours, Zcash has only followed the market, and has not had a breakthrough performance due to the halving.

The halving year has come to an end, take stock of the 8 major halving coins, who is the most perfunctory?

The half-year halving has come to an end, counting 8 big discounts Who is the most perfunctory in the rise of the half coin?

< p>As of press time, Zcash is temporarily at $63.45, a cumulative increase of -2.38% in 24 hours.

Since there was no "good performance" before the halving, what about after the halving? It depends on how much the halving affects the balance of supply and demand.

According to the statistics of QKL123, the current inflation rate of Zcash is 25%, and the inflation rate after halving is 12%, which shows a large drop. It will have a greater impact on the supply side of Zcash in the future.

We can also calculate in detail, before the halving, Zcash produced about 7,000 coins per day, and the average daily production value in the past month was between 2.4-4.1 million yuan After halving, it is equivalent to halving the selling pressure of Zcash miners, which means that the daily production of coins will decrease by 3,500 coins, which will decrease by 1.27 million coins in one year. The supply side of Zcash is expected to decrease by $76.65 million in 2019, which is not a small amount.

Of course, whether Zcash can rise in the future, supply deflation is only one aspect, and we will analyze its other fundamentals later in the article.

Let’s first look at the mining revenue directly affected by this halving.

Before the halving, Zcash's entire network computing power was about 7000Msol/s. At this time, some low-yield mining machines may choose to shut down or transfer to other tokens of the same algorithm (as shown in the figure below).

The halving year has come to an end, take stock of the 8 major halving coins, who is the most perfunctory?

Part of the Zcash mining machines earned less than 10 yuan before the halving, The picture is taken from poolin.com

The halving year has come to an end, take stock of the 8 major halving coins, who is the most perfunctory?

Other tokens that also use the Equihash algorithm, the picture is taken from wabi.com

At the end there will be How many miners will withdraw from the network due to the halving of rewards, I am afraid it will take a few days to know.

Development team led the continuation of "tax pumping", lost all support?

Actually, as early as last year, I heard miners complaining about Zcash.

The reason is that it proposes a continuation of the tax collection mechanism, which directly touches the interests of the miners, and secondly violates the spirit of "one is not two" in the blockchain. The development team dominates and is quite centralized.

According to the original design of Zcash, in the first four years of the project, 20% of the block rewards will be used as the founder and team ( That is, the operating expenses of ECC company), this decision has been controversial in the era of advocating decentralization, so this mechanism is also vividly called "miner tax".

This pumping mechanism is scheduled to end in October 2020. However, in May of this year, the Zcash Foundation re-voted in the community. The result of the vote was to overthrow the previous design and continue the pumping mechanism.

And the development team also has problems. It seems that the ecology has not been built, and a lot of money has been spent. In May last year, Electric Coin Company, the development company of ZCash, disclosed its transparency report for the second half of 2018, showing a huge financial deficit of $3 million.

In July 2019, some founding team members forked Zcash, created a new chain Ycash, and implemented the original route.

So, in addition to halving today, Zcash also carried out an upgrade called "Canopy" to adjust the distribution of Zcash tokens.

This upgrade will distribute ZCash block rewards for the next four years, of which 80% will continue to belong to miners and 20% will be used for ZCash development, of which The Grant Fund gets 8%, Zcash developer Electric Coin Company (ECC) gets 7%, and the Zcash Foundation gets 5%.

Actually, the token reward for ECC is likely to be greater than 7%. According to ECC's 2018 semi-annual report, due to the loss of millions of dollars, the company decided to allocate funds from the Zcash Foundation from June 2019 to provide the company with operating expenses of more than 380,000 US dollars per month.

So, what did the development team who shared a considerable part of the tokens with the miners and the community do?

According to public information, in the past 4 years since its launch, Zcash has been upgraded 5 times under the leadership of ECC. The direction of the upgrade is almost all to improve transaction performance. The upgrade is to reduce the block confirmation time and memory required for anonymous transactions, and to launch an off-chain transaction application BOLT (Blind Off-chain Lightweight Transactions) similar to the "Lightning Network".

Compared with the original version, this upgrade does not have a qualitative breakthrough, and it cannot be compared with public chains such as Ethereum that are aggressively promoting applications.

Therefore, it does not seem to be expected to continue to maintain the pattern of mining and development and ECC dominance.

The market value of the privacy public chain has been squeezed, and the story of Zcash is going to be outdated?

I remember two years ago, when we made statistics on the three major anonymous coins, their market value was still ranked 12-21. With the rise of new projects such as sharding, PoS, cross-chain, DeFi, and storage, the front of anonymous coins has "retreats backwards", and the rankings of the three major anonymous coins have retreated by 1, 10, and 9 respectively.

The halving year has come to an end, take stock of the 8 major halving coins, who is the most perfunctory?

Data from Feixiaohao, statistical time: 2018.10.10

This reflects to a certain extent that the audience for private vertical public chain stories is becoming increasingly scarce.

In the past two years, there have been too many stories in the blockchain world. From chain efficiency and cost breakthroughs to practical breakthroughs, we have seen too many The blockchain world becomes a better option. Privacy is of course just needed, but it can also be added to these new public chains as one of the functions. At that time, why do people have to use these anonymous coins?

ZCash and Monero seem to be limited to their own one-acre three-point land, while Dash has already planned to transform.

In October 2019, Raico, the head of the Dash Chinese community, said in an interview with Odaily, "Dash is instant payment by default, and anonymous payment is only used An option. This shows that what Dash wants to do is not an anonymous currency, but a payment digital currency, Digital Cash (digital cash).”

From its evolution process It can be seen that Dash has indeed surpassed the scope of DarkCoin, and has achieved many innovative applications in terms of public chain scalability, developer incentives, and community governance.

Dash has designed a master node network with POS as the consensus mechanism on top of the underlying PoW ledger, providing the network with currency mixing, instant payment, and defense 51% attack and community voting governance and other functions, and 10% of the block rewards are fixedly distributed to the "budget system DASH DAO", thus realizing relatively decentralized and efficient development and construction.

As some people in the industry said about the "final conclusion" of privacy coins, "For tokens that want to go to the public, pure privacy performance is not suitable. However, looking at the future of privacy, the deployment of privacy functions in mainstream cryptocurrencies may become the ultimate destination of the privacy field.

Pure privacy coins , The privacy public chain seems to have no future. So what about as a characteristic asset that can be held?

In October this year, Tokensoft, the Ethereum token issuer, and the encryption The custodian Anchorage cooperated to launch wrapped zcash (WZEC), which is linked to ZEC 1:1 (similar to WBTC and BTC). It is essentially for ZCash holders, bringing ZCash as a pure asset to the Ethereum ecosystem. Circulation.

Although at this time, the private transaction of ZCash has disappeared and lost its original meaning.

< /p>

Recently, ZCash has another piece of good news—it has gained grayscale holdings.

AICoin index market shows that on November 8 , Grayscale’s ZEC trust holdings increased by 3,534 ZECs, an increase of 2%, reaching a total of 179,000 ZECs.

“Although the increase in Grayscale’s holdings is not large , but compared to the BCH that has been reduced, it is already good.” Analyst Xiao K feels that ZEC’s performance among the old mainstream currencies is not bad.

In the past 3 years, the position of anonymous currency has gradually disappeared in Xiao K's account. He can't remember the last time a privacy coin attracted attention.

Perhaps, 2 years ago, Grin based on Mimblewimble was popular in the market as a clean stream because of its high degree of decentralization.

"I really hope that is not the last spring of anonymous coins." Xiao K said leisurely while thinking back.