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Monero's Rally Fuels 'Next Bitcoin' Talk as Tail Emissions Challenge the Scarcity Case

Recent analysis highlights permanent block rewards that keep annual inflation near 1%.

Overview

  • Monero has drawn fresh investor interest for providing on-chain privacy by default.
  • Unlike Bitcoin’s fixed 21 million cap and halving cycle, Monero’s issuance continues indefinitely.
  • Monero uses proof-of-work and tail emissions that began in 2022, resulting in ongoing block rewards.
  • The steady issuance dilutes holders by roughly 1% per year and requires continued demand to absorb new supply.
  • XMR has more than doubled over the past three months as regulators continue to oppose privacy features and pressure exchanges.