Lisk (LSK) Reaches Reward Halving for Block Producers
The Lisk platform will decrease the planned inflation through a lowered reward for the 101 block producers.
Lisk (LSK), one of the more significant distributed proof-of-stake networks, has reached a reward-halving date. The halving in DPoS coins is a bit different than that of minable coins. For the Lisk network, the reward will be lowered from 4 to 3 LSK per block, then lowered by one LSK each year until it reaches 1 LSK.
The reason for the lowered reward is to gradually decrease inflation within the LSK ecosystem. With 10-second blocks, from now on, the network of 101 block producers will compete for 8,640 LSK in a day.
For LSK, the halving event will probably not lead to an immediate and rapid appreciation. In the past, for some coins, the reward halving has coincided with some price growth, or at least a short-term pump. In the case of LSK, the market price remained relatively stagnant, rising by just 1.73% in the past 24 hours, to stand at $2.77 as of 12:00 UTC. LSK trading has been freezing, down to $5 million in 24 hours, a far cry from the $262 million in 24 hours achieved during peak times.
The low LSK prices are also highly dependent on the Bitcoin (BTC) market price, as LSK lacks other active pairings. This factor partially explains the stagnant LSK prices, as some altcoins are paired with Tether (USDT) and manage different chart trajectories.
LSK has failed to reach prices above $30, and has bypassed the predictions of triple-digit prices similar to Ethereum (ETH). At this point, LSK is seen as a speculative opportunity due to the low prices.
While Lisk is seen as a solid project, its network has also shown the flaws of DPoS coins. In the case of Lisk, current block producers are influential enough to keep voting for themselves and in effect create collusion. Similar problems have been noted with the EOS ecosystem.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.