On November 19th, the Nervos Network’s CKB blockchain will undergo its first halving. With this occurrence, CKB will become one of the lowest major Layer 1 blockchains with a real inflation rate of 3.77%, having cut in half its hard-capped base issuance rate of 7.92%. The uncapped secondary issuance, which will adhere to a set emissions schedule, will stay at 1.344 billion CKB yearly, while the base issuance will drop from 4.2 billion to 2.1 billion CKB annually.
The goal of the secondary issue is to stop the state from growing too quickly and to give CKB miners a steady stream of income that is not reliant on the volume of transactions. For long-term holders, CKB is a disinflationary token because secondary emissions inflation solely impacts state occupiers. A robust Layer 1 network, the Common Knowledge Base (CKB) employs a generalised UTXO model, Proof-of-Work for consensus, and a virtual machine based on the RISC-V instruction set for transactions and smart contract execution.
The adaptability of CKB facilitates a range of scalability and application solutions that may be developed upon it, and Proof-of-Work security guarantees a robust, impartial, and permissionless worldwide digital infrastructure. CKB accounts are abstract by design since the network’s unique accounting architecture, the Cell model, gives developers total control over the on-chain data structure and transaction authorization mechanism. Additionally, developers can implement various hashing and signature methods without needing to force hard forks thanks to CKB’s low-level virtual machine, CKB-VM.
The Nervos Network’s multi-layered architecture and tie state expansion to the native token of the network solve the problem of state bloat. By transferring processing off-chain and limiting the expansion of the blockchain state through CKB issuance, this method lowers the amount of storage that must be kept on-chain. By using specifically targeted inflation, state rent is enforced, encouraging proper state administration on-chain and giving miners a steady, reliable long-term source of income. CKB is a representation of innovation and long-term sustainability in the blockchain sector as it gets closer to its first halving event.