Halving, in the context of blockchain technology, refers to a programmed event that reduces the rate at which new cryptocurrency tokens are created and added to the blockchain. This event typically occurs at regular intervals and is an essential feature of many cryptocurrencies, most notably Bitcoin. Halving is also the term used to describe a reduction in the reward that miners receive for adding new transactions to a proof-of-work (PoW) blockchain. It involves periodically decreasing the block rewards given to miners. This mechanism is implemented to maintain a stable issuance rate for the crypto asset until it reaches its maximum supply. 
The halving process operates based on the principles of supply and demand. The objective is to regulate the supply in order to enhance the value of an asset in response to either a consistent or fluctuating demand. Halving is thought to generate scarcity by reducing the number of new tokens or coins entering circulation at any given time.
Halving is commonly related to native crypto assets such as Bitcoin, BitcoinCash, and Bitcoin SV. However, this mechanism can be implemented in various systems that involve tokenization and scheduled supply. Cryptocurrency projects often incorporate the concept of halving into their tokenomics strategy. 
Not all cryptocurrencies have halving events, and the specific rules, including the frequency of halvings and the reduction in block rewards, can vary from one cryptocurrency to another. For example, Ethereum has another halving mechanism in comparison to Bitcoin.
Major Halving Event
The Bitcoin (BTC) halving is a recurring event that takes place every four years. During this event, the rate and rewards for mining Bitcoin are reduced. The block mining reward was reduced from 50 BTC to 25 BTC in the first halving that was held in 2012. It further reduced to 12.5 in 2015, and 6.25 in 2020, and is expected to drop to 3.125 in 2024.  The concept of regulating Bitcoin minting and maintaining its deflationary nature was introduced by Satoshi Nakamoto, the founder of Bitcoin. Through the halving event, the rewards received by miners are limited, which in turn controls the frequency at which new BTCs are generated and, consequently, the overall inflation rate of Bitcoin.
The next Bitcoin halving is to happen in 2024, following the four-year interval since the previous event in May 2020. After a total of 32 halvings, the process will cease, and no further BTC will be generated. This will mark the point when the maximum supply of 21 million BTC is reached. 
Ethereum Triple Halving
During the Proof-of-Work era, Ethereum’s tokenomics included an unlimited asset supply system in which the coins in supply grew by a certain percentage per year through rewards issued to miners. Later, the reward per block mined was modified according to community agreements and new supply systems were installed through mining software upgrades.
The EIP-1234 passed and implemented in 2019, reduced the miners’ reward per block to 2 ETH and set the annual increase in supply at 4.3%, with an average of 15,000 ETH issued per day.
Ethereum triple halving is a mechanism that cuts the ETH supply by more than 80%, similar to three consecutive Bitcoin halving events. This reduction occurs in stages of the reduction in issuance, staking, and coin burning as Ethereum transitions to Proof-of-Stake.
The "triple halving" and its impact on the circulating supply of ETH became fully functional on the Ethereum blockchain when it turned its back on the pioneer Proof-of-Work (PoW) algorithm and transformed into a Proof-of-Stake (PoS) blockchain as part of the Ethereum upgrades on September 6, 2022. Though the total supply of ETH remains unaffected by this upgrade, the shift to a proof-of-stake consensus mechanism could indirectly influence supply dynamics.
Decreased Token Issuance
The triple halving started with ETH issuance to miners. Before the Merge, the ETH yearly issuance rate was roughly 4%, which was used to motivate miners to verify the network by covering their computer and energy expenses. Post-Merge, this issuance rate has dropped to 0%, reducing the inflation rate by 4% and decreasing the quantity of ETH paid out to miners and on the market.
ETH Gas Fee Burning
The burning mechanism, which was introduced in the EIP-1559 upgrade, represents the second pillar of the triple halving. The implementation of EIP-1559 has led to the burning of a portion (70%) of the transaction fees on the network. These fees are sent to an inactive address, thus removing them from circulation. After the Merge, a total of more than 2 million ETH has been permanently removed from circulation.
The PoW system favors higher computing power, so to stand a better chance of winning the right to validate a block, a miner will need to set up a mine within or above the average power of computers on the network. Switching to PoS, the Ethereum network embraced a system that depends more on the assets committed to the network rather than a validator’s computing power. Validators with more assets staked to their nodes stand a higher chance of being chosen to validate a block. The Beacon Chain is the staking chain of the Ethereum blockchain. With The Merge, the Beacon Chain was merged into the Ethereum mainnet. 
Effect of the Triple Halving
In February 2023, the net supply change of ETH was between 1,100-1,300. That is, the difference between the daily supply and the Ethereum put away from active circulation has stayed below 1,500 ETH since the merge was completed in September 2022. The supply pattern showed an overall decrease in the supply rate. A negative swell was even recorded between November 9, 2022, and December 1, 2022, with net supply going as low as -0.005 on November 12, 2022. A negative swell means that more coins were removed from circulation than newly issued coins.
Litecoin Halving 2023
Litecoin, like Bitcoin and Ethereum, also underwent halving events in August 2015. Litecoin halving takes place once every 840,000 blocks, typically spanning a period of approximately four years. 
When Litecoin launched on October 7, 2011, the block reward for miners was set at 50 LTC. Following the initial halving event on August 25, 2015, the reward for LTC was decreased to 25 LTC and subsequently reduced to 12.5 LTC. The block reward for LTC was reduced from 12.5 LTC to 6.25 LTC following the halving event on August 2, 2023.
The importance and purpose of Litecoin halving is due to its major effect on the price, thus the market capitalization of Litecoin. The purpose behind the halving event in these kinds of blockchain networks is to control the inflation rate of Litecoin and try to create scarcity in the token supply, making it more valuable over time.
The reduced rewards for mining incentivize miners to continue contributing to the network while limiting the number of new Litecoins introduced into circulation. Thus, with this halving completed, Litecoin miners now receive about 6.25 LTC instead of the 12.5 LTC that they are receiving now for the same amount of work. So the reduction in the rate of supply, in effect, creates a scarcity in the system, even if every other variable remains the same, resulting in an increase in demand from investors and, thus, an increase in the price of the crypto asset.
Bitcoin Cash (BCH) Halving
Bitcoin Cash is another fork of Bitcoin that aims to offer larger block sizes and lower fees. Block halving events happen every 4 years or 210,000 blocks on the Bitcoin Cash blockchain. Bitcoin Cash halving occurs at the same time as Bitcoin halving since they share the same genesis block and block height. The last Bitcoin Cash halving was in April 2020, when the block reward was reduced from 12.5 BCH to 6.25 BCH. The next Bitcoin Cash halving is expected to happen in 2024, along with Bitcoin halving. Bitcoin Cash halving has not had a significant price impact so far, as it faces competition from other Bitcoin forks and scalability solutions.
Zcash (ZEC) Halving
Zcash is a privacy-focused cryptocurrency that uses zero-knowledge proofs to enable anonymous transactions. Zcash halving occurs every 840,000 blocks, which is roughly every four years. The last Zcash halving was in November 2020, when the block reward was reduced from 6.25 ZEC to 3.125 ZEC. The next Zcash halving is expected to happen in 2024 when the block reward will be further reduced to 1.5625 ZEC. Zcash halving has also coincided with a major network upgrade called Canopy, which introduced a new development fund and removed the controversial founders’ reward. 
Dash (DASH) Halving
Dash is another privacy-focused cryptocurrency that uses a two-tier network of masternodes and miners to enable fast and anonymous transactions. Dash halving occurs a 7.14% reduction every 210,240 blocks (approx. 383.25 days), which means that on average, block reduction happens every 365 days. As of 2023, the current block reward was decreased from 2.49 DASH to 2.3907 Dash + transaction fees after the last reward reduction on Jun 23, 2023. The next Dash halving is expected to happen on June 27, 2024. Dash halving has been followed by a strong price increase in the past, as it reduces the inflation rate and increases the demand for masternodes. Instead of halvings, which cause a big and sudden change for the users, Dash uses small decreases more often which is less stressful for the users.
Horizen (ZEN) Halving
Horizen is a fork of Zcash that aims to offer a platform for decentralized applications and sidechains with enhanced privacy features. Horizen halving occurs at the same time as Zcash halving since they share the same genesis block and block height. The last Horizen halving was in November 2020, when the block reward was reduced from 12.5 ZEN to 6.25 ZEN. The next Horizen halving is expected to happen in 2024, along with Zcash halving. Horizen halving has not had a noticeable price impact so far, as it competes with other privacy-oriented projects.
Bitcoin Diamond (BCD) Halving
Bitcoin Diamond is another fork of Bitcoin that aims to offer faster transactions and lower fees. Bitcoin Diamond halving occurs every 210,000 blocks, which is roughly every four years. The last Bitcoin Diamond halving was in August 2020, when the block reward was reduced from 125 BCD to 62.5 BCD. The next Bitcoin Diamond halving is expected to happen in 2024 when the block reward will be further reduced to 31.25 BCD. Bitcoin Diamond halving has not had a significant price impact so far, as it faces low adoption and liquidity issues.
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