Meer Token Distribution and Reward Reduction Strategy Explained

The initial distribution of Meer tokens includes a genesis output covering 24% of the total supply, with the founding team holding around 4%, equivalent to 8.4096 million Meer, and the Medina testnet phase accounting for about 20%, or 42.048 million Meer. The remaining 76% is allocated through Proof of Work (PoW). Unlike Bitcoin's halving model, Qitmeer employs a "smooth decay" strategy for block reward reduction. The distribution structure emphasizes a significant initial allocation to the founding team and testnet participants, which could impact token scarcity and vesting schedules. The predominant PoW output suggests mining-based issuance, with a reward reduction method designed to be less abrupt than halving, potentially resulting in a more predictable supply curve. Understanding these distribution mechanics is fundamental for assessing Meer's inflation trajectory, scarcity potential, and mining incentives. The smooth decay approach may help in maintaining network stability and investor confidence by avoiding sudden reductions in rewards. Investors and stakeholders should consider how the distribution and reward reduction models influence long-term token value, network security, and decentralization. Regular updates and transparency in reward adjustments are crucial for market confidence in Meer.