Why doesn’t Bitcoin Cash have a tail emission?

Bitcoin Cash does not have a tail emission, maintaining the original Bitcoin algorithm's design that caps the total supply at 21 million coins. The decision to avoid a tail emission is grounded in the core principles outlined in Satoshi Nakamoto's original whitepaper. The goal is to create an inflation-free currency that does not devalue the BCH of current holders. Bitcoin Cash relies on blockchain security in Proof of Work blockchains through a combination of transaction fees and new coin rewards. The initial coin reward is seen as a temporary measure to bootstrap distribution and security, not as a permanent feature. Therefore, in the long term, network security will be paid for completely by spenders and not holders, aligning the economic incentives appropriately.

The avoidance of tail emission is a deliberate choice to adhere to the concept of a capped 21 million coin limit, a key attraction of Bitcoin as a monetary system. Proponents argue that tail emission schedules merely extend the taxation of holders to address the lack of sustainable security through fees contributed by spenders, without fundamentally solving the underlying issue. Changing the 21 million coin limit in Bitcoin Cash is considered a significant and destructive move, as it would undermine the community's social contract and its commitment to core principles. The community emphasizes the importance of facing the challenge of sustainable security by promoting adoption and encouraging spender fees to cover mining costs, rather than resorting to a tail emission model. Advocates of a tail emission economic model are advised to explore other cryptocurrencies that already embrace this approach rather than pushing for such a fundamental change in Bitcoin Cash.

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