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Economic Model

The monetary policy of Karlsen closely resembles the Kaspa model, yet it incorporates a more gradual deflation rate to better suit the scale of small GPU miners.

It has two phases:

  1. Pre-deflationary phase: During a six-month period, each block yields a reward of 50KLS. The intended block creation rate is one block per second, although this rate varied during the mainnet's first weeks.
  2. Deflationary phase: The block reward undergoes a halving process annually, but this reduction is gradual rather than abrupt. Each month, the reward decreases by a factor of (1/1.4)^(1/12). This calculation is based on an initial block reward of 44 KLS.

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