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What is Hybrid Exponential Minting?

Crypto Terms Glossary: What is Hybrid Exponential Minting?

Hybrid exponential minting is a method for minting coins utilized by the Filecoin network. In this model, 30% of rewards are distributed according to an exponential decay model, in which block rewards are greatest at the protocol's inception and decrease over time. 70% of rewards are distributed in proportion with the growth of the total storage capacity of the network. This model was developed to ensure the long-term viability of the Filecoin network because it rewards miners throughout the entire lifecycle of the network, in proportion to the utility they provide to the network.

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