The halving is a scheduled event in the protocol of certain blockchains, mainly Bitcoin, which cuts the reward given to miners for validating blocks in half. Its goal is to control the issuance of new units and limit the inflation of the network.

For Bitcoin, a halving occurs every 210,000 blocks, or approximately every four years. During each halving:

• The BTC reward per validated block is halved.

• The rate of issuance of new bitcoins slows down, until it reaches the fixed cap of 21 million BTC.

Examples of past halvings:

• 2012: reward decreased from 50 BTC to 25 BTC,

• 2016: from 25 BTC to 12.5 BTC,

• 2020: from 12.5 BTC to 6.25 BTC,

• 2024: reduction from 6.25 BTC to 3.125 BTC.

Why it matters:

• The halving creates programmed scarcity, reinforcing Bitcoin's image as a store of value.

• Historically, halvings have been followed by bull runs, as the reduction in available supply can stimulate demand.

Other crypto-assets in Proof of Work may also incorporate a halving mechanism or decreasing issuance to control their inflation.