The Zilliqa team proposed halving mining rewards in a statement on X on Monday. This move aims to encourage the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS).

However, this change may have negative effects on the market. The reduction of mining rewards will reduce miners’ income, which may jeopardize network security. In addition, there are uncertainties about the expected benefits of the transition to PoS.

In general, it is predicted that such radical changes may have negative effects on the market in the short term and shake investor confidence.