Definition
Halving is a predefined event in a cryptocurrency’s code that reduces the rate at which new units of the asset are created, typically by cutting rewards in half. It most often applies to block or validator rewards, meaning participants who help secure the network receive fewer new tokens after each halving. By slowing the creation of new tokens over time, halving directly shapes the asset’s supply schedule and long-term tokenomics.
In decentralized finance and broader crypto markets, halving is an important concept because it influences how quickly circulating supply grows. This change in supply growth is separate from mechanisms like burn, which permanently remove tokens, or mint, which create new tokens outside of a scheduled halving. Halving events are usually predictable and transparent, since their timing and impact are encoded in the protocol rules from the start.
In Simple Terms
Halving is like turning down the tap on how fast new tokens are added to a crypto’s total supply. Before a halving, network participants receive a certain amount of tokens as a reward, and after the halving they receive exactly half that amount for the same activity.
Unlike one-time burn or mint actions, halving follows a regular schedule built into the project’s tokenomics. This makes it a predictable part of how the asset’s supply changes over time, helping users understand how quickly or slowly new tokens will enter the market.