TXZ Whitepaper
Technical specification and economic model
1. Introduction
TXZ is a proof-of-work cryptocurrency designed for predictable economics and sustainable mining incentives. Built on proven Litecoin codebase with MWEB privacy features.
Key Features
- Fixed Block Rewards: No halving schedule - consistent 20 TXZ per block
- Capped Supply: Maximum 50,000,000 TXZ
- Tail Emission: 2% annual inflation after max supply reached
- ASIC-Friendly: Scrypt algorithm for predictable mining
- Privacy-Ready: MWEB (Mimblewimble Extension Blocks) support
2. Economic Model
Block Reward Distribution
TXZ uses a fixed block reward model with no scheduled halvings. Each block reward is enforced at the protocol level:
- 100% to the block miner (20 TXZ per block)
Supply Schedule:
• Genesis Block: 5,000,000 TXZ (locked, unspendable)
• Blocks 1 - 2,250,000: 20 TXZ per block
• Total mined: 45,000,000 TXZ (from mining)
• Maximum supply reached: 50,000,000 TXZ
• After max supply: 2% tail emission (4.76 TXZ per block)
Tail Emission
After reaching the 50,000,000 TXZ maximum supply (approximately at block 2,250,000), the network transitions to a perpetual 2% annual tail emission:
- Purpose: Ensure long-term miner incentives and network security
- Rate: 1,000,000 TXZ per year (2% of max supply)
- Per Block: ~4.76 TXZ (1M TXZ / 210,240 blocks per year)
- Inflation: Fixed 2% nominal, decreasing real rate over time
Why No Halvings?
Traditional Bitcoin-style halvings create:
- Unpredictable miner revenue
- Potential security issues as rewards decline
- Market volatility around halving events
TXZ's fixed reward provides:
- Predictable mining economics
- Stable network security
- Sustainable long-term incentives via tail emission
3. Mining
Proof-of-Work Algorithm
Algorithm: Scrypt (same as Litecoin)
Difficulty Adjustment: Every block using DarkGravity Wave v3
Target Block Time: 150 seconds (~2.5 minutes)
Mining Incentives
Phase 1 (Blocks 1-2,250,000):
- 20 TXZ per block reward
- ~8,640 TXZ mined per day
- Expected duration: ~10.7 years at target block time
Phase 2 (After block 2,250,000):
- 4.76 TXZ per block (2% tail emission)
- ~2,057 TXZ mined per day
- Perpetual security subsidy
Network Security
The tail emission ensures miners have perpetual incentive to secure the network even after max supply is reached. This prevents the "fee-only" security model that creates uncertainty in other cryptocurrencies.
4. Technical Specifications
Blockchain Parameters
- Block Size: 4 MB (4,000,000 bytes)
- Block Weight: 4,000,000 units
- Transaction Version: 2 (BIP 68, 112, 113)
- Segregated Witness: Enabled from block 0
- MWEB Support: Available for privacy transactions
Address Formats
- Legacy (P2PKH): Starts with 'T'
- SegWit (Bech32): Starts with 'txz1'
- Script (P2SH): Starts with '3'
Network Ports
- P2P Port: 9333
- RPC Port: 19432
- Testnet P2P: 19335
- Testnet RPC: 19443
5. Privacy Features
MWEB (Mimblewimble Extension Blocks)
TXZ supports MWEB for optional privacy:
- Confidential Transactions: Hidden amounts
- CoinJoin-like Privacy: Transaction aggregation
- Stealth Addresses: Enhanced receiver privacy
- Opt-in: Users choose when to use privacy features
MWEB transactions occur in extension blocks, maintaining compatibility with the main chain while providing enhanced privacy for those who need it.
6. Governance
TXZ follows a conservative upgrade path:
- No Premine Development Fund: Fair launch with transparent premine allocation
- Community Driven: Changes require community consensus
- Protocol Stability: Core economics are fixed and immutable
- Open Source: All code is publicly auditable
7. Use Cases
Medium of Exchange
Fixed block rewards provide price stability for merchants and users.
Store of Value
Capped supply with tail emission balances scarcity with security.
Mining Investment
Predictable rewards enable better ROI calculations for miners.
Privacy Transactions
MWEB enables confidential transactions when needed.
8. Roadmap
- ✅ Genesis Block & Network Launch
- ✅ Mining Pool Infrastructure
- ✅ Block Explorer
- ✅ Web Wallet
- 🔄 Exchange Listings
- 🔄 Mobile Wallet
- 🔄 MWEB Activation
- 📋 Lightning Network Integration
- 📋 Hardware Wallet Support