Halving is a pre-programmed event in certain cryptocurrencies where the reward given to miners for validating transactions is reduced by half.
Its purpose is to slow the rate at which new coins are created, reducing supply over time and increasing scarcity.
Example:
In Bitcoin, miners once earned 6.25 BTC per block.
After a halving event, the reward was reduced to 3.125 BTC per block.
This means fewer new Bitcoins are created each day, reducing supply and increasing scarcity over time.
