POLKAMINE NETWORK — A new era arises — First multi-chain standard hash rate token protocol

5 min readJun 17, 2021

Data shows that the total bitcoin mining industry in 2020 was worth about 5 billion USD and that of Ethereum was 2.7 billion USD.
If we take Litecoin, Bitcoincash, Filecoin, and other mining currencies, the total value of this industry would be well over 10 billion USD.

More importantly, it is a rapidly developing sector whose value increases over time. However, despite the high value and vibrant growth of the mining industry, two issues need to be solved:

High market access requirements
Since the hashrate of the entire network is already at extremely high, the investment before production is staggeringly high, and new entrants
need to be very professional.
This makes it difficult for most small and medium-sized miners to survive. This also keeps most individual miners out of the market, who hope to generate stable revenue through mining.
Poor liquidity of funds
Most miners need to buy mining machines, which requires a large
amount of money. Moreover, these machines are difficult to resell, so miners do not enjoy a satisfying cash flow.

Insufficient mainstream solutions so far:

Centralized cloud mining pool
The existing solutions only barely solve the first problem. Moreover, opaque mining information and uncertain mining revenues always provide great room for criticism.
Decentralized HashRate Tokens
The existing projects that specialize in this solution have weaknesses such as, focus on one chain, influenceability of centralized mining pools or lack of standardization, which ultimately leads to the liquidity problem remaining as it is.

Polkamine Network is the first decentralized standard hashrate token protocol that solves these problems on multi-chains, such as Bitcoin, Litecoin, Ethereum, and Filecoin, and others.

In total, we find three different tokens in the Polkamine ecosystem:

MINE: native utility token of the Polkamine network (token sale)

pToken: standard hashrate token (can be integrated into cross-chain DeFi protocols)

wToken: wrapped output token (income certificate)

Polkamine network will standardize the mining performance of different mining pools for different mining projects and then issue different standard hashrate tokens (pTokens), such as:

pBTCM for the Bitcoin standard hashrate token
pETHM for the Ethereum-standard hashrate token
pFILM for the Filecoin-standard hashrate token
pLTCM for the Litecoin-standard hashrate token

(more chains to follow as well)

Each standard Hashrate token is a synthetic token that represents the basic standard mining performance of a unique mining blockchain and is also backed by standard mining performance.

The pTokens could be integrated into cross-chain DeFi protocols (such as DEX, lending protocols on Polkadot, Ethereum, HECO, Binance Smart chain, etc.), which will increase the liquidity of pTokens.

To fully address the liquidity issue, Polkamine Network will issue another synthetic token, called mToken, for miners who deposit the issued pTokens into Polkamine’s contract to receive mining rewards.
The mTokens can be used in various DeFi protocols for trading or issuing collateral.

Any mining pools outside the Polkamine Network can freely join in or exit the standardized mining pools on the Polkamine Network after mining power standardization.

Polkamine Network will also use Substrate’s OCW (off-chain oracle workers) to monitor the on-chain revenue data of various mining projects in real time and upload the revenue information to ensure the information is open and transparent to miners.

In addition to pTokens, there is another type of asset called Wrapped Output Tokens (wTokens). wTokens are tokens issued on the Polkamine chain that are anchored at a 1:1 ratio to tokens produced by the Polkamine standard mining pool. You can consider wTokens as an income certificate in the mining products of the Polkamine standard mining pool.
wTokens include wBTCO, wETHO, wLTCO, wFILO, etc., each anchoring BTC on the Bitcoin chain, ETH on the Ethereum chain, LTC on the Litcoin chain, and FIL on the Filecoin chain in a 1:1 ratio.

Since different mining projects use different chains, only by issuing 1:1 mapping assets wTokens can Polkamine write all mining revenues of mini-miners to the chain and achieve automation.

Introducing Mini Miners

Mini Miners are the miners of Polkamine Standardization Mining Pools.

They need to purchase standardized Hash Tokens, which represent a certain HashRate. Meanwhile, they can claim the output income of the mining pool by their possessions.

Introducing MINE Token

MINE Token fulfills the role of core utility in the Polkamine Network ecosystem. Its functionality includes, but is not limited to:

Pledge:
MINE is used as a pledge for mining pools that wish to join the standardization of mining pools in the Polkamine Network.
Preemptive right:
the retail miners who have deployed a certain amount of MINE tokens have the right of first refusal for the initial sale of pTokens.
Governance and voting:
MINE token holders can create proposals and vote on them.
Token burning:
A certain percentage of transaction fees and commissions will be burned in the form of MINE tokens.
Liquidity Reward:
The market makers who provide liquidity for pTokens and MINE tokens on DEX will be rewarded with MINE tokens.

Roadmap

Value Capture

The standardization and tokenization business in the Polkamine network will be an important value capture scenario for MINE, providing fundamental value support for the token.

1) MINE token is the fuel of the Polkamine HashRate economy. All related transactions on the Polkamine chain will require MINE tokens as a fee or commission.

2) 70% of the income is used for buyback and destruction on the secondary market, which keeps the inflation rate of MINE tokens quite low. It is believed that the economy is sometimes even deflationary.

3) To become a governor of PolkamineDAO, you need to use MINE tokens.

4) To initiate an on-chain proposal, community members must deploy a certain amount of MINE tokens.

Yield Mining Programs

To encourage the adoption of pTokens, Polkamine network has reserved 40% of the tokens for mining incentive campaigns during the initial issuance of MINE tokens.
The netwerk will launch corresponding campaigns when the standard hashrate pool is created and launched. For community members who participate in pTokens staking and provide liquidity for pTokens on DEX, Polkamine network has prepared airdrops.

The following players will receive rewards:
1) Mini-Miners who participate in pTokens Staking (20% of all incentives)

2) Users who participate in pTokens Staking (30%)

3) Users providing liquidity for pTokens and wTokens on DEX (50%)

The detailed reward plan will be announced to the community before the launch of pTokens.

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