Koin Mining Difficultly Increasing Exponentially.

in #leofinance3 years ago (edited)

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I turned my frequency down to 1 reward per day, and I found a 700 coin reward last night. Compared to my 4400 coin reward for 3 a week (once per 2.33 days, 1888 coins per day). Therefore, the difficulty has gone up and the reward pool is getting drained.

I'm getting very lucky during this operation because I'm finding rewards before the average time while the competition is very low. Some of the miners I know haven't found anything, and by the time they do the reward pool will be drained more and they'll make less Koins. :(

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Push & Pull of gas fees

On the one hand, you might want to set a low difficulty so you find rewards now rather than allow network hashpower and competition to increase. Mining Koin now in these first few days is clearly going to be the most profitable. However, every time you find a proof it costs $2. My friend had his set to find 4 a day and he was stoked to mine 100 coins, but that's currently only worth $5 for a $2 gas fee.

I know people who are starting to rent CPU power on the cloud to mine this thing. Koins are hovering around an average value of 5 cents, making mining still extremely profitable at the moment. If I mint 700 coins a day that's $35 and my computer costs less than $2 a day to operate in energy costs.

I was predicting a huge crash in price due to thin liquidity, but now I just think mining competition is going to increase. We'll have to wait and see as the uniswap pool gets bigger. It's raising the ranks.

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#4 not too shabby

It will probably take the #2 spot soon™.

High gas fees are a good thing for Koinos

This is the one situation where these $2 gas fees are really adding up. The more gas people pay for Koins, the less they'll be willing to sell at a loss. ETH gas gives Koin more value and artificial scarcity. Pretty weird.

Proof Frequency

I think for now during these early days one per day is a pretty safe bet. Once competition increases it will be safer to solve harder proofs once the mining is less profitable. Obviously mining $35 a day for $2 energy costs still isn't sustainable.

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Only 6.5 ETH in the pool.

But climbing very steadily and quickly. This is pretty much the only way to buy/sell Koin. Remember when EOS was 50 cents a coin? I'm getting flashbacks. Also, EOS distributed what? Like a billion coins? Looks like Koinos will only be around 100M... ten times less supply... for ten times less the current token value. We could be in for a wild run.

In the last 24 hours providing 0.4 ETH to the pool, I've already generated $1 in farmed fees. That's a 40% ROI on a microcap new project with near zero volume. Obviously, these numbers will be highly volatile going forward, updates will follow.


So not only am I mining x30 the energy cost of my 'mining rig' I'm also farming the Uniswap pool for 40% APR. Pretty wild.

Again, all the math points to this being unsustainable, so we'll see how it goes. Then again, this six-month premine could be in the middle of a Bitcoin mega-bull run, so speculation could get wildly out of control.

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Gather round

I'm calling my friends up to mine this thing. I know plenty of people with idle CPUs. I'm going to share my funding account with them so they won't even have to set up a metamask or add gas fees to it. I'll pay for that. They'll also be mining their rewards into my wallets so I can keep track of who mined what. I'll have to do the math at the end of the 6 months to see who owns what. Should be interesting. I'll be the custodian... basically a mini haphazard mining-pool.

Funny story

I just mined another 630 coins... man I'm getting lucky. Added all my coins to the Uniswap pool once again. Funny how the gas fees to add to the Uniswap pool are actually slightly less than claiming a Koin proof and earning the reward itself.

Conclusion

Once again we see wild speculation in the crypto markets.
When moon?
Soon™

EDIT:

Forgot to mention there is a new miner version out. Don't know what they changed but I predicted they'd release a new version soon to all the bugs. Bugs are fixed and the default Ethereum Endpoint is correct.

v1.0.1

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I must confess this is pretty interesting and even if I followed these series I didn't understood the mechanics too well. It is like you mine KOIN by selling ETH..? In the same time do you think is still opportune to invest in it?

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You mine Koin with the mining software (high CPU/cache usage), but you can't claim a reward (proof) without posting it to the ETHEREUM blockchain, which costs gas ($2). The harder the proof is you solve the more Koin the reward is worth.

Haha! You have the winning tickets mate! I am probably going to up my proof for a little bit. Did 1 per day today and found 400 KOINS to take my tally over 2k so that's more than I thought I'd get! Now I'm just letting the beast breathe for a bit - poor PC has been through the ringers recently, probably wonder what hit it!

I suspect more people will jump in the next couple of weeks as word spreads and then people with like a million PCs will mine it to buggery (that's my TA, you're welcome)!

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Nice, I assume you have around 3-4 MH/S considering that reward.

Yeah man, actually I'm clocking about 4.5-5 MH/s most of the time. Just tried a test and blasted out 48 PF/d and it got 10 KOINs but that will be a very expensive way to mine so will probably stick to one per day for the next 7 days or so and then assess from there!

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I'm kicking myself that I didn't start on the very first day like I originally planned. Still, I got it all set up last night, put the proof frequency to 2 and woke up to apparently 816 KOIN.

I still don't know how to actually send it though, wouldn't I need the token contract address? Haven't seen that listed anywhere. As for the UNI part of your article, I'm wholly ignorant but sounds like a potentially smart way to leverage mined KOIN.

0x66d28cb58487a7609877550E1a34691810A6b9FC

Add this Koin contract to metamask.
assets (scroll down)
add token
custom token
Token Contract Address

Aw man! You're killing it! Apart from my first two proofs, I haven't gotten anything. I'm still on 650 Koins. I've pretty much been hitting 1.5 MH/s since the very first minute.

Don't be surprised if Koin is worth like $10 in a year during the mega-bull-run mania. If so... sell :D

Interesting. But this will not last for long

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Which part? Mining competition has already gone x3 in the last 24 hours. Just mined a reward for 260 today that would have been 700 yesterday.

it's working out for me quite as well. Good idea to provide liquidity; I think I'll hodl this coin for quite some time

Mining while using my first gen i3 piece of junk is extremely painful...I was thinking of buying a new pc lately and it seems that Koinos mining will give me that push...24 core Ryzen incoming

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Yeah those CPUs are beast I haven't wanted a new CPU ever until now.

Looks like you're having great success so far. I can't tell if you're lucky or not, but it does seem like you have a good approach. The "gather round" you mention sounds like a very good idea. I haven't started to mine Koin as of yet, I haven't had time to really look into this whole thing so far, but the fact that you can reduce the load of your CPUs, and still use your machine while mining sounds great.

Do you think it's wise to set everything up and start to mine in the coming days, for someone "small" so to speak, or do you think it would be a waste of money?

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Even if HASH competition goes up x4 it will still be worth it to mine on 4 year old PCs. We might have to solve harder problems to avoid gas fees but it is still totally worth it. The 'only' overhead cost is the $2 gas fee, which is way higher than the energy costs. This can be reduced by targeting a once/twice per week reward.

I have an i7-6700K. I use it for whatever things I do, but I could certainly have it idling for days, just to mine Koin. I guess I have to look into this a bit more. It sounds tempting.

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I think "idling" is not a good descriptor for "running at 100%" :D

Haha, perhaps I should've used another word for it.. :D

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also I've been EXTREMELY lucky so far. I should hit a dryspell soon.

If you don't mind my asking, what's your hashrate?

If I let the miner use all cores I get near 7 MH/s
If I'm playing video games (remove 3 threads of 8) its 5 MH.
If I take away one thread it's 6 to 6.5

Does the mining software use 100% of your cpu or is that just me? Lol

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It's pretty much using 100% of mine.

Yes it does. You need to take away access to 1 core to stop the lag (at least on my computer).

https://peakd.com/leo/@edicted/a-little-bit-more-on-koin-mining

Damn, you're really lucky! I was too - in the first days. Now it's gone to a small number of coins pretty rarely. Have my PF - 2.

I have a bit over 2K though so it's not that bad. If the coin goes rocketing, I'm all about that gratitude for the opportunity.

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