Liquidity mining refers to the act of providing liquidity through cryptocurrencies to Decentralized Exchanges (DEXs). Eliminating liquidity problems in cryptocurrency mining comes with several advantages. With MINE Network and its robust protocol, individuals in different categories ranging from gamers, collectors to miners have the added advantage of enjoying a fully-integrated, hash-rate-based environment that provides the foundation for seamless machineless mining.
Intro Mine Network
Mine Network, an innovative, multi-chain, hash-rate token protocol, seeks to address miners’ liquidity challenges. This network securely connects different worlds to provide one consolidated, open-source protocol with multiple mining options through their traditional dApp and within their unique and innovative Metaverse: The MINEverse.
This project offers a free, open-source protocol that connects the worlds of DeFi, NFTs, and GameFi. Crypto enthusiasts and token holders across the globe can benefit from three key features. First, the project tokenizes real hashrates and issues cross-chain multiple assets. In addition, it features its unique metaverse, referred to as the MINEverse, which provides a convenient, industry-changing bridge between mining and the GameFi space.
As a key objective, MINE Network seeks to promote an increase in cash flow for the mining industry while at the same time lowering barriers to entry for retail miners. Mining is a fast-growing industry, encouraging cryptocurrency enthusiasts and investors. As well as high requirements for newcomers, the mining industry also faces a shortage of liquidity among established miners. In order to address these challenges, Mine Network has put considerable effort into finding a solution.
MINE Network offers standardized hash-rate tokens, pTokens, which tokenize the mining power from PoW-based cryptos. Standardized hash-rate tokens are synthetic tokens representing a part of mining power, collateralizing the token. To better understand the operations of Mine Network, it is important to identify and understand the gap it aims to fill in the mining industry.
Mining Industry Challenges and Mine Network Solutions
Cryptocurrency mining in mining-based projects for Bitcoin and Ethereum are facing a lack of liquidity for their assets.
MINE Network seeks to solve this problem in the mining industry by helping miners to liquefy their assets. To meet this objective, Mine Network issues a standard hash-rate token that comes with the added advantage of allowing individuals to trade the pTokens at any time on CEXs and DEXs. To further promote liquidity, individuals and investors can collateralize their tokens and borrow USDT.
- Lack of Standardization
The market faces challenges regarding standardization, which leads to scaling issues. It is therefore important to bring the mining ecosystem to the level of acceptance across all mining projects.
To help solve this problem, Mine Network offers an open and tokenized mining pool, making it free to access or exit. It will look into standardizing aspects such as energy consumption ratio and mining machines. As such, many factors are considered to help actualize the standardization process.
Mine Network project stands out with several competitive edges. It features DeFi on multiple chains, different from many other projects (DeFi on Ethereum or self-developed chains). In addition, the project features a standardized hashrate and owns a governance token. All data is written to the chain for easy accessibility and allows for a third-party audit to promote transparency.
What are MINE Network’s ecosystem tokens?
To solve liquidity and standardization concerns, MINE Network is offering cross-chain hashrate tokens called pTokens. pTokens are defined as tools that enable DeFi composability for every blockchain and token. As a result, they can allow crypto token holders to easily access dApps without necessarily selling their crypto assets. MINE Network has three tokens that help promote liquidity.
This token is anchored as the standardized hash-rate token, and they may include pBTCM and pETHM, from which they provide the proof of ownership of the standard hash-rate. These tokens represent the corresponding amount of hash-rate in Mine Network standardized mining pool. pTokens are issued on the network’s blockchain, and it is only with an additional hash-rate in the network standard mining pool that they can be further issued.
This serves as an Output Reward token that is directly related to the native mining output. These tokens have the advantage of being used in various DeFi protocols for trading and issuing collateral. As MINE Network’s synthetic tokens, they help solve the liquidity problem for miners by rewarding them for staking the issued pTokens into the network’s contract.
This project uses MNET as its native utility and governance token. In addition to providing a solution to the liquidity problem, MINE Network also seeks to fight climate change and global warming by giving miners the privilege to tokenize their tokens more if they are using new energy sources. The MNET functionality includes being used as a pledge by miners who want to join the MINE Network standard mining pools. As a governance token, MNET token holders have the right to create and vote for proposals. A provided percentage of transaction fees or commissions are burned in the form of MNET tokens for miners.
MNET tokens on decentralized finance allow miners to be rewarded with MNET tokens to address liquidity concerns. The above MINE tokens work together to ensure the functionality of the Mine Network and ensure that miners do not face liquidity problems.
An explanation of the MINE’s network pool
MINE Network, Standard Mining Pools, are specified to suit the needs and requirements of the project. With three tokens as indicated above, it is evident that they are mined differently, thus calling for different machines and giving a different standard for each token.
There are two sources for the total underlying hash-rate of the Mine Network, namely, the Self-built Mining Pool (SMP) and the Corporation Mining Pool (CMP).
The Self-built Mining Pool maintains, operates, and manages the multiple mining pools through a single underlying PoW blockchain. Corporation Mining Pools (CMP) serve the purpose of joining Mine Network standard. CMP can apply to join the network standard mining pool to help obtain their hash-rate tokens as long as they meet the required standardization conditions.
Tokenomics of MINE Network
MINE Network’s native token is MNET.
MNET’s total supply is 1 billion worth of tokens, and its distribution was set to be completed through ERC-20 as the form of creating and issuing smart contracts and testnet. A summary of the token allocation is as indicated below.
Total supply – 1 billion $MNET tokens, which is allocated as follows:
|Allocated to||Percentage %||Vesting|
|Team||11||12 months’ cliff, then monthly vesting over 12 months|
|Advisors||3||6 months’ cliff, then monthly vesting over 6 months|
|Seed sale||10.5||3 months’ cliff, then weekly vesting over 10 months|
|Private sale||16.5||1 month cliff, then weekly vesting over 8 months|
|Public sale||3||25% unlocked on TGE then monthly vesting of 25%|
|Parachain bonding||15||Unlocks when PLO starts, then 5% monthly vesting|
|Marketing and liquidity fund||20.5||3% unlocked on TGE for Initial Exchange Liquidity, then 5% monthly|
|Operational reserve||20.5||4% unlocked on TGE and then 5% unlocked monthly|
The Token Sale Details
|Token sale||Price||Percentage %||Amount||Vesting|
|Seed sale||$0.006||10.5||$630,000||3 months’ cliff, then weekly Vesting over 10 months|
|Private sale||$0.008||16.5||$1,320,000||1 month cliff, then weekly vesting over 8 months|
|Public sale||$0.010||3||$300,000||25% unlocked on TGE, then monthly vesting of 25%|
Detailed information on the tokenomics can be seen HERE.
Various IDO platforms have launched MINE Network. Earlier in October, MoonStarer announced their IDO launch, saying, “We usually announce our IDO launch partners within a week or so of their launch dates, but this time, we felt compelled to do things a bit differently. We simply could not wait to share that the great folks at Mine Network have selected us as one of their IDO launchpads. We strongly believe in their vision to revolutionize the mining industry and the initiatives they put in place to make it happen.”
What is MINE Network’s Tokenization process?
MINE Network tokenization process is broken down into four stages. This process occurs after the mining pool is standardized. After standardization, the mining pool applies for tokenization at MINE Network DAO. This stage identifies mining pools for miners. Once the miners apply with sufficient hash-rate, they are accepted into a Cooperation Mining Pool (CMP). With sufficient hash-rate, these mining pools can standardize and tokenize locally.
On the other hand, for miners whose hash-rate does not reach a specified level, it calls for the transportation of the mining machine to the nearest CMP mining pool for standardization and tokenization.
The next stage is to perform an audit. MINE Network DAO members always appoint a team of professional auditors responsible for conducting on-site inspections of the mining machines. It is important to carry out the audit to ensure that all applicants meet the requirements. Once all the demands are met, the applicants can access the following step.
The next stage would be to sign a contract with MINE Network DAO to transfer ownership. There are two methods to select from when transferring ownership. The first option is to transfer ownership directly to the Mine Network DAO. This DAO network will now pay the mining pool using USDT or other stable coins through this option. This payment will confirm the ownership of the mining machinery, after which it will package the machines into Mine Network’s self-built mining pool. The second option would be to retain ownership but transfer the hashing power to the purchasing parties. This transaction is completed through pTokens via the Mine Network DAO. Therefore, the network serves as an intermediary that tokenizes the hashrate, after which it sells to mini miners. All trading activities are completed on the Mine Network’s platform. Original mining pools receive pay from the mini miners in USDT or stable coins.
The last stage of the tokenization process is the tokenization of the hashrate. After signing the contract, Mine Network DAO tokenizes the total hashrate of the applying mining pool. This stage is completed following the unit hash-rate against the standardized hash-rate. It is then that the DAO will provide pTokens.
How Mine Token Solves Liquidity Problems
Liquidity has remained a significant concern for investors and crypto enthusiasts alike. The introduction of hash-rate tokens has gained favor in the crypto sphere to curb this concern. However, it is essential to note that the concept of a hashrate token is relatively new in the market. This calls for users to adopt the new related products and applications to curb the issues related to liquidity problems. MINE Token seeks to solve the liquidity problem, especially in the secondary market. This ensures that pTokens have liquidity. Liquidity of pTokens in the secondary market is obtained through the following actions.
- Cooperation with popular centralized exchanges (CEXs)
MINE Token needs to be easily accessible to solve the liquidity problem. The best way to meet this objective would be to cooperate with the most popular centralized exchanges. This will promote the listing of pTokens. By listing them on major centralized exchanges, more individuals will identify them and accept that their assets can easily be liquidated when or if the need arises. More exchanges are listing pTokens with the most recent exchange cooperation with KuCoin. As per an official tweet, Mine Network indicated, “We are now LIVE on KuCoin! It’s official, $MNET is officially fully LIVE and Trading on @kucoincom.”
- Secondary market participation in the creation of pTokens
To solve liquidity problems, it is essential to ensure that pToken prices remain stable. To meet this objective, Mine Network will take an active role in participating in the liquidity market-making of pTokens, not just in the initial market but also in the secondary market. Price stability preserves the purchasing power of MNET tokens; thus, investors do not have to worry about losing the actual value of their assets.
- Issuance of pToken-related trade pairs
pToken related trade pairs seek to mitigate potential losses by comparing prices between different crypto tokens. Pairing assists in identifying the relative worth of crypto tokens. In this case, pToken related pairs will help push the MNET Token, especially considering it is relatively new in the market. The pairs can be traded on Uniswap, as well as on other decentralized exchanges.
Crypto enthusiasts, especially crypto token miners, have been concerned about liquidity problems. As investors seek to identify additional income streams, it has been difficult to collateralize crypto tokens and assets. Mine Network has solved the ongoing liquidity problem and standardization concerns. Individuals can trade its pTokens on both centralized and decentralized exchanges simultaneously. The project encourages miners to use pTokens in various decentralized finance protocols with the added advantage of operating on multi-chains to address liquidity problems.
In addition to providing a solution to the liquidity problem, Mine Network also combats climate change by giving miners the right to tokenize their tokens more if they use renewable energy. Through its decentralized protocol, along with community autonomy, crypto token owners can also benefit from the network’s full transparency. In summary, Mine Network is a decentralized standard hashrate-token protocol seeking to assist miners in solving their liquidity problems on multi-chains through an innovative multi-layered approach that includes a wide range of cryptocurrency’s most popular niches: Gamefi, Metaverse, NFTs, Hashrate tokens, and more.
Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
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