Announcement of Miner Migration Progress and Mining Output Resume Plan
A record drop (-27.94%) of Bitcoin mining difficulty has been witnessed due to an intensified province-wide crackdown against cryptocurrency mining in Sichuan, China since 18, June. Halt of mining operation brought huge challenges to Mars Project. After 50 days on solution seeking and implementing, Mars project found its way back into operation in a timely & orderly fashion.
Mars team has made tons of efforts on the decentralized deployment of Mars underpinned mining rigs regardless of the cost and has faced many difficulties on risk management of the project. Firstly, huge volume of mining rigs to be migrated, many shipment destinations and big amount of upfront capital expenses. Secondly, the recurrence outbreaks of COVID-19 impacted on both domestic and international logistics. Thirdly, frequent loading/unloading, multiple stopovers and long-distance transportation caused damage to some mining rigs (more than 20% miners need to be repaired according to the current stats), and surge of mining rigs overhaul and shelving dramatically intensified the workload on local operation & maintenance staffs.
Current Progress
As of the release of this announcement, all the Mars Project miners in China have been removed from the shelves; ash removal and primary inspections also completed. Miners have been transported to various international logistics distribution centers and have been/will be sent in batches to the hosting sites that met our standards (some has been arrived in the sites); miners with varying damages all been sent to repairing centers nearby and will be shipped overseas in time.
Current online Bitcoin miners (equivalents to 39,900 TH/s) and Ethereum miners (equivalents to 252,000 MH/s) are running smoothly in multiple mining sites. It is expected that online rate would be duplicated in incoming 2 to 3 weeks and will keep rising as all machines would be set in place soon.
Mining Output Resume Plan
The actual output depends on the “Online Rate” (*Online Rate = Online Hashrate / Hashrate Certificate Circulating Supply * 100%) until 100% of the output is resumed. Unlike the conventional online rate adopted by mining pools which indicates the real-time status of mining rigs, the “Online Rate” of hashrate certificates is a visual representation of the migration progress and will constantly increasing. On the other hand, the “Depreciation Rate”, an indicator of the degree of performance decline associated with the hashrate certificate underpinned mining rigs, will be updated for the first time once the “Online Rate” hits 100%. Transportation fees, tariffs and other miscellaneous expenses are the main sources of the depreciation. Both “Online Rate” and “Depreciation Rate” can be found in the column of “Miner Parameters” at the bottom of https://mars.poolin.fi/#/exchange
- Scenario A: The Application of “Online Rate”
Assuming that Client Mike holds 1,000 pBTC35A and pETH18C each at the same time, the daily net profit of pBTC35A is 0.0000078 wBTC, and the daily net profit of pETH18C is 0.0000298 ETH. In the case of the “Online Rate” shown in Table 1 below, Mike will get:
pBTC35A Output: 1,000 * 0.0000078 * 18.59% = 0.00145002 wBTC
pETH18C Output: 1,000 * 0.0000298 * 25.19% = 0.00750662 ETH
- Scenario B: The Application of “Depreciation Rate”
Assuming that Client Jenna holds 500 pBTC35A and pETH18C each at the same time, the daily net profit of pBTC35A is 0.00000765 wBTC, and the daily net profit of pETH18C is 0.00003355 ETH. The “Depreciation Rate” for pBTC35A and pETH18C is 7%, 5%, respectively. Jenna will get:
pBTC35A Output: 500 * 0.00000765 * (1–0.07) = 0.00355725 wBTC
pETH18C Output: 500 * 0.00003355 * (1–0.05) = 0.01593625 ETH
The output resume (https://mars.poolin.fi/ : real-time on-chain distribution; Poolin Wallet: T+1 automatic settlement) will start at 23:59:59, August 16, 2021, Singapore time (GMT+8), please refer to the Table1 for the online rate of the primary output:
By then, in https://mars.poolin.fi/, vaults ‘BTC Gold01’ and ‘BTC Gold01 (LP)’ will resume the output of wBTC; vaults ‘ETH Platinum01’ and ‘ETH Platinum01 (LP)’ will resume the output of ETH. In Poolin Wallet, vault ‘BTC Gold01’ will resume the output of wBTC, and vault ‘ETH Platinum 01’ will resume the output of ETH.
Besides, ‘MARS Diamond03’ will also resume rewards accumulation simultaneously, which the output of wBTC (precisely speaking, wBTC plus ETH, settled in wBTC) corresponding to the unstaked hashrate certificates (data available at https://dune.xyz/poolinfi/marsproject_1) will be distributed to the users who staked MARS token, from 23:59:59, August 26, 2021, Singapore time (GMT+8), 10 days per accumulating period (https://mars.poolin.fi/: real-time on-chain distribution; Poolin Wallet: T+1 with automatic settlement starting at 1:00 am daily).
Hashrate Certificate Expenses Breakdown
As the first Ethereum based decentralized and standardized hashrate protocol, Mars project is committed to provide the community with PoW hashrate certificates that have lower entry and in-depth liquidity. The current products pBTC35A and pETH18C are for BTC mining and ETH mining respectively, and the mining output is calculated theoretically based on the network difficulty, crypto prices, and block rewards only. Net earnings of unit pBTC35A/pETH18C are the mining outputs that have been deducted the electricity expense, mining pool fee and nothing else. To accommodate current electricity costs, we altered Mars electricity prices accordingly (pBTC35A: $ 0.08/kWh; pETH18C: $ 0.15/kWh); The mining pool fee is pBTC35A: 2.5% FPPS, pETH18C: 1% PPS+, stays same.
Next Step
The present Bitcoin network difficulty and 14-day average hashrate is 15.56 T, 111.29 EH/s, which is far below the stats (19.93 T, 142.68 EH/s) back in June 14, indicating that most offline hashrate has not recovered yet. Mars project (restored and migrated out of PRC) could empower its community to capture stable and higher net profits. The edge would be substantially appearing when “Online Rate” approaches 100%.
Mars Project Team
August 16, 2021
