Logo

    CryptoNet is a Protocol Labs initiative.

    🎭

    Mining Splits/DAOs

    Creator
    Nicola
    Created
    Feb 9, 2022 12:34 PM
    Project
    Financial applications
    Stage
    Still Valid

    Parties

    • The miner runs mining operations (c.f. management)
    • The token holders are capital/liquidity providers for the mining activity (shareholders, LPs)

    Overview

    • Miner creates sells ownership of their miner by selling tokens representing their future rewards
    • Every time the miner earns, these tokens are redistributed

    Mining Pledge Contract

    • There is a “Mining Pledge contract” that has an ERC20 token. The miner can decides to distribute these tokens to others.
    • The “Mining Pledge” contract has a balance that can be only withdrawn to add pledge collateral to a miner.

    Split Contract

    • There is a “Split contract”, where every time money are sent to it, these are automatically distributed with the right distribution to the Mining Pledge token holders.
    • The miner assigns the beneficiary contract of their miner to be the split contract.

    Ecosystem

    • Every miner can be releasing their own “Mining DAOs”
    • Investor can have a diversified portfolio of miners
    • There could be some other “Management DAOs” like Yearn, where strategist pick the best miners and re-invest profits in new miners.
    ‣
    Old raw notes:

    Static setting:

    • There is a contract that gets created
    • Multiple LPs put utility tokens into the contract
    • The contract has some predefined split agreements (this means that tokens can only be withdraw up to a percentage)
    • Miner uses the tokens in this contract to s
    • a “split contract” where assets in this pool can be only claimed if according to a distribution previously agreed upon (dividends)
    • use this contract as the reward address of a miner
    • use this smart contract as the contract that deposits “pledge”

    if we had this split smart contract and the support for reward address of a miner to be it

    then I could agree to co-own a miner ahead of time

    and this could give me ability to earn future rewards

    Box 1: Buffer money, Box 2: Pledged Money, Split Contract (reads Box 2)