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Mining DAOs

Last edited
Feb 10, 2022 4:11 AM
Project
Financial applications

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  • The “Mining Pledge” contract has a balance that can be only withdrawn to add pledge collateral to a miner.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)