Upon the successful passing of the latest DAO proposal that requested a new, improved mining for the miners, the team at MXC Foundation has been working tirelessly to introduce what we believe to be a concrete mining model that targets the mining rigs in the way that the DAO proposal has requested.
We have also paid particular attention to the voice of those who have shown objection to the proposal, to ensure that the new mining model is sustainable and beneficial for all, including the future growth of the MXC network. We believe the new, improved Mining v2 model will bring a much-anticipated boost to the number of active miners in the network through a sustained reward mechanism while creating natural demand to reach an equal balance that can propel the global outreach of the MXC network.
xMXC, the zkEVM version of MXC
The implementation of the proposal witnesses the introduction of xMXC, a derivative of MXC that is native to zkEVM. The purpose of xMXC is to serve as the “fuel token” of the miners, ensuring that the ability and freedom of all miners to either top up their fuel tank or exit completely, do not hinge on the price of native MXC and thus creating a safe yet moderate division between xMXC and MXC. xMXC is available for everyone through two methods: direct swap on MXC Swap and DataDash.
Users who already have MXC on zkEVM may swap their MXC for xMXC and vice versa. Other users who do not will have to purchase MXC from the secondary market in the form of ERC-20 MXC, bridge the MXC tokens to the zkEVM mainnet, and conduct the swap. Users who have their MXC on DataDash benefit from a seamless, direct swap that ensures greater security while eliminating gas fees and relevant transaction fees.
The xMXC/MXC trading pair on the MXC Swap aims to have ample, continuous liquidity provided by the MXC Foundation and key institutional partners to support large volumes of swap between xMXC and MXC with a stable swap rate in mind. MXC Foundation may also introduce additional incentives for community members to provide xMXC/MXC liquidity.
xMXC and Fuel Tank
As mentioned above, the purpose of xMXC is to serve as the fuel token of the miners. Since xMXC separates itself as a derivative of MXC, the miners will break away from the model of a growing fuel tank. The current fuel tank of each miner will be converted into a static value in xMXC. Let’s break it down in an example.
Let’s assume that there is an M2 Pro miner currently active with a fuel tank size of 105,022 MXC. Previously, if this M2 Pro miner mines an additional 10 MXC, the fuel tank would increase in size to 105,032 MXC. With the v2 mining, the previous fuel tank would become static and converted into xMXC. As a result, an M2 Pro miner with a current fuel tank size of 105,022 MXC will see a fuel tank size of 105,022 xMXC.
In such a scenario, the miner would need to have a total of 84,018 xMXC to fill up the fuel tank to 80%, or 105,022 xMXC to fill it up to 100%.
SENSOR, the Mining Token
Miners who have successfully onboarded their mining rigs to the zkEVM mainnet and filled up their fuel tank with xMXC are eligible for mining SENSOR tokens ($SENSOR).
As a native token on the MXC zkEVM mainnet, SENSOR follows a strict mining algorithm that accompanies pre-set mining cycle and halving periods. With a total, fixed supply of 150,000,000 SENSOR tokens, the entire mining will occur over the duration of 20,000,000 blocks with block rewards halving every 1,000,000 blocks. Given the figures, miners can calculate transparently that the initial block reward will be 52.5 SENSOR per block during the first mining cycle, and the block reward during the last mining cycle will be 0.0001 SENSOR per block.
We at MXC Foundation believe that the proposed mining model of SENSOR tokens sufficiently rewards the miners with certain longevity, with added early-adopter incentives and foreseeable sustainability thanks to the frequent halving periods.
All miners will be free to offload their mined SENSOR tokens, as proposed by the proposal. However, the liquidity pool for SENSOR tokens will be made in SENSOR/xMXC pair in order to partially protect the native MXC token from sudden volatility caused by SENSOR tokens. The provided liquidity will meet the minimum proposed by the DAO proposal ($100,000) utilizing 30% of the entire SENSOR token supply as liquidity, with further liquidity injection planned to provide optimal trading conditions for the involved miners.
Mining SENSOR with Low xMXC
As xMXC is the fuel token, we have fully embraced the model of empowering individual miners to be in full control of their mining operations. This means that those who have achieved 100% fuel tank in xMXC will mine at full capacity (100%) within their relevant position within the mining model, and those who have achieved 80% fuel tank in xMXC will mine at 80% capacity.
For example, miners A and B who have nearly identical on-chain states in other areas, except fuel tank with miner A at 100% and miner B at 50% would see the difference in the resulting mined SENSOR token balance of 50%.
On-Chain Mining and Phases
As the new mining protocol is made on-chain, the biggest addressable challenge is the sustainability and the fairness of the entire mining experience for both our established miners and the new, incoming miners. This is the reason behind the creation of phases.
Composed of 320,000 blocks per phase, each phase determines the mining rate of the miner in the current phase. The mining rate in Phase 1 is 100% and is subject to halving per phase. The new, incoming miners start in Phase 1, while the more established miners begin in later phases. For example, a miner that has been mining for 330,000 blocks prior to the on-chain migration would start in Phase 2 rather than Phase 1.
While starting all miners - both established and new - in Phase 1 may perhaps be an easier solution, such an approach would put established miners with already significant amounts of mined tokens at an increasingly unfair advantage in comparison to the new miners who are just starting fresh. We believe that the creation of the phase system with a composition of 320,000 blocks per phase gives all miners ample time to learn and mine for decades to come, while maintaining a full overview of what they can expect, with confidence that these models are on-chain and therefore unchangeable.
SENSOR, the Key to ISO
The biggest concern of those who opposed the DAO proposal was the viability of SENSOR tokens and their perceived value in order to incentivize eligible miners to hold the SENSOR tokens. We believe that we have a strong value proposition for the SENSOR tokens.
With the planned launch of Initial Sensor Offering (ISO), SENSOR tokens are positioned as the key to unlocking ISO token mining. All miners who wish to participate in ISO mining must maintain sufficient fuel in the form of xMXC and boost their ISO mining using the SENSOR token as the booster token.
A boost cap that determines the upper cap on the quantity of SENSOR tokens accepted as boost has been intentionally lifted, allowing miners to infinitely boost their ISO mining. Since ISO mining relies on peer-to-peer mining competition, those miners who boost their mining with SENSOR tokens will perform significantly superior than those who have not boosted their mining.
Each ISO token will also benefit from a trading pair of ISO Token/SENSOR on the MXC Swap, providing further utility to SENSOR tokens and deeply rooting them in the ISO infrastructure.
As the DAO proposal has resulted in one of the most vibrant, structured debates among our community members, we at MXC Foundation thank our community for their eager participation in making MXC truly DAO-governed and evolutionary. The release date of the Mining v2 will be announced soon, and be near the release of the AXS Wallet, to ensure that this moment can serve as a true turning point for the entire MXC ecosystem.
We thank you for your support, and we look forward to your continued participation.