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NEO Tiers Explained
While NEO is awe-inspiring hardware, we are truly thrilled to reveal the NEO mining algorithm to our community.
The launch of NEO is a remarkable achievement from the MXC Foundation and MatchX, a direct result of more than a year of dogged determination and obsessive innovation for lowering the barrier of multi-token mining for tens of thousands of people around the world. While NEO is awe-inspiring hardware, we are truly thrilled to reveal the NEO mining algorithm to our community today. The NEO mining algorithm completely replaces Meta-XP, and its granularity allows miners to fine-tune their own mining journey in a fair, transparent manner.
Before Getting Started
Total Utility Pool (TP)
Before Getting Started
It is imperative that our community is well informed not only about how the NEO mining algorithm works but also about the intention behind it. The entire algorithm can be summarized using these two words: Optimization and Competition. Rather than considering the entire miner population as a single demographic, we at MXC have decided to allow individual miners to choose how they wish to participate. The result is highly-customizable optimization, combined with selective competition based on the miner’s choice.
The individual, customizable optimization is reflected in the Miner Health and Mining Power.
The selectable competition intensity is reflected in Tiers.
Please note that while some terminology is repeated from the M2 Pro mining protocol (Meta-XP), it does not indicate that the concepts work in an identical manner.
Total Utility Pool (TP)
The Total Utility Pool (TP) is a secure vault of MXC tokens that are delegated for mining rewards. It has been created to invite greater transparency into the source of the MXC tokens mined, directly combatting the unchecked speculations surrounding the matter. The TP is composed of contributions from MXC, its direct partners, and data network partners. The relevant revenue streams are aimed to be converted into MXC tokens, and continuously top up the TP balance. Not only will this approach bring clarity to the involved miners, but it will also show the MXC Foundation’s commitment to continuing to provide value to the miners.
By design, it is not possible for the MXC Foundation to withdraw tokens from the TP. Tokens can only be added, and mined by involved NEO miners only.
NEO Health Requirement: 0%
Token Bond Requirement: 0 MXC
Bond Refund: 100%
Bronze is the lowest tier within the NEO mining algorithm. With no health requirement and no token bond requirement, it is the perfect choice for those miners who wish to mine at a default rate without additional commitment - in both NEO miner health and in MXC token bond. There is absolutely no penalty for staying in the Bronze tier. It is completely up to the personal choice of the individual miner.
Since the low health requirement would indicate that the miners in the Bronze tier are not fully reliable in terms of connectivity and certification provisions, the assigned coefficient is on the lower end at 0.16 which ultimately indicates that the Bronze miners are assigned a smaller portion of the TP.
NEO Health Requirement: 75%
Token Bond Requirement: 3000 MXC + 1000 MXC reoccurring
Bond Refund: 100%
Silver is the middle tier within the NEO mining algorithm, suitable for those who are looking to make a moderate commitment in exchange for significantly increased access. The increased health requirement of 75% and above ensure that the Silver tier is reserved for those who are dedicated to keeping their NEO in optimal condition, providing reliable connectivity and data certification to devices nearby.
Additionally, the obligatory token bond is put in place to guarantee that the Silver tier attracts miners who truly believe in the global vision of a connected data network, and are willing to show their belief via an additional method of participation. The initial bond of 3000 MXC ensures that the miner stays in the Silver tier for 12960 blocks. Upon the complete mining of the 12960th block, the Silver tier miner has the opportunity to bond 1000 MXC additionally to continue within the Silver tier for 4320 additional blocks. The additional bond is reoccurring and will renew every 4320 blocks. Naturally, 100% of the bonded tokens are returned to the miners when they have completed the designated cycle. The bonded tokens will securely drip back into the miner’s wallet, linearly over 17280 blocks with emissions per block.
Due to the higher commitment required for the Silver tier, all miners in the Silver tier benefit from an increased coefficient of 0.3 giving them significantly higher access to TP.
NEO Health Requirement: 95%
Token Bond Requirement: 5000 MXC + 1500 MXC reoccurring
Bond Refund: 100%
Gold is the highest tier within the NEO mining algorithm, and it is specifically for those who are willing to make a significant commitment to truly maximize the potential of their NEO. The highest health requirement of 95% may seem demanding, yet it is the minimum level of connectivity reliability and certification level that can communicate to the sensors that the connection is truly accountable on a consistent basis. Moreover, the initial bond of 5000 MXC requires the miners to show their dedication to maintaining the global data network. Similar to the silver tier, the 5000 MXC initial bond grants miners access to the gold tier for 12960 blocks. Upon the complete mining of the 12960th block, the Gold tier miner has the opportunity to bond 1500 MXC additionally to continue having access for 4320 blocks, on a continued reoccurring basis. 100% of the bonded tokens are returned to the miner upon completion of the designated mining tier cycle. The bonded tokens will securely drip back into the miner’s wallet, linearly over 17280 blocks with emissions per block.
Due to the higher commitment required for the Gold tier, all miners in the Gold tier benefit from an increased coefficient of 0.54 giving them the highest access to TP.
The OG Tier is an exclusive level reserved for those who have proven their consistency in providing reliable data connection and wide certification levels. For the first time in our history, we are opening up the OG Tier to the most dedicated, proven miners. Miners in the OG tier will benefit from receiving majority shares from all the fees originating within the DataDash app, along with other exclusive bonuses that we have previously never offered to anyone else.
The requirement category for the OG tier is not for public release at the moment. After careful consideration and consultation with key miners within the community, we will gradually release the requirement category for the OG tier, eventually inviting the larger public and the wider Web3 community to the perpetual growth of MXC’s global vision for a connected world.
Just like the way the miners’ experience differs according to which tier they select for themselves, there is additional fine-tuning available for individual miners within their respective tiers. That is the beauty of inter-tier competition, which opens up an avenue for many personalized, unique approaches to multi-token mining.
Even within a designated tier, miners compete against each other within the same tier. There are two components that are at miners’ disposal to increase their competitiveness: Miner Health and Mining Power.
NEO Miner Health is perhaps a familiar topic to those who have been mining with the M2 Pro. Keep your NEO miner plugged in, reliably connected to the internet, signal easily receivable from external sources, and your fuel tank in optimum condition.
Mining Power is an additional factor that allows anyone - despite their Miner Health - to flexibly increase their NEO competitiveness. By staking MXC tokens directly to their NEO, miners can immediately increase their Mining Power and boost their overall advantage. With a cap of 25,000 MXC which would grant a 2X Mining Power boost at maximum, it also ensures that the approach is whale-proof and truly fair for all.
Closing Notes and Increased Availability of Knowledge
The NEO mining algorithm is an additional step from the MXC Foundation to make sure that the knowledge is readily available to the miners and the wider community. Soon, the wider public Web3 community may expect to see the entire algorithm on our updated documentation, involving specific numbers and formulae. Moreover, the team at MXC plans to host a web seminar for NEO miners to answer questions and share various tips.
We thank you for joining us on this journey and encourage others to join as well.