The mine pool pass (mine pool currency) is heating up in the industry.
The so-called mine pool coins are issued by the mining pool and bring certain rights to the holders: fee reduction, airdrop tokens, etc.
This fire was originally ignited by the mine pool HPT of the fire coin pool. Since the beginning of this year, HPT has repeatedly launched HPT repurchase destruction mechanisms and community governance plans.
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Subsequently, KuCoin's new mining pool, Pool-X, launched its own mine pool POL; the BlockPool pool also launched the mine pool BPT and landed on the Bibox exchange.
An anonymous person told Odaily Planet Daily that the OK mine pool will issue its own mine pool, but the specific launch time is not fixed. Currently, the OK mine is ranked first in the EOS node.
From the performance of the secondary market, the mining pool coins that have been on the line have been profitable. HPT's highest increase of more than 650% during the year, still has a 150% return as of September 27, far exceeding the same period of bitcoin revenue (currently only 110%). BlockPool Mine Pool BPT has the highest increase of 520% during the year, up 370% before the press release.
"The mine pool currency (mine pool pass) may be the key to the new mine pool, and the future will be the standard for the mine pool." Analysts pointed out.
However, under the circumstance of masters, it is not an easy task for emerging mines to stand out from the crowd. What is the market prospect of the mine pool? Can the mine pool currency become a new round of wealth hotspots?
Mine pool coins will become standard
“The mine pool pass can be regarded as a link in the ecological operation of the mine pool community, which can better maintain the connection between the mine pool and the miners. However, the OKEx mine pool will be more on whether to issue the mine pool pass. Listen to the user's opinion." Alina, the head of the mine pool, did not recognize it, but did not deny the possibility of mining the pool.
“The mine pool is the road to break the small and medium-sized and new mining pools. On the one hand, the mine pool can be financed by issuing mining pool coins, and the funds can be withdrawn. It can also use the mining pool currency as a subsidy to quickly attract users.” Encrypted analyst Fang Fang said.
Does this mean that the mine pool will become the standard for the mine pool?
“In fact, it seems to me that even if this is just a new type of incentive, it is an inevitable trend in the future development of the mine pool,” said KuCoin co-founder TOP.
TOP explained that the mine pool currency can be understood as a new attempt in the industry. Even if the development of the mining pond is not related to the birth of the mining pool, there will be other forms of incentives.
"But if we want to explore the elimination of this new form, it is closely related to the ecological development of the entire mine platform, and it also depends on its true value and whether the technological development behind it can really land. After the wave recedes Only know who is swimming naked, time is the real proof of value."
"I think the mine pool will be the standard for the future mine pool, but it will definitely break through without issuing a pass, obviously it is not fixed," said Kong Deyun, chief industry researcher at OKEx.
Alina, the head of the OKEx mining pool, believes that if there is a mine currency that can become a hot currency and lasts for a while, the mine pool will become popular, and you may see more mine coins appear later.
"In this case, the pool currency should be the standard for the pool. But the homogenization competition will also cause a large number of mine pools to fall, only a small amount of currency can stick to the end."
“Everyone should be alert to the situation of issuing coins for the purpose of issuing coins, and understand what the true value of the mine platform and its pool currency is.” TOP said.
In the POS, the prospect of the mine pool is huge.
At present, the old POW (Proof of Work) mines, such as BTC.com, F2Pool, Antpool, etc., have more mining resources. Most of the mining pool coins are small and medium-sized mining pools or emerging PoS (Proof of Stake) mining pools.
Does this mean that the mine pool is more suitable for the POS market?
A number of respondents gave a positive answer.
“For POW miners, the attraction of the mine pool does not seem to be very attractive, and POS miners value this one more.” TOP said.
The POW miners themselves have certain specialities, and they are more large. The POW miners have an absolute say, and may cooperate with the existing mines. They also don't care if the mines are attached to the mine pool.
POW miner Wang Xiaoyi once told the Odaily Planet Daily that it was giving a HPT to the BTC in the coal mine pool, but HPT was not within his revenue range.
"How much (HPT airdrops), I don't care, don't worry about how much revenue there is. As for the (HPT) price, I am not very sensitive."
On the contrary, the essence of the POS mine pool is Staking. Each holder of the money is a potential miner. The majority of small and medium-sized holders of the small and medium-sized holders participate in the lower threshold and are more oriented towards the C-end. They are naturally more interested in the mine pool.
"For retail investors, the mine pool currency will be the same as the platform currency, which is an important indicator to determine the user's stickiness." Kong Deyun said.
“Before, the mine pool served the miners. Now the mine pool is in the 2.0 stage. The mine pool serves the exchange users. This is a process from large to retail.”
“I am more optimistic about the development prospects of the mine pool,” Alina gave advice from the fundamentals.
"As a fundamental digital currency, the income of the mine pool and the price of the currency can basically be positively correlated, with the bear market resisting the decline and the bull market more eye-catching characteristics."
Many analysts believe that with the rise of the Staking economy, the future prospects of the mine pool are still very bright.
The Odaily Planet Daily selected the top 100 currency POS tokens from CoinMarkerCap, including EOS and ATOM, with a total market capitalization of $11.526 billion.
At present, the average annual inflation rate (increasity rate) of all POS tokens is 7%, and the market value of SGD generated by POS per year is 15.26 * 7% = $ 806 million.
The POS pool service provider's handling fee is generally around 10%, and the average profit margin is 4%. It can be calculated that the total profit of the POS mine pool is up to 8.06 *10%*4%=$032.2 million.
According to the formula of "market value = price-earnings ratio * profit", in which the price-earnings ratio is 10 to 20, it can be calculated that the market value of the POS mine pool should be between $30 million and $0.6 billion.
By the same token, we have also calculated the market value of the most representative BTC pool in POW, which is about $65 million to $131 million.
“In theory, the POS mine pool and the POW mine pool are in the same order of magnitude, and the market prospect is broad,” Fang Fang explained.
“In the future, after the launch of POS coins such as Ethereum, Boca, and OASIS, the market for POS mine pools will be further expanded.”
In addition, Fang Fang also believes that the mine pool will also feed back the POS market.
“With the mine pool currency, staking users have additional benefits; users are more willing to buy POS coins for staking, so that more people enter the POS eco-participation vote, making the coins in the entire ecology more stable and safe. Conducive to the application of the project."
Mine pool currency exchange exchange business
In the past year, the exchange's entry into the mine pool has not been a new thing: the Firecoin Mine Pool, the Matcha POS Mine Pool, the KuCoin Pool-X Mine Pool, and the Bibox's BlockPool Mine Pool.
One of the important reasons for the exchange to enter the market is to use the mine pool to create platform coins or other businesses.
Taking HPT as an example, in its white paper, it is stipulated that 20% of HPT will be airdropped to HT holders – now it becomes a locked-box HT airdrop HPT.
But in any case, HPT is still subordinate to HT. After all, for the exchange, the platform currency is the core.
Kucoin's Pool-X mine pool POL, although it did not qualify the platform coin KCS when it first came out. However, in the recent Kucoin 2nd Anniversary event, it was announced that the lock-in KCS airdrop POL. “We are also considering some feasible ways to empower KCS, such as distributing a portion of the profit from the mine platform to KCS holders.”
Moreover, the Pool-X mine pool also empowers other exchange businesses. TOP said that although Pool-X operates independently, it has a very deep cooperation and interoperability with KuCoin: users must use KuCoin account to log in to the mine platform; if Pool-X users want to trade or withdraw assets, they need to transfer first. Go to the KuCoin savings account.
However, some investors have bought the platform for the pool currency. In their view, the mining pool currency and the platform currency should be developed independently and on an equal footing.
Some investors have told the Odaily Planet Daily that it is unfair to drop 20% of HPT to HT users. "Now HPT is mainly empowering HT, but we have not seen HT empowering HPT. I think the Firecoin Group has not enough support for the Firecoin Mine. Now HPT is empowering HT, which is actually hurting HPT shareholders. interest."
From the actual operation of the mining pool, its growth rate is not worse than that of the exchange. Take the fire coin pool as an example. The average profit growth rate of the past year is close to 100%, far exceeding the profit growth of the exchange during the same period.
However, the exchange-backed mines want to break open the exchange, which is not a good thing. After all, the opportunities for cooperation that the exchange can reach are inevitably richer and more diverse. Based on the trust endorsement of the exchange, the mines developed by the exchange will naturally gain more trust and resources from the partners in seeking project cooperation.
Moreover, the exchange's technology generally develops relatively mature, with high security and controllability and technical integrity; the exchange can also provide the corresponding human and financial resources to serve the new mining pool.
"For the exchange, the huge funds and users will play an important role in the mine pool 2.0," Kong Deyun explained.
There are many problems with the mine pool
For mining pools, issuing mine pools is by no means a simple matter. In the process, many mines are buried.
1. It is difficult and costly
On-line exchanges are more burdensome for new mines, so the issuance of the pass has an inherent advantage for the exchange's mining pool.
"Firecoin itself is an exchange, creating a currency to circulate on the exchange, the cost is relatively low." Standard consensus analyst Li Zipeng explained.
Like coin printing, since it is not an exchange itself, its mine currency PIN is currently only traded on small exchanges (KKEX, CM).
2. The price is unstable and the market value management is difficult.
An important reason why the mine pool can play in the Staking economy is to solve the long-standing pain point: although Staking users get tokens, they are still losing money compared to the French currency.
Taking HPT as an example, after pledge of ATOM, users use HPT to settle pledge income, which requires: when the market declines, HPT's decline is smaller than ATOM and other tokens; when the market rises, HPT's increase is even higher. ATOM and other tokens are big.
The resources and money that the market value management will consume will be a large amount, and the non-exchange-supported mining pools will lack stamina.
For example, after the PIN is online, the PIN/BTC has been in a down state, and the return on the French currency is basically in a downward trend.
3. Limited application scenarios
For the mining pool, simply issuing a coin may not be the key to winning, and ultimately rely on the application scenario to win.
At present, the application scenario of the mine pool currency is really limited. Taking HPT as an example, HPT holders have two main interests: election super representative and proposal voting; enjoy the airdrops of the relevant coins of the fire coin pool. HPT is nominally the platform currency of the Firecoal Mines Eco-Exchange, but does not receive any discounts on HPT.
PIN has more application scenarios: participation decision, election supervision, currency privilege, incentive reward, coin printing mall.
Landing scenes are not easy, and the mine pool needs to think twice. As TOP said, “What is the business, positioning and vision of a mine pool? What are the application scenarios of the mine pool in this mine platform? These problems are all needed to understand the mine platform.”
Text | Qin Xiaofeng
Produced | Odaily Planet Daily (ID: o-daily)
Original article; unauthorized reprinting is strictly prohibited, and violation of the law will be investigated.