Constructive discussion - bonus mining rewards

  • Dear all,

    I hope to open a constructive discussion regarding the mining pairs which have bonus mining features.

    I will present my view and purpose a suggestion how to make it more attractive - so we can all benefit more.

    So what is the issue:

    • The number of vx mined are pre-determined (bonus mining rewards does not create extra vx - rather it increases the share you get from the daily released vx. - so what does this mean?

    • Based on my observations over the last few weeks where the price of 1 vx roughly equals market price this means that the promotion will result in less volume (because you need less volume mining x2 / x3
      Pairs to reach the market price)

    • as a result this means that the less volume also generated less transaction costs and thus lower dividends.

    • that means that I (as a top 5 vx holder) am one of the parties that pays for this promotion without actually benefiting from it.

    • worst case scenario all btc transaction costs today would come from mining xmr: this would result:
      A) 1 / 3 of dividents are being generated
      B) mining xmr does not generate miners any additional profit (as the proportion of the mining rewards remain the same)
      (So who benefits?)

    • best case scenario (individual miner and large holder)
      I am the only one mining on x3 pairs (while everyone else is mining regular pairs.)

    • I mine until the vx price from mining is x3 market price.

    • thing is that the miners on regular pairs are far less efficiĆ«nt and pay for this transfer of wealth

    My suggestion:

    • mining vx results based on actual transaction costs (independed of promotion pair bonusses)
    • promotion rewards are in the CC of the bonus pair (so in this case monero)
    • who finances this:
      Operators are able to set their own fees the pairs they support. So what if they top their base fee with (lets say )0,1% dedicated to promotions.
    • why would an operator do this?
      : why not? Transaction cost finance this - and they generate more volume (and profits) during promotion.
    • since vx mining is not affected there are (in my opinion) no downsides.

    @VGATE @Vite @Shirley-wang (Bi23) @Lee
    I am very curious how you view this matter.

    Kind regards

  • Hey Michi,
    I read your article but not sure if you were talking abt trading mining or market-making mining. All bonus events on ViteX I've seen so far are MM mining events. Basically you are rewarded for placing buy and sell orders of the bonus pair without actually trading them, so operators aren't necessarily involved? And market make wouldn't really have an impact on the mining cost I assume, unless the orders are filled.
    But this logic seems to apply for both mining methods, maybe I just didnt think deep enough haha. Wonder what the officials have to say about this too.

  • @CryptoLily

    Thank you, haha you are spot on @CryptoLily thank you for pointing me on this ( I actually seem to be the only one that misunderstood this as I solo traded >25 btc on the xmr/btc pair yesterday haha)

    So therefore

    1. The matter I pointed out is no longer an Issue (my apologies for my misinterpretation)

    2. I would still be very interested how operators view the matter where they increase the trading fee with by small portion to a dedicated promotion fund that they can use to increase volume (without decreasing profits)

  • Haha, not a problem.
    25BTC oh wow.... Well, trading mining rewards is 60% whereas mm mining is only 10% if that makes you feel better lol.

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