To all Gigaminers:

I think the final terms will be:

• 22.5% Mh/s per bond (this is 90% of 25Mh/s)
• The cost per bond upgrade will be set at .29 BTC per Gigamining bond

If anyone does not like this deal, you can always take the free upgrade and go buy your own BFL equipment.

The new contract for Teramining is going to be a bit more robust than the current Gigamining contract and will also include:

• A minimum buy back amount. The contract will set a minimum that I can buy back the Teramining bonds for in BTC. I have yet to figure out what this amount should be but with 160k bonds issued, it will be low.

If you have any feedback on these, please post your comments.

Best,
gigavps

EDIT: Removed another stipulation quoted below because it doesn't jive with the perpetual nature of the bond.

Hi Namworld,

While you feel that a 32% profit is good for the upgrade, let me try to explain why it needs to be higher.

The first and foremost reason is: I assume ALL RISKS except for difficultly changes.

This means I assume risks for things like:

• Mining software crashes
• Pool failures
• Mining Variance (bad luck)
• Facility failures
• Equipment failures
• Power outages
• Network outages
• the list goes on....

Basically anyone holding a Gigamining bond is mining without needing to do, well, anything. They will never need to leave their house at 3am to figure out why the network connection at the data center is down only to be locked out of their house because their wife had their house key (this is a true story and happened last night).

If a mini rig is out of its warranty and something happens to it that renders it useless, I'm on the hook for that, not you.

Also, your calculation of 10k BTC taken in for the upgrade is unrealistic given that there is a FREE upgrade path. I have been able to collect some stats on this and the response so far is around 70% of the bonds reported in will upgrade.

As for the fee, in the beginning when ASIC arrives, the fee will probably pay out more but I am also expecting that the network will quickly move past 200Th 6-8 months after ASIC is initially released. Since the costs to run the equipment will be fixed, any supposed profits from the fee in the beginning must be saved for when the network surpasses 200Th and the fee will no longer cover the costs.

In closing, a 50% fee is more likely "barely enough" to run the bond through the entire 4 years of 25 BTC blocks. Again, I would not have proposed these changes if I thought Teramining would stand the test of time without them. I have done a lot of thinking about this and proposing this change was not something I was looking forward to. The backlash has been swift and intense. My choice is to either makes these changes now or potentially watch Teramining default on it's obligations. I have committed to making Teramining a reality and I plan to stick by my word.

Lastly, I do feel these changes will give Teramining was it needs to be a successful venture for both the holders of the bond and myself.

Best regards,
gigavps

Hi coinlab,

Could you please make a change to your current interface to show the average hash rate over the last 15 minutes instead of the last -.02 seconds? The current interface gives me no idea what the pool thinks my hash rate is.

Thanks,
gigavps

Thanks for clarifying consirosphere.tk.


I will make another post in the Gigamining thread with the appropriate risks and costs over the next 48 months.


I am sorry to hear that. Both the free market setting the price of the bond and the difficulty changes are completely out of my control and am sure you realize this.

To all Gigaminers:

Is this how everyone feels?

Best,
gigavps

Hi conspirosphere.tk,

I take this kind of accusation seriously. I have been running Gigamining for almost half a year and have met the contract 100% and have never deviated from it.

I have taken on more risks that anyone can imagine and things have not always gone my way, yet, you do not see me complaining. I believe those risks must be covered yet your accusation suggests that I have almost no risk and that my profit margins are too much.

On top of that, you are quoting someone else's analysis instead of doing your own or even asking any questions.

I would not have suggested these changes unless I felt it absolutely necessary.

Best,
gigavps

Hi Namworld,

Here are most of the costs incurred every month to run my setup. This is by no means exhaustive and others costs almost always arrive.

Warehouse Rent / Colocation	$1230
Utilities	$1300
Internet	$125
Security	$40
Insurance	$200
Accountant / Accounting Software	$130
Replacement Costs	$300
Total	$3325

At the network being 200Th the 10% fee would be .2% of the network. At 25 BTC blocks this would generate 7.2 BTC per day and at $10 per BTC that would be $72 per day. Over the course of the month that would be $2,160/mo which is around what I would expect my costs to be around once GPU equipment is used for other things and they are no longer in the equation. These calculations are probably overly optimistic as the costs currently do not figure in any donations to pools.

I can understand the frustration around Teramining's terms being changed , but I think this is a better than Teramining defaulting on it's obligations at some point in the future.

Best,
gigavps

* gigavps whips out his calculator

This is correct. You would pay 3 BTC and end up with 900Mh/s when upgrading 10 Gigamining bonds to 40 Teramining bonds.

Hi dishwara,

Sorry for the confusion. There is still a free upgrade path. If you have 10 5Mh/s bonds now and choose the free path, you will have 10 22.5Mh/s bonds when Teramining comes out.

Hopes this helps.

gigavps

To all Gigaminers:

From the current feedback received,  I would like to propose the following changes to the upcoming Teramining contract.

• Each bond will be at 22.5Mh/s which is 90% PPS of 25Mh/s.
• Upgrade price will change to .3 BTC from .25 BTC.

Please continue the discussion. I am in no way perfect and rely on your feedback to make sure Gigamining/Teramining continues into the future.

Best,
gigavps

That was a rather amusing exchange... 

Sure thing. Just send me a PM and we can work out the details.

Best,
gigavps

Hi Factory,

3% will go right off the top to multiple pools to help with development, support and their hosting costs. With 4Th controlled by one individual, I do not want to be seen in any way as a threat to the network, hence the need to be able to run on multiple pools and to be able to support them over the long term.

The other 7% will hopefully cover the rack space, internet usage and power needs of the equipment. Since the new BFL SC Mini Rigs have the option to be rack mountable, I feel this is the best way to go. I am currently looking into data center costs for hosting the equipment. These machines will still have large power requirements so it will require some more time to find a suitable data center.

Also, part of the continued fee will go towards the time I spend managing the equipment. While it is true that the mini rigs are less prone to dying than GPU rigs, there are still issues with random computer and mining software crashes which still need to be monitored.

Best,
gigavps

Hi sp0rus,

Thanks for your input.

Best,
gigavps

So if we got rid of the tiered pricing and moved to price to .30 BTC, would this be an acceptable change along with the 90% PPS?

Hi DeaDTerra,

Thanks for your feedback. I will take it into consideration.

Best,
gigavps

This is correct. It costs real $$$ to run this equipment both on the hosting side of things and on the pool side of things. I would like to setup Teramining to last a long time. If I do not take a cut from the PPS, it would take a very high $$$ value up front to continue operations indefinitely.


I'm an running this bond to make money. I'm not sure where you got the idea that this was a charitable venture. Every bond sale thus far has netted 100% initial capital outlays. I would expect nothing less from the release of the Teramining bond otherwise there is no reason to do it.


It may be. I might lower it. That's what we are discussing. Some have suggested that having a tiered pricing structure is not the best approach. I have been thinking about it and could be persuaded to agree. Maybe we'll change it to .30 BTC for everyone but I would like to hear others opinions first.

36 BTC

Well, they were supposed to use a sata cable PCB connector instead of USB hubs to connect the boards together. The LCD on the front of the rig also doesn't work.