What is Pyramining?

It is a shared mining farm that allows you to borrow hashing power to mine for Bitcoins. Once your account is active, miners will keep working for you until you will be fully rewarded with the intial amount sent plus a bonus. There is a referral system implemented in order to increase your bonus.


Is it a pyramid scheme?

It is not. All rewards come from mining and not from recruiting members. All deposited amounts will be used to buy mining infrastructure.
Recruiting member allows you to increase your bonus/reward.


Since people do not read instructions on the site before creating an account and making a deposit, new account creation has been suspended until a solution will be found.


Here is a link to the initial discussion topic.

Here you can find the Frequently Asked Questions.

Just added the second GH/s to the mining gear!

I am thinking about creating the official discussion topic under a more appropriate section. Which one do you think it fits better?

Bitcoin Forum > Economy > Marketplace > Services

or

Bitcoin Forum > Economy > Marketplace > Gambling

?


I suppose that the first (Services) is the correct one, since this is not "gambling", deposits aren't bets.

Level 2 and 3 referrals are implemented. Bonus is affected only by 1 level. Deeper levels are involved during the rewards distribution:
30% of the rewards get split into 15%, 7.5% and 7.5% and sent to the first three level sponsors, on the other hand you will receive 15% from 1st level referrals, and 7.5% from second and third level referrals.

Thank you Matthew. I know that it could look like a scam, even because I am not much known yet, but you will see with time that this is a serious project.

I am not that much anonymous, just try to do a whois query on the domain... ;-)

Oh I thought that he recognized "bitscalper" in someone who posted here. I am not bitscalper and I am going to search on the forum just to see what he was afriad of. :-)

BTC are used exactly to purchase more hashing power.

If you join without a sponsor, and you don't invite other member through referral you will earn 5% (like a bond).
If you help us spreading our initiative through referral, you have the chance to earn much more.
Finally, yes, this should be more fun.

I don't understand this fully: does this Matthew sustain that I am someone else?

This is my first bitcoin project and this is my first and only account I have on this forum.

The amount of mhash lended per btc will increase as more people will join. I will add (proportionally) ~ 1 GH/s every  ~ 140 bitcoins deposited (depending on bitcoin value at the time deposits are received). In the FAQ section the cost per GH/s is always updated.

Probably I need to publish more stats on the site, I will work on it in the next few days.

If you add funds, the bonus % will decrease, because it's calculated on how much referrals deposited compared to your deposit.

The exact formula is: ((sum of referral deposits / your deposit) / 10) + 5 + 5 if joined through referral.


I am new here and the world is full of scammers, so I might understand that some people could be skeptical.


Yes, but mining gear will remain allocated to pyramining to allow faster rewards, until every account is payed back completely.

Probably I will close _new_ subscriptions when conditions make the system unsustainable (for example if block rewards drops too much, but it will happens 4 to 5 years from now).

It's not a math problem, this account sent a little amount (like 0.xxx) and his referral something bigger (like 5.xxx). Therefore he will really gain up to 566%....

I say "up to" because when an account is created, it gets 5% or 10%. If miners find a block, he start getting revenues. If he gets referrals AFTER, he will gain the bigger amount only for the remaining part (funds that aren't payed out yet). If referrals deposit funds in a short time, real gain corresponds to bonus. If referrals deposit when the account payout is almost completed, the real gain is the average between all the received rewards. In the profile section you can find "average bonus", calculated on current situation.

BTW: caching issues should be fixed now. Still testing a bit more.

I am working on it, need some time for testing with Firefox.

It was a caching issue... it should work properly now. Thanks for reporting.

but:

[/quote]

Profile information is not realtime, it gets refreshed every 5 minutes, to avoid DOS (if someone sends 1000 requests/sec of the profile, the system will have to do a lot of calculations and the site would collapse). Just have a little patience. :-)

Maybe I can reset timers when a transaction is done. Working on it.

As soon as it will have 1 confirmation, your account becomes active. Hope you will be satisfied by the service.


Yes you will keep the income if there are no sponsors above.

I just donated ~ 1 GH/s to the site's mining gear for the bootstrap.

First users will have very fast revenues. All deposited funds will be used to add more hashing power. To speed up things, I can dedicate my other mining gear (up to 25Gh/s actually) to pyramining while waiting for new hardware to be ordered and put to work.

I dedicated my time to the logic, I can improove graphics with time, the most important thing is that the site works correctly.
Probably if I wanted to take bitcoins and run away I would have cared only at the looks.
Bonus is 5%, 10% if joining through referral and it will increase proportionally depending on how much your referrals will deposit. Maybe I should explain this better in the FAQ.

The site is still BETA because it has still little testing. Anyway I am making hourly database dumps and backups so if something goes wrong I might fix it.

And "use at your own risk" because it's my first application that involves bitcoin. Although I am quite experienced with coding, and the whole system sits behind a restrictive firewall, I never ran this kind of application before. Even MTGOX has been hacked someway. If you don't trust it enough but you want to see how it works, you can partecipate with a little amount and see it by yourself. When you are confident that things run as expected, you can always deposit a bigger amount.

Thanks Uncurlhalo! I am open to any kind of critics, and I subscribed to this forum to make myself available to anyone who could have quesitions not yet answered in the FAQ. When my account on the forum will allow me to post on other areas, I will open an official thread and link it from the website.

Why do you think it's a scam? It is not... and I am not developing it for that. 

I already have a mining farm, I am trying to do something easy, funny and interesting for the bitcoin community. I am afraid that the word "pyramid" scares many people. What do you think about it?

The site is at: http://www.pyramining.com/

If someone wants to try it out and join, here's my referral :-)

http://www.pyramining.com/referral/k3fr9g647 <- this referral has already been used, ask to other members for new referrals.

Joining by referral increases revenue % of 5 points.

-edit-


While it has a pyramid structure, this service is not a pyramid. Every account will get his calculated reward since all profits are derived only from mining.