[09/28: Releasing MagiPublication, new block rewards explained, statement of future plans]1. MagiPublicationI've managed our first publication in the academic level, currently submitted to arXiv.org e-prints:
A network-dependent rewarding system: proof-of-miningRaising up this effort has dual purposes. We've experimented a few new features in Magi in my expectation at this coin going towards a direction never achieved or attempted before. We are kinda researching something and such efforts should be recorded and published if possible. XMG does benefit a lot from either suspect & complaining voices or from positive comments in the thread. With many back and forth discussions, we seem like going toward a solid direction now. If XMG cannot achieve whatever it's supposed to be, subsequent coins might go stepping ahead of us by benefiting from the publications.
I, myself, was working in the research field (credit: RG score more than 29 based on ResearchGate). I like to think and ask. I have been kinda addicted to the cryptocurrency since last Dec, and have thought about a lot over the time. I don't want point out for whatever reason I am doing this, this coin is just on the track, and I am not just joking in making a random coin, but rather seriously take it in the long run. I won't object to the argument of pump and dump (just meaningless wording arguing). If I did wrong the coin, correct me; I am very like to hear different voices. Back to the topic, publishing papers on XMG will obviously place XMG into a more broader audience, just imaging how many people will read the publication.
2. New block rewards explainedWe were missing a full description of the new rewarding system, reading:
A network-dependent rewarding system: proof-of-mining.
(a) - our initial design;
(b) - the actual implementation in the M7M algo. Ads. (anyone can get a better ads or image based on this idea, shoot me a PM)
1000 people mining BTC/LTC with their CPU (assume 50Kh/s) only get negligible rewards; however, mining XMG yields 144 coin/day/person.Current mining situationMiners should be aware of the current low block rewards (5 XMG/block typically) is because of the overtuning of the rewarding system; that is, we are at III of figure (b), rather than I. This is important; big miners might need to lower their hashrate a little bit, so that the reward will be back to maximum (at I). Deep explanationWe have explained the rising part in the initial design: the system allocates more rewards to the network having more miners. However, simply increasing reward will drive miners towards building more powerful equipment. The relationship between mining costs and returns in consistence with economics should be the guideline to achieve the goal. We assume this is valid. For example, one who has powerful equipment and hence high cost as well will expect commensurate returns; otherwise, the cost must be reduced by reducing the usage of equipment.
The efficiency of discouraging mining activities is fully determined how fast the rewards decline with difficulty (at the high difficulty range). It should be noted that self-adjustment of network difficulty in accordance with rewards is affected by both the reward declining rate and the market place of the cryptocurrency. One can build up more powerful equipment to compensate the declining rewards. A much faster declining rate will disable any possibility of acquiring desired rewards by simply building more hashing power. Fig. (b) shows an improved rewarding system as implemented in XMG, by incorporating a cut-off function. The maximum block reward is available at Diff = 1.75 (I) (or ∼ 40 MHash/s). The reward is halved when Diff = 2.20 (or ∼ 51 MHash/s) (II), and equals to 1/10 of the maximum value at Diff = 2.37 (or ∼ 55 MHash/s), at which the low rewards will be lack of incentive to the miners.
Does the new rewarding system work?The short answer is yes. Let's take a look at the pool status before and after the hard fork (new reward):
BEFORE (nonce-pool and suprnova, respectively)
AFTER
Summary| ==================== | ==================== | ==================== |
| Network hash ratio | big miner weight (>5 MH/s) |
| Before (at block=2660) | 115 MH/s | 47.5 % |
| After (at block=5682) | 83 MH/s | 38.4 % |
| ==================== | ==================== | ==================== |
The big miners did have been depressed to a certain level; we will carry out proof-of-mining campaign to help this further.
Proof-of-miningOne may expect the market place will affect the miners’ behavior significantly. For example, the high-pricing reward leads more miners into the network which immediately move the block reward out of the maximum region. This initiates a self-adjustment of the rewarding system. Realizing the marginal rewards (e.g., at III of Fig. (b)), some of the miners start ceasing their minings, thus pushing the reward back to the maximum. In this case, it will be relatively less advantageous for miners quickly in and out the mining activity. One will need to show a proof of mining in order to gain sufficient credits to declare the rewards. The new system emphasizes the participation of miners instead of their hashing power.
Another look - difficulty vs time
It's clear that diff is nearly constant between 09/18 and 09/21, while it declines after 09/21 when hard fork happened.
Currently over 530 active miners. 3. Statement of future plansWe've been on the CPU mining quite a while, while we don't have clear roadmap sorted out yet. I understand people are keen to the anonymous features, market place, or advanced wallet development. I am not sure how important they are, but people should be seeing constant price pumping by updates in these aspects. While I am lack of expertise in these areas, I will be looking at them as possible future development; anyone who can help Mag please contact me. An important area for sure is that we will try to get merchants' adoption as many as possible. We believe this will be the real solid support of the coin. Stay tuned!
Very interesting dev.
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