What is PoM?PoM - Proof of Mining; in simple, the magi team rewards commensurate coins to every participant in this campaign, in accordance with your CPU hashrate invested into mining XMG.
PoM is also a built-in feature of XMG, thanks to the block reward design (see
this link for more information). A detail explanation is shown below:
What is POM ?
Good question; no one was questioning this before, though we're talking "CPU mining | PoS-II | PoM | Unique BLK reward | [MagiPay]". PoM has more meaning (since we're advising 1st PoM) than a single campaign as done before (which was an approach to protect coin distribution):
https://bitcointalk.org/index.php?topic=802681.0; some details here:
http://arxiv.org/pdf/1409.7948v1.pdfPoM - proof of mining; by it's definition, the more mining efforts being placed, the more rewards one gets. This is typically right in mining any coins, while it's particularly emphasized in Magi (on individuals' participation), because of the design of PoW block reward. A simple description of the block reward is that it decreases with increasing network hashrate, and may hit zero when network hash is significantly high. A consequence of this is big miners get frustrated. If one is familiar with the block reward (
https://bitcointalk.org/index.php?topic=735170.msg9991269#msg9991269), you will see block reward could be easily hitting zero. A point here, which was also being argued among people, is who will exit if mining nothing? This is where PoM campaign will be functioning. The campaign will encourage people to keep mining by rewarding despite the amount of block reward. To understand the purpose of the PoM campaign , we can see what happens if we're on the opposite situation - what if generic miners quit first?: 1) big miners keep mining, 2) because of miners quitting, network hash getting low, block reward increasing, and big miners get rewarded more! So now you see PoM campaign is trying to protect the network and to ensure FAIR coin distribution.
To the individuals, PoM means one will receive better rewarding by long term mining. Provided that we, the generic miners, form a solid league, won't give up mining in any situation. One will receive less mining share if big miners are present since they have more hash weight over the rest of miners. It should be noted, however, that coin distribution is pretty much protected by the significantly reduced block reward, as much less coins will be mined in this case. At the time of big miners' leaving, network hash decreasing, not only one gets higher mining share, but also the block reward is high. Then you know why Magi can achieve the FAIRness in coin distribution.
The XMG's block reward design has to bring the network hashrate into an equilibrium which would never go a very high or low number. Though the equilibrium state is strongly affected by the coin price, it is anticipated that the total hashrate could stay an appropriate level. This is a good feature to avoid huge waste of electricity consumed in the Bitcoin or other Altcoin's network. However, the weakness lies in the fact that one can gain reasonably high hashrate to dominate over the rest of the network. Although this is undesirable feature, we have taken a strategy, i.e., the PoM campaign, to avoid big-hash miners.
In general, people mine for profits, that means miners leave when they are unsatisfied with mining rewards.
The PoM campaign encourages the persistence of generic miners by giving away a certain amount of coins to each participant. So one will receive mining reward plus PoM campaign reward. Even mining gets zero reward, one will receive the benefit from this campaign.
To the XMG network, we will have a fixed number of people mining around to compete the big-hash miners. In normal situation, people would quit after mining something without a reasonable ROI. This is primarily the reason of this campaign, and it is anticipated that the generic miners will maximize their shares.
What does "2nd PoM" mean?The initial PoM (1st) is launched here:
https://bitcointalk.org/index.php?topic=802681.0.
DurationAbout two months.
Participation & Rules#
http://minerclaim.net/index.php?page=contactform&action= Fill in this contactform and give username you use in the pool.
# You must mine with your CPU and total hashrate not exceeding 250 kh/s.
Pool rulehttp://minerclaim.net/index.php is our second official pool (created and managed by Lahlor) designed for PoM; mining hashrate higher than 250 kh/s is not allowed. Warning will be giving to people who put miners exceeding 250 kh/s, followed by account locking and worker removal if hashrate is not depressing upon warning.
RewardWe have a certain amount of pre-set funds available at this time, and intend to get more funds. The funds will be distributed into all of the participants. The following will affect the amount of coins one will receive.
# The number of participants;
# The reward will be proportional to 1) hashrate (up to 250 kh/s) 2) mining duration
(we will make sure the method of how-to-calculate soon)
PoM Funds
Funds raised up by donations (to be listed); total funds: 23,088.0 XMG
All further donations will be added up to the funds:
99TPno3sPeUfDh9tq4To7xkLAYNQV1Qri1
No deadline for participation
Earlier participants receive higher reward
