[Proposal] Mining Co-Op

[armedmilitia]

Thread is out of date.

Most hosting companies give pretty big discounts for bulk buyers, and you can get small bulk discounts from most hardware manufacturers. Why don't we take advantage of that in a simple, transparent way?

Updated game plan as of 2015.09.25:

• Pool funds in a 4 of 6 multisig address with keys held by trusted members of the community.
• Negotiate a purchase of hardware.
• Buy the hardware and pay the hoster up front for a lengthy contract (6 months to a year).
• Have the hardware shipped directly from the manufacturer to our hoster.
• Mine at Kano's CKPool, enable reward splitting between addresses. Payouts go directly to participants--there's little risk here.
• At the end of the term we can sell the hardware or renew the contract.

If we follow this plan step-by-step we only have to trust three entities: The manufacturer, the hoster, and a 4/6 vote of the "committee". After the miners have been deployed, we only have to trust the hoster (and they tend to be the most trustworthy of the three).
Feel free to discuss this below!

UPDATE: I've talked to a hoster that's given me a fee schedule as long as I keep their name a secret until we start the buy. I've dealt with them before, and you will know who they are before this kicks off, if this ever gets off the ground.
50KW @ $58/KW ($0.08/KWh)
100KW @ $55/KW ($0.076/KWh)

I've also been told by a hoster that if we can get a huge amount of hashrate, our rates can get as low as $45/KW--but that's only going to be an option in a few months. It seems like the SP50 is only going to be selling around then anyways, so the best time to buy is when that miner starts selling to the public.

Feel free to discuss this below!

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[zsmith]

I suggest you set up hosting yourself and eliminate one less person you need to trust, as the hoster can also be the trusted third party.  Then you need only lease a facility and host yourself.  I suggest hosting in Eastern Washington.  They have the lowest electricity rates in the country and are among the lowest in the world at $.05 per KW/h for industrial rates.  Furthermore, there is no VAT in the US, unlike most of the rest of the world--this saves you 15%-25% right off the top.  Nowhere else will you find the sweet spot with low electric rates and no VAT.  Rents on facilities are reasonable in Eastern Washington on top of this.  I was actually considering setting up a hosting site in a warehouse there but thought it too much of a hassle to maintain miners if they go offline or whatnot.

[armedmilitia]

Well, I don't trust my skills in hosting many tens/hundreds of KW of hardware, I'd rather leave that to a good hosting company. After all, we wouldn't want a repeat of the cowboyminers fire in Thailand.

I think going with GND's hosting up in labrador would be best, considering how industrial power in that area is sub $0.025 per KW/h. Their hosting rate is $0.0833 per KW/h (including tax and all other fees), and that rate drops with big contracts. There is a 5% customs duty, though, in Canada.

Personally I've had equipment with 3 different hosting companies--and I've done a fair bit of research, and I think those guys are the best option for a big group-buy.

[sidehack]

I'd offer to handle hosting and whatnot, but I could only hold about 25KW and GND has me beat for rate.

[philipma1957]

I'd offer to handle hosting and whatnot, but I could only hold about 25KW and GND has me beat for rate.

right now gnd is best if you are usa or canada.

But if we got 50- 100 s-7's  from people on forum  had a bigger account from GND would they drop price to 7 cents?

[armedmilitia]

I'd offer to handle hosting and whatnot, but I could only hold about 25KW and GND has me beat for rate.

right now gnd is best if you are usa or canada.

But if we got 50- 100 s-7's  from people on forum  had a bigger account from GND would they drop price to 7 cents?

That's the idea! The more people who are in, the lower our costs.

[armedmilitia]

Just heard from a hoster, bump.

UPDATE: I've talked to a hoster that's given me a fee schedule as long as I keep their name a secret until we start the buy. I've dealt with them before, and you will know who they are before this kicks off, if this ever gets off the ground.
50KW @ $58/KW ($0.08/KWh)
100KW @ $55/KW ($0.076/KWh)

As for time frame, I'm thinking we wait and see for new miners to enter market from avalon/SP-TECH, so prices can come down to something reasonable.

[bitterdog]

Anyone remember DMZ Co-op?

learn from history

[sidehack]

Wasn't that in bed with minersource? They're not around to screw things up anymore.

[valkir]

I could be interested with a group of investor. I will let you know. We are 20-25 person that are looking to invest into hardware together to reduce cost. We could maybe join your group.

[armedmilitia]

Great! The more the merrier.

I've heard that the 'mystery' hoster I'm talking to will have more space and lower rates ($50/KW or lower) come Jan 2016, which conveniently should be when miners from other manufacturers are hitting the market. Hopefully that will drive hardware prices down.

[philipma1957]

I would be willing to kick in a bit if kwatt price is decent.

[notlist3d]

Just heard from a hoster, bump.

UPDATE: I've talked to a hoster that's given me a fee schedule as long as I keep their name a secret until we start the buy. I've dealt with them before, and you will know who they are before this kicks off, if this ever gets off the ground.
50KW @ $58/KW ($0.08/KWh)
100KW @ $55/KW ($0.076/KWh)

As for time frame, I'm thinking we wait and see for new miners to enter market from avalon/SP-TECH, so prices can come down to something reasonable.

What country is it being located in?  (I don't need specifics as I understand it's under wraps.

.76 is not if you get this in a decent timeframe.   i wish it was .05 that the magic number that would make me want to be investing for sure.

[armedmilitia]

What country is it being located in?  (I don't need specifics as I understand it's under wraps.

.76 is not if you get this in a decent timeframe.   i wish it was .05 that the magic number that would make me want to be investing for sure.

The country is Canada, and 0.076 is available right now, provided we have 100KW worth of hardware to give em.

Yep, 0.05 would be very nice! Although at that point I'd start thinking it's too good to be true...

[notlist3d]

What country is it being located in?  (I don't need specifics as I understand it's under wraps.

.76 is not if you get this in a decent timeframe.   i wish it was .05 that the magic number that would make me want to be investing for sure.

The country is Canada, and 0.076 is available right now, provided we have 100KW worth of hardware to give em.

Yep, 0.05 would be very nice! Although at that point I'd start thinking it's too good to be true...

It is out there... just I'm not sure it can be done without a huge investment.   So hobby miners kinda have to settle with higher then "the big guys"

[MonetaCoin]

Most hosting companies give pretty big discounts for bulk buyers, and you can get small bulk discounts from most hardware manufacturers. Why don't we take advantage of that in a simple, transparent way?

Here's what I'm thinking:

• Pool funds in a btc address controlled by a trustworthy person.
• Negotiate a purchase of hardware.
• Buy the hardware and pay the hoster up front for a lengthy contract (6 months to a year).
• Have the hardware shipped directly from the manufacturer to our hoster.
• Mine at eligius (transparent and public stats) and have the payout go directly to a btc address controlled by our trustworthy person.
• Divide the payouts proportionately every week/month.
• At the end of the term we can sell the hardware or renew the contract.

If we follow this plan step-by-step we only have to trust three people: The manufacturer, the hoster, and the trusted third party.
Feel free to discuss this below!

UPDATE: I've talked to a hoster that's given me a fee schedule as long as I keep their name a secret until we start the buy. I've dealt with them before, and you will know who they are before this kicks off, if this ever gets off the ground.
50KW @ $58/KW ($0.08/KWh)
100KW @ $55/KW ($0.076/KWh)

As for time frame, I'm thinking we wait and see for new miners to enter market from avalon/SP-TECH, so prices can come down to something reasonable.

If any of my stock is something you are looking for we could work with you. www.cryptolayaway.com we are located in the USA.

[armedmilitia]

Hmm, SP50 just came out. I just sent them an email, lets see if we can get this ball rolling!

[philipma1957]

Hmm, SP50 just came out. I just sent them an email, lets see if we can get this ball rolling!

if we can get 3 that is 50kwatts

6 are 100kwatts.

if the hoster is GND  I would trust him.

price and time are the question.

the gear needs to be in place fast.

330th = 50kwatt  at 8 cents = 96 a day for power.

660th =100kwatt at 7.6 cents = 182.40 a day for power

[Dr Charles]

Ill be following this thread. Would definitely be considering partaking in this ventue if we can get our hands on some SP50's

[carlosmnk]

Ill be following this thread. Would definitely be considering partaking in this ventue if we can get our hands on some SP50's

Me too