-

[ksenter]

To clear anything up.  I would be paying out Dividends with the hardware in hand and holding the payout from the new hardware coming in for 2 weeks.  It seems as though a couple individuals didn't quite understand.  It appears the general consensus is to do so.

One of the main reasons for doing this I can't share as of yet because it's not my news to share.  People would just have to know it's for the greater good of the company and would help out a ton in the long run.

Would this just be for the upcoming bit fury orders, or are you saying from this point forward whenever you get new hardware you'll mine with it for 2 weeks to get btc for future purchases before beginning to pay dividends on it?

[SimonBelmond]

Wow, btct shutting down? I wonder if the SEC got after them? this is going to bring everyone to bitfunder. not sure if thats a good thing or a bad thing.. But, I do think that will bring more light to LRM and people will see the value and im confident that it will continue to be a popular bond...

Im in for whats ever best for LRM short term, especially long term..

Just another reason to support Open-Transactions. Please give some of your dividends to OT so We can have a truly decentralized exchange and smart contracting system. We will not have to worry about such shutdowns any longer or at least not as much.

[mmmerlin]

To clear anything up.  I would be paying out Dividends with the hardware in hand and holding the payout from the new hardware coming in for 2 weeks.  It seems as though a couple individuals didn't quite understand.  It appears the general consensus is to do so.

One of the main reasons for doing this I can't share as of yet because it's not my news to share.  People would just have to know it's for the greater good of the company and would help out a ton in the long run.

Would this just be for the upcoming bit fury orders, or are you saying from this point forward whenever you get new hardware you'll mine with it for 2 weeks to get btc for future purchases before beginning to pay dividends on it?

This decision/vote was just for the upcoming BitFury orders, but it may or may not be good to repeat the exercise in the future, it all depends on the situation.

I think each bridge will be crossed when we come to it, but essentially everyone has the long term success of LRM as their goal, so it should be relatively easy to see the way forward in future.

[rustyh17]

After speaking with LRM, I believe the hash rate increase we'll experience by donating 2 weeks of dividends
to LRM will more than offset any difficulty increase over that same period of time. It will also set LRM up for
the next hardware acquisition phase(s) occurring over the next 180 days.

[mmmerlin]

Wow, btct shutting down? I wonder if the SEC got after them? this is going to bring everyone to bitfunder. not sure if thats a good thing or a bad thing.. But, I do think that will bring more light to LRM and people will see the value and im confident that it will continue to be a popular bond...

Im in for whats ever best for LRM short term, especially long term..

But they had that super-robust disclaimer about it all being just a game on their front page... And you had to like, click accept and everything, I thought that was water-tight!

[mmmerlin]

After speaking with LRM, I believe the hash rate increase we'll experience by donating 2 weeks of dividends
to LRM will more than offset any difficulty increase over that same period of time. It will also set LRM up for
the next hardware acquisition phase(s) occurring over the next 180 days.

A lot more, and otherwise we wouldn't be doing it! But yes, I think this is now settled and is going ahead.

[BKM]

Wow, btct shutting down? I wonder if the SEC got after them? this is going to bring everyone to bitfunder. not sure if thats a good thing or a bad thing.. But, I do think that will bring more light to LRM and people will see the value and im confident that it will continue to be a popular bond...

Im in for whats ever best for LRM short term, especially long term..

Just another reason to support Open-Transactions. Please give some of your dividends to OT so We can have a truly decentralized exchange and smart contracting system. We will not have to worry about such shutdowns any longer or at least not as much.

OT is being formalized as Monetas. Fellowtraveler is part of the Monetas founder team and they are making serious progress. www.monetas.net

Btct shutting down is serious. Fortunately, Zach purposefully structured LRM to be within the regulatory climate for private companies. This is definitely not the case for others in the marketplace who have floated offerings of millions of shares. It will be very interesting to see what happens with Bitfunder in the coming weeks. That said LRM is also positioned to work without bitfunder. Can you say "distributed peer to peer blockchain based corporate entities" three times fast?

[mmmerlin]

Wow, btct shutting down? I wonder if the SEC got after them? this is going to bring everyone to bitfunder. not sure if thats a good thing or a bad thing.. But, I do think that will bring more light to LRM and people will see the value and im confident that it will continue to be a popular bond...

Im in for whats ever best for LRM short term, especially long term..

Just another reason to support Open-Transactions. Please give some of your dividends to OT so We can have a truly decentralized exchange and smart contracting system. We will not have to worry about such shutdowns any longer or at least not as much.

OT is being formalized as Monetas. Fellowtraveler is part of the Monetas founder team and they are making serious progress. www.monetas.net

Btct shutting down is serious. Fortunately, Zach purposefully structured LRM to be within the regulatory climate for private companies. This is definitely not the case for others in the marketplace who have floated offerings of millions of shares. It will be very interesting to see what happens with Bitfunder in the coming weeks. That said LRM is also positioned to work without bitfunder. Can you say "distributed peer to peer blockchain based corporate entities" three times fast?

BTC-TC shutting down is indeed very serious. Was there a particular action taken that made them do it, or was it just the general regulatory climate/atmosphere?

[ipxtreme]

Hey everyone,

NEWS/INFORMATION
----------------------------------------------------------------------------

My apologies for it being so long since the last update.  Yes, Dave is now mining for us.

With the news Dave gave me as to a time frame on receiving hardware, I realized I needed to hurry up on getting the second hosting location up and going.  I'm almost ready and by mid Oct it should have a virtual boatload of BitFury gear hashing away in it.

There were two minor hiccups in the last week.  One was a small networking issue that I fixed within 30 minutes, but the other was out of my control.  For the first time in the many months I've been mining in James' pool, it went down.  It wasn't that the pool went completely down, but James was doing upgrades/updates to the pool and it kept flashing off and back on at random when he restarted it.  This made it appear that the hashrate went down due to the moving average on the pool.  In a few occasions the pool went down for a split second too long and some miners switched to another pool.  It appears he is done with the updates/upgrades, but to be sure I split the hardware between BTCGuild (I didn't want to do that) and James' pool.

BTCGuild is far overpowered at almost 43% of the network and the 100TH mine is going up pointed at them which doesn't help.  I don't want to help throw them over the edge by pointing more TH at them, so this solution isn't permanent.

I have learned a lot about mining at scale in the last couple weeks and Dave (BitFury) and I have discussed our issues to make sure the other one doesn't run into the same issues.

PROPOSITION
----------------------------------------------------------------------------

Dave has given me information that could gain LRM a far greater amount of hardware than originally intended as long as everything goes to plan.  There are a few individuals who hold a very large amount of LRM bonds who have all given me the same idea.  Although my contract gives no one voting rights, I'm not the type of individual to veto the masses vote. (This is me showing I'm not looking to screw over the public for a few bucks  )

This idea states that (and my contract allows for) LRM to mine for 2 full weeks with new hardware without paying dividends from it.  What I would do if the public will generally agree to this is use this hardware to mine and scoop up a large sum of BTC.  ~5% would be necessary for power consumption and ~5% would be requested as a management fee for setting up hundreds and hundreds of h-cards and getting everything mining in a very speedy manner.  The other 90% would go straight into the hardware that Dave can give me a killer deal on.

If you would consider this, it could mean wonders for the company in the long run getting a better head-start.

NEWS REGARDING OTHER MANUFACTURERS
---------------------------------------------------------------------------

CoinTerra -- VP of sales with CoinTerra and I have been in contact and will remain in contact.  We will be trying to work out a deal to maybe get some Dec and Jan equipment.  Things looked good when I spoke to him.

If people want my opinion on which 28nm company will deliver on time (or even at all) it will likely be CoinTerra, which is why I'm interested in remaining in contact with them.

BFL -- Their recent announcement to host by the GH is exactly the opposite of my beliefs when it comes to PMBs.  If you purchase a defined hashrate, your payout will only continue to go down.  My intention is to keep up with the difficulty (to an extent) until it begins to level off.



I hope everyone can understand how much time and effort it takes to put together an operation of this size and can forgive me for not being as public as I used to be.

-Lab_Rat

thanks LR. Can you put this update on your main page. It took me a hour to find any news or updates to LRM just to stumble upon this critical one.

Thanks

[mmmerlin]

thanks LR. Can you put this update on your main page. It took me a hour to find any news or updates to LRM just to stumble upon this critical one.

Thanks

Always worth checking here first! 

But yes, this should definitely be put on the main website, and the fact that (I believe) the motion has now passed as well.

Some sort of announcement also should be made on BitFunder, as this needs to be public knowledge for prospective buyers as it will affect people's decisions considerably...

[bigasic]

Just for the record, I finally decide that it was for the better good and vote yes (like it matters what I think, lol). One question, when will the funds be able to purchase the equipment? are we looking at purchasing it in october but have to wait til jan or later to receive the equipment? Im hoping that it will be a quick turnaround not in bfl time, either, lol....

Zach, It would be great if you gave everyone as much info as you can, like how many coins are anticipated? and timeframe for receiving the miners from those dividends....

[twmz]

It appears he is done with the updates/upgrades, but to be sure I split the hardware between BTCGuild (I didn't want to do that) and James' pool.

Until the situation changes, can you please share what the Lab_Rat user ID is on btcguild (as shown on this page: http://www.btcguild.com/index.php?page=rankings) so that we have some transparency on hashrate?

[mmmerlin]

Just for the record, I finally decide that it was for the better good and vote yes (like it matters what I think, lol). One question, when will the funds be able to purchase the equipment? are we looking at purchasing it in october but have to wait til jan or later to receive the equipment? Im hoping that it will be a quick turnaround not in bfl time, either, lol....

Zach, It would be great if you gave everyone as much info as you can, like how many coins are anticipated? and timeframe for receiving the miners from those dividends....

I will wait for him to give an official announcement as I don't want to put my foot in anything, but my understanding was that the turn around on these particular coins being turned back into hardware would be surprisingly quick...

[ipxtreme]

Whats the current hash rate. Last update on labratmining.com was from 9/8/13.

[mmmerlin]

It appears he is done with the updates/upgrades, but to be sure I split the hardware between BTCGuild (I didn't want to do that) and James' pool.

Until the situation changes, can you please share what the Lab_Rat user ID is on btcguild (as shown on this page: http://www.btcguild.com/index.php?page=rankings) so that we have some transparency on hashrate?

Unless most of the current hardware is pointed at BTCGuild it won't show up on the leaders board I'm afraid.

Although not ideal, transparency does at least come once a week in the form of dividends...

[twmz]

It appears he is done with the updates/upgrades, but to be sure I split the hardware between BTCGuild (I didn't want to do that) and James' pool.

Until the situation changes, can you please share what the Lab_Rat user ID is on btcguild (as shown on this page: http://www.btcguild.com/index.php?page=rankings) so that we have some transparency on hashrate?

Unless most of the current hardware is pointed at BTCGuild it won't show up on the leaders board I'm afraid.

Although not ideal, transparency does at least come once a week in the form of dividends...

Dividends are not transparency.  Transparency is being able to independently confirm the hashrate throughout the week to validate that the dividends match approx what they should have been.

And with only 0.7 TH/s pointed at James' pool at the moment, there should be 3+ TH/s on btcguild (unless there is a third pool in play) which should be enough for it to appear on the leader board.  That will be even more likely to happen if additional hash power gets added soon.

[ipxtreme]

+1 twmz

[mmmerlin]

It appears he is done with the updates/upgrades, but to be sure I split the hardware between BTCGuild (I didn't want to do that) and James' pool.

Until the situation changes, can you please share what the Lab_Rat user ID is on btcguild (as shown on this page: http://www.btcguild.com/index.php?page=rankings) so that we have some transparency on hashrate?

Unless most of the current hardware is pointed at BTCGuild it won't show up on the leaders board I'm afraid.

Although not ideal, transparency does at least come once a week in the form of dividends...

Dividends are not transparency.  Transparency is being able to independently confirm the hashrate throughout the week to validate that the dividends match approx what they should have been.

And with only 0.7 TH/s pointed at James' pool at the moment, there should be 3+ TH/s on btcguild (unless there is a third pool in play) which should be enough for it to appear on the leader board.  That will be even more likely to happen if additional hash power gets added soon.

Fair enough, I didn't realise there was that little pointed at the other pool. And of course it isn't proper transparency, I just thought it would have to suffice as the split was going to make it impossible, but if the split is in that ratio then what you are suggesting is indeed possible, and would be nice to see!

[mmmerlin]

Just posted this on the BFL forum in response to a question and thought it was worth reposting here for clarification of future questions:

Dividends will not stop at all, and shouldn't even go down. What will happen is that when the large shipment of BitFury gear arrives, instead of instantly seeing what will be a huge boost in dividends, this boost will be seen two weeks later, with the coins mined in the meantime going towards reinvestment.

So there will be no stopping of dividends at all, just a two week delay in when the big jump comes. And the big jump from the resuming of normal operation will not come on Oct 12th, or any date exactly, it will be two full mining weeks after whenever the BitFury shipment arrives at LRM.

I hope that makes everything clear!

[||bit]

Transparency would be nice, but dividends as a measure of transparency is no better than the periodic "interest" received from a ponzi scheme. Personally, I think Labrat should point all of the hashing power at BTC Guild, and enable the namecoin mining option in their pool.  It would allow investors to track the rate, and add an extra 2%-3% return OVER what would otherwise be generated. LRM needs all it can get at this point. It would be nicer to have a pool that has merged mining and zero pool fee's.

Regarding LRM's growth plan:
Some seem to think future bonds sales are a way to achieve sustainability. Personally, I loathe the idea that growth would depend on future bond sales. That would be more like a ponzi scheme than any self-sustaining business model. So, it appears the two week dividend cuts for new hardware will need to happen for all future hardware received. Otherwise LRM would shrivel up like a raisin, or depend on future bond sales.

Some clarity for investors, and I hate to have to say this, but the two weeks of mining with no dividends will not necessarily place LRM in a more advantageous position than was already estimated for this year on the LRM website. The best chance, as far as I see, to beat the prior estimations is to actually receive Monarchs before the end of the year, OR to sell out of that Monarch order and purchase Bitfury hardware (asap).

For those that agree the Monarchs are not a good thing to wait for... Send messages directly to Labrat to ask that selling the Monarch order be one of the top priorities.