Minning Contracts

[ebritno]

Hello, my name is Shane Farrar. While I am not new to bitcoin or the forums (lurker) I have finally made an account here.

I noticed that there are a lot of places selling mining contracts that are scams, with only a few legitimate ones. I created a business plan in an attempt to offer a legitimate service for mining contracts. While there service is not up yet and things are subject to change I was hoping to get some feed back on the price point that I have come up with for the service. I wanted to put it up to scrutiny as I finalize it in the coming weeks. If it holds, I hope to start kick this thing off.

Basically I am hoping to offer shares at $24.99 each. These shares will come with:

• A MINIMUM guarenteed 1 GH/s at any given time.
  • There will be soft prorates that will increase hashing power of a share for an unspecified amount of time. And there will be hard prorates that will increase the MINIMUM atleast twice a year at an amount depending on hardware improvements.
• A minimum of 4 years service. Contracts will continue to run after 4 years if they remain profitable.
• No mandatory Reinvestment
• No hidden fees
• No skimming of the coins produced by the shares.
• No repair, power, or equipment fees for the first 4 years (up to 5% of production thereafter)

What do you guys think?

[coins101]

4 years in mining terms is a lifetime.

renewable contracts every 6 months, and you might have a winning proposal.

[ebritno]

4 years in mining terms is a lifetime.

renewable contracts every 6 months, and you might have a winning proposal.

If I were to offer something like that, what do you think the price should look like? reasonably speaking?

The reason why I offered the 4 year share, is because when I researched competitors to create my model, I noticed that mining contractors where charging people for the hardware and for future hardware. In extreme cases they even charge their customers for making a profit.

As I reviewed the different models it seemed to me that the best way to insure that my customers could produce a profit would be to treat them as if I was selling them a physical piece of hardware. Where the profits are their own.

1 GH/s isn't going to produce a profit for 4 years.
But because it is prorated with a minimum number of years, it is almost like I'm selling hardware that grows and comes with a 4 year warranty.

As opposed to renew contracts, customers would purchase more shares every so often if it remained profitable. I plan to increase the minimum share hashing power every 6 months at a minimum which I think will help to keep up with difficulty.

But obviously, if that's not popular I can rework the numbers and see what I can do.

Such as offer more GH/s for a short but fixed period as you seem to suggest.

[ebritno]

Sorry for double post.

Alternative price points could be:

12⁹⁹ for 1 GH/s/6 months
24⁹⁹ for 2 GH/s/6 months
54⁹⁹ for 5 GH/s/6 months

Theoretically no minimum purchase.

That is off the top of my head, I might be able to work them down if I review my model.

Does anyone else have an opinion of the renewable fixed contracts versus practically indefinite shares