"Hashback" Rewards - Mining Power as an Incentive

[beeis4blockhive]

Hey everyone,

I work as the head of marketing and PR for a blockchain engineering firm called Blockhive. I am doing research about some of our products and how people perceive them. Our company has a cold wallet app (android and iOS), which rewards users for sending cryptocurrency with in-app tokens, which can be exchanged for mining power at our mining facility in Estonia. Like many cashback rewards programs, it is designed to make our wallet the wallet of choice.


The basic idea: The more you use your wallet, the more tokens you receive (there are no fees). Once you accumulate a set amount of tokens, you can redeem them for hash-power and earn ETH. You would be experiencing mining without having to invest anything into mining hardware or cloud-mining companies.

What do you guys think of this idea? Would it be enough to entice you to download and switch over to a wallet?

We are also going to be rewarding people with these tokens for referrals with an upcoming update to the app. This feature is currently being reviewed by the App Stores. We also plan to implement other rewards with time. We hope to make the rewards relevant to digital technologies that support or are supported by blockchain.

In case you are interested in checking out the app, its available on https://www.eesty.ee.

[eternalgloom]

I don't know if it would be worth it.
Seems like a very convoluted way to offer cashback rewards, meaning that it's not very easy to calculate exactly how much you're getting.

I can't really imagine that you'd earn anything meaningful and you basically have to jump through some hoops to actually cash out your rewards.
Why not give people some actual cashback rewards in ETH? Just skip the whole mining token giveaway process.

[TheUltraElite]

So you basically giving away some shittokens with no intrinsic value to users who opt in to use your wallet?

Lets get this straight. If you are building a system where people just earn money from doing nothing then its going to fail. Those in app tokens that they get -
1.How are they going to encash the ETH value?
2.Will they be traded on a market? If so who is going to buy them?

If you are willing to give mining rewards - how is the mining process going to be streamlined? Is there any proof of the mining procedure or just some cloud mining (a scam)?

[HyughA]

does that not make people even more doubtful if that is the case, in my opinion it will make the lucky parties more fortunate who will not be disappointed

[beeis4blockhive]

Hey guys, love the feedback. I think I forgot to mention that what we are hoping to do is educate people who are new to crypto about mining, and encourage mass adoption by allowing them to receive their first crypto. We have a digital ID system that also rewards them with tokens when they verify their ID, for example.

So you basically giving away some shittokens with no intrinsic value to users who opt in to use your wallet?

Lets get this straight. If you are building a system where people just earn money from doing nothing then its going to fail. Those in app tokens that they get -
1.How are they going to encash the ETH value?
2.Will they be traded on a market? If so who is going to buy them?

If you are willing to give mining rewards - how is the mining process going to be streamlined? Is there any proof of the mining procedure or just some cloud mining (a scam)?

The idea is that through Blockhive's deals with partnerships, the ESTY token could be redeemed for promotional offers, mining power being one of them, as it is one of the currently active products Blockhive offers (https://blog.blockhive.ee/blockhive-announces-launch-of-eesti-mining-e5bf01b9ff8a). On this page you can see a post by the state-administered Eeesti Energia, the biggest energy group in the Baltics, talking about the partnership with Blockhive:  https://www.enefit.com/en/technology-parks

We do not offer cloud mining, but rather administration, operational management and hosting services for companies and larger investors.

Other types of rewards, aside from "hashback", we would be able to offer due to our existing business in that field, such as digital ID management, eResidency services, blockchain dev. training for example.

People would not need do anything different than what they usually would do in order to send crypto, people still need a wallet, any wallet, if they want to use crypto. Why not receive something rather than nothing for doing it?

I don't know if it would be worth it.
Seems like a very convoluted way to offer cashback rewards, meaning that it's not very easy to calculate exactly how much you're getting.

I can't really imagine that you'd earn anything meaningful and you basically have to jump through some hoops to actually cash out your rewards.
Why not give people some actual cashback rewards in ETH? Just skip the whole mining token giveaway process.

If you are receiving ETH over a period of 90 days, you have incentive to keep up with the market, to be informed about the state of crypto. With regards to calculation, the rewards are expressed in hash-power. So for 1000 tokens, you get 1mh/s for 90 days, for example. To cash your reward you just click a button inside the wallet- no jumping through any hoops.

[nc50lc]

I must say: it's a well-thought idea.
However, you should provide more information about this "Cold Wallet" of yours about "how can it be used often (The more you use your wallet, the more tokens you receive)" and what is the basis of the number of token reward per usage?

Normally, cold wallets must stay offline and even disconnected to local network at all time; is there a companion/partner app which can transfer unsigned transaction to the cold wallet and vice versa? If there is, people who often uses cold storage wouldn't trust it unless they can review the code (open source).

I think I forgot to mention that what we are hoping to do is educate people who are new to crypto about mining, and encourage mass adoption by allowing them to receive their first crypto.

Typical newbies don't really care about the type of wallets that they're using as long as it has ease-of-access which Cold wallets don't have. Most of them settle for Payment Processors and Exchange Wallets at first introduction then some switch to either SPV clients or Full node after learning a few things.
Only users who have a crazy amount of Bitcoins/Crypto use a Cold storage wallet for storage and transactions; the remaining users have a Cold Wallet for HODLing purposes and don't actually open it.

Given that, I suggest to reconsider the type of wallet that your project will offer.