What is Gomining Token

Article Summary, Automatically Generated By AI

About Gomining

Key Points

• Gomining is a Liquid Bitcoin Hashrate protocol that allows users to own Bitcoin hashrate digitally as an NFT asset.
• Users can trade or use their hashrate NFT as collateral in DeFi.
• The hashrate NFT position continuously generates Bitcoins.
• Gomining token combines a Discount token, a modified version of the burn and mint equilibrium (BME), and ve Token (voter escrowed) governance model.
• The GOMINING token has three functions: Discount token for electricity payments, Protocol governance, and upgrading hashrate and energy efficiency.
• Liquid Bitcoin Hasrate NFTs are issued by Service Providers

About Gomining: Empowering Cryptocurrency Mining Excellence

Introducing the Gomining Protocol: A Revolutionary Framework

GoMining is a pioneering Liquid Bitcoin Hashrate protocol, revolutionizing the way miners operate.

Gomining enables users to digitally own Bitcoin hashrate as a unique NFT asset on the Ethereum and BNB chains, as well as the Bitcoin blockchain (ordinals), eliminating the need for physical mining infrastructure ownership and maintenance.

By streamlining the Bitcoin mining process, it empowers millions of users and unlocks the vast potential of Bitcoin’s hashrate, enabling its utilization as a Real World Asset (RWA) in DeFi applications.

The hashrate NFT position perpetually yields Bitcoins and can be seamlessly traded or utilized as collateral in decentralized finance (DeFi) platforms, just like any other asset. To facilitate this, Gomining pioneered and developed the innovative Liquid Bitcoin Hashrate (LBH) concept, wherein the physical mining equipment and corresponding hashrate operate in the data center, while the user retains ownership of an NFT that symbolizes the hashrate position.

The LBH tokens can be leveraged in DeFi ecosystems, akin to Ethereum-based LSTs (liquid staking tokens), to generate passive income on behalf of their owners, facilitate seamless trading, and unlock borrowing and lending opportunities within DeFi protocols. For instance, LBH tokens can serve as collateral for borrowing stablecoins, enabling farming strategies and providing supplementary income streams to LBH token holders. Moreover, NFT owners can participate in play-to-earn mechanisms that enhance the NFT-based mining experience, foster community engagement, and yield additional revenue streams. Gomining is actively developing GameFi elements that enable users to accrue supplementary income through NFTs, augmenting primary BTC mining proceeds.

Introducing the Gomining Token: A Revolutionary Cryptocurrency

The GoMining token’s innovative design seamlessly integrates a Discount token, a refined adaptation of the burn and mint equilibrium (BME) [2] [3], and a ve Token (voter escrowed) governance model [4], fostering a harmonious balance between functionality and governance.

The GOMINING token assumes a multifaceted role within the Gomining ecosystem, encompassing the following functions:

Introducing a discount token for electricity payments. As NFT hashrate owners are obligated to cover electricity and maintenance expenses, which are subtracted from their BTC mining revenue, utilizing the Gomining token for these payments yields a 10% discount, thereby enabling users to continuously mine more bitcoins.

Protocol Governance. Through active participation in Gomining’s governance, users can exercise their voting power on proposals, shape protocol management, and significantly influence the distribution of Gomining rewards to the community of NFT owners and GameFi enthusiasts. To engage in this process, users must lock their tokens into a veGMT contract, which operates in a manner analogous to the established veCRV (vote-escrowed Curve contract) model.

By locking Gomining tokens in a vote-escrow (ve) contract, users are entitled to two primary benefits: (1) a certain number of votes and (2) a share of stake rewards. Notably, the duration of the lock directly correlates with the magnitude of these benefits, with longer lock periods yielding a greater number of votes and a larger stake in the reward distribution for a given quantity of locked Gomining tokens.

Beyond the benefits of Discount Token Utility and Governance Utility, token holders can leverage Gomining tokens to enhance the hashrate and energy efficiency of their Liquid Bitcoin Hashrate positions.

The Issuance Process of Liquid Bitcoin Hashrate NFTs

Liquid Bitcoin Hashrate NFTs are minted by Service Providers leveraging Gomining’s infrastructure.
The prerequisites for Service Providers encompass: (1) publicly verifiable hashrate proof within established BTC mining pools, and (2) membership in esteemed mining organizations, such as the Bitcoin Mining Council. Looking ahead, Gomining plans to launch its own BTC mining pool, which will further enhance transparency by mandating Service Providers to utilize it.

The Allocation of Gomining Community Rewards: A Breakdown

The Gomining community facilitates a reward distribution mechanism through weekly voting, wherein participants are required to lock their Gomining tokens into a vote-escrow contract (veGMT) in order to accrue voting power.

Unlocking the Power of Hashrate NFTs: A Comprehensive Guide to Buying and Utilizing them for BTC Mining

Users have the flexibility to acquire NFTs on the Gomining platform or through prominent NFT marketplaces such as OpenSea. Once the NFT is reflected in their wallet balance, users are required to visit the Gomining website, establish a connection with their wallet, and provide their BTC wallet address to receive the accrued mining proceeds. A more efficient mining strategy involves utilizing GMT tokens to cover electricity and maintenance expenses. GMT tokens can be conveniently purchased on various centralized exchanges (CEX), Uniswap (Ethereum), PancakeSwap (BNB chain), or directly on the Gomining website, which seamlessly integrates all purchase options on a single page.

The Circulation Mechanics of Gomining Tokens: A Comprehensive Overview

The Gomining token operates on the burn-and-mint equilibrium model (BME), which facilitates its circulation within the ecosystem. This mechanism functions as follows: all tokens utilized by users to cover electricity and maintenance costs, as well as other activities, are systematically burned, and subsequently, an equivalent amount of new Gomining tokens are minted through a smart contract, thereby maintaining a delicate balance.

The burning and minting process is predicated on a carefully calibrated system of epochs and minting coefficients. Each epoch is characterized by a specific allocation of tokens to be burned and minted, governed by a mining coefficient that incrementally increases with each successive epoch. The entire process is divided into 20 distinct epochs, and we have outlined some key highlights below:

• Epoch 0: A total of 10,000,000 tokens were burnt, with 8,000,000 tokens minted, yielding a coefficient of 0.80.
• Epoch 1: The burning of 20,000,000 tokens was accompanied by the minting of 16,200,000 tokens, resulting in a coefficient of 0.81.
• Epoch 2: A further 30,000,000 tokens were burnt, with 24,600,000 tokens minted, corresponding to a coefficient of 0.82.
• …
• Epoch 17: The burning of 750,000,000 tokens was followed by the minting of 727,500,000 tokens, yielding a coefficient of 0.97.
• Epoch 18: A substantial 1,345,762,000 tokens were burnt, with 1,318,846,760 tokens minted, maintaining a coefficient of 0.97.
• Epoch 19 (the Final Epoch): An infinite number of tokens can be burnt and minted, with a coefficient of 0.99.

The newly minted tokens are allocated to:

• A significant allocation of 65% is designated for Service Providers, also referred to as hashrate NFT issuers, to compensate for their electricity and maintenance expenditures.

• Governance stakers are entitled to 20% of the allocation.

• A portion of 10% is reserved for rewards and incentives, which will be utilized to motivate NFT owners and facilitate engaging GameFi activities.

• The team behind the project will retain 5% of the allocation.

Service Providers (hashrate NFT issuers) are entitled to compensation for their electricity and maintenance expenditures, which account for approximately 65% of the total costs.

Governance stakeholders, comprising 20% of the total,

Rewards and incentives for NFT proprietors and participants in GameFi experiences (10%)

The core development team (5%)