Proposal: Mining bonuses

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Steve Sokolowski
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Joined: Wed Aug 27, 2014 3:27 pm
Location: State College, PA

Proposal: Mining bonuses

Post by Steve Sokolowski » Mon May 24, 2021 11:29 am

I put up a poll to determine interest in the proposal described in this post. Please vote in the poll after you've read the details. The proposal is to add a new feature called "mining bonuses." Customers would be able to choose whether or not to enable this feature.

If not enabled
  • The payout system functions the same as it does now.
  • Each valid share or PPLNS or solo block becomes eligible for payout at the next midnight Eastern time, and that money is paid within 24 hours of becoming eligible.

If enabled
  • Each valid share or block becomes eligible for payout at the next midnight Eastern time plus 31 days, and that money is paid within the next 24 hours of becoming eligible.
  • Customers earn a bonus in exchange for delaying payouts, which will vary according to the type of coin. The bonuses would be about 1% for DOGE and USDC, 0.3% for ETH, 0.4% for LTC, and 0.2% for BTC.
The way this works is that money owed for payouts could be opened with a 1-month term loan at Genesis Trading, the "prime broker" of the cryptocurrency space. Genesis does not accept customers with under $5m in assets, so many people have to go through other more risky companies to earn interest, most of which charge high withdrawal fees that negate all the interest on small balances. While Prohashing would continue not to accept deposits, customers could use this month delay to earn additional revenue on top of normal mining.
Alynn
Posts: 55
Joined: Wed Mar 03, 2021 12:40 pm

Re: Proposal: Mining bonuses

Post by Alynn » Mon May 24, 2021 11:40 am

So basically, you would loan our payouts to a lender and split the interest earned with us.

Yes, I would totally be behind this.
-MaVerick-
Posts: 35
Joined: Wed May 12, 2021 3:12 pm

Re: Proposal: Mining bonuses

Post by -MaVerick- » Mon May 24, 2021 11:47 am

Just so make sure I get this right, english isn't my native language and finance stuff is a little hard to grasp for me. Instead of waiting the usual 24h hours for a payout we can opt in so the payout will be in a month with a little cherry on top because in that time a broker could work with said money and make it a bit more.

Is that kinda right? If yes, doesn't sound too bad if Prohashing and we as a user get some profit out of it.
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Steve Sokolowski
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Joined: Wed Aug 27, 2014 3:27 pm
Location: State College, PA

Re: Proposal: Mining bonuses

Post by Steve Sokolowski » Mon May 24, 2021 11:49 am

Alynn wrote:
Mon May 24, 2021 11:40 am
So basically, you would loan our payouts to a lender and split the interest earned with us.

Yes, I would totally be behind this.
Not split the interest - give it to you, provided that you accept full liability in the extremely improbable event that Genesis loses the money (which would essentially collapse the entire cryptocurrency exchange industry.) An "I agree" checkbox accepting that liability during those 30 days does not fall onto us would be required. That said, Genesis has never had an unrecoverable loan default.

Keep in mind the key point here though - you would not be able to be paid for 30 days, even if prices decline during that period. Basically, there would be no payouts for 30 days when you start mining, and then payouts would resume as before, but at a higher bonus rate than what you would have earned with immediate payouts. I want to make sure that people who are voting understand that.
Alynn
Posts: 55
Joined: Wed Mar 03, 2021 12:40 pm

Re: Proposal: Mining bonuses

Post by Alynn » Mon May 24, 2021 12:09 pm

Yeah, I mean we all run the risk of coins lowering in price. Unless people are selling for cash immediately every day. Doge can go back to sub penny tomorrow for all we know.

So then I guess my only other question is the % on the coin, or on the value of the coin? 1% extra DOGE and 1% of the value of DOGE are different.
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Banished_Privateer
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Re: Proposal: Mining bonuses

Post by Banished_Privateer » Mon May 24, 2021 12:19 pm

So my question is, our payouts become frozen for a period of 30 days and after these 30 days they resume on daily basis? Or does it simply become monthly interval.

Another question would be if we can revert the change, say we opted in but after month or two we change our mind and want to go back to the old system.
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Steve Sokolowski
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Location: State College, PA

Re: Proposal: Mining bonuses

Post by Steve Sokolowski » Mon May 24, 2021 2:01 pm

Banished_Privateer wrote:
Mon May 24, 2021 12:19 pm
So my question is, our payouts become frozen for a period of 30 days and after these 30 days they resume on daily basis? Or does it simply become monthly interval.

Another question would be if we can revert the change, say we opted in but after month or two we change our mind and want to go back to the old system.
You could revert the change, but the earnings during the period that you were with the proposed system would still be delayed by 30 days and would still receive the bonus. Payouts you earned after that would have no delay.
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Jaiven
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Joined: Thu May 06, 2021 3:56 pm

Re: Proposal: Mining bonuses

Post by Jaiven » Mon May 24, 2021 4:06 pm

Steve Sokolowski wrote:
Mon May 24, 2021 11:49 am
Alynn wrote:
Mon May 24, 2021 11:40 am
So basically, you would loan our payouts to a lender and split the interest earned with us.

Yes, I would totally be behind this.
Not split the interest - give it to you, provided that you accept full liability in the extremely improbable event that Genesis loses the money (which would essentially collapse the entire cryptocurrency exchange industry.) An "I agree" checkbox accepting that liability during those 30 days does not fall onto us would be required. That said, Genesis has never had an unrecoverable loan default.

Keep in mind the key point here though - you would not be able to be paid for 30 days, even if prices decline during that period. Basically, there would be no payouts for 30 days when you start mining, and then payouts would resume as before, but at a higher bonus rate than what you would have earned with immediate payouts. I want to make sure that people who are voting understand that.
I just want to make sure I understand this correctly. So I mine 20 doge one day and opted in. in a month later I get back 20 worth of dodge plus the interest correct? Not something like the value of the doge, because that could change hourly? I guess I am saying, 5 dollars of doge or any currency can be much different a month from now, so its based on the coin given to the lender and not the value? I'm perfectly fine with a coin for coin amount where I gain interest on, but not a current price as in 5 usd of doge in and 5 dollars of it back.
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Steve Sokolowski
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Location: State College, PA

Re: Proposal: Mining bonuses

Post by Steve Sokolowski » Mon May 24, 2021 4:35 pm

Jaiven wrote:
Mon May 24, 2021 4:06 pm
Steve Sokolowski wrote:
Mon May 24, 2021 11:49 am
Alynn wrote:
Mon May 24, 2021 11:40 am
So basically, you would loan our payouts to a lender and split the interest earned with us.

Yes, I would totally be behind this.
Not split the interest - give it to you, provided that you accept full liability in the extremely improbable event that Genesis loses the money (which would essentially collapse the entire cryptocurrency exchange industry.) An "I agree" checkbox accepting that liability during those 30 days does not fall onto us would be required. That said, Genesis has never had an unrecoverable loan default.

Keep in mind the key point here though - you would not be able to be paid for 30 days, even if prices decline during that period. Basically, there would be no payouts for 30 days when you start mining, and then payouts would resume as before, but at a higher bonus rate than what you would have earned with immediate payouts. I want to make sure that people who are voting understand that.
I just want to make sure I understand this correctly. So I mine 20 doge one day and opted in. in a month later I get back 20 worth of dodge plus the interest correct? Not something like the value of the doge, because that could change hourly? I guess I am saying, 5 dollars of doge or any currency can be much different a month from now, so its based on the coin given to the lender and not the value? I'm perfectly fine with a coin for coin amount where I gain interest on, but not a current price as in 5 usd of doge in and 5 dollars of it back.
You would be paid 20.2 DOGE, where if you hadn't opted in, you would receive the 20 DOGE you earned.
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Jaiven
Posts: 24
Joined: Thu May 06, 2021 3:56 pm

Re: Proposal: Mining bonuses

Post by Jaiven » Mon May 24, 2021 6:57 pm

Steve Sokolowski wrote:
Mon May 24, 2021 11:49 am


You would be paid 20.2 DOGE, where if you hadn't opted in, you would receive the 20 DOGE you earned.
Thanks for the clarification!
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