MaxiMine offers an easy, blockchain-based method of distributing mining rewards. By combining staking, smart contracts, and its own token, MaxiMine has created a “cloud mining pool” system that is as transparent and open as the blockchain itself.
There are currently two main methods for people to get into crypto-asset mining: pay for a cloud-mining service or set up your own mining rig and join a mining pool.
Investing in a cloud-mining service essentially means trusting a centralized mining-farm operator to not only do the physical mining for you, but also to treat you honestly and fairly. Setting up your own mining operations means having a high level of technical expertise and spending a large amount of money just to start up. MaxiMine offers a third way.
What is MaxiMine?
MaxiMine is a mining-pool platform that comprises of physical mining farms set up in locations throughout the world and a smart-contract system built on Ethereum. The physical mining farms do the work of mining for different crypto assets like Bitcoin, and the system of smart contracts distributes the mining rewards to MaxiMine (MXM) token holders.
By having their reward-distribution platform on a public blockchain like Ethereum, MaxiMine can offer transparency and openness in a way that centralized cloud-mining platforms cannot. The mechanisms, fees, and processes of the platform are transparent and open for anyone to participate in.
Who Invented MaxiMine?
Hua Cai, who has been starting mining farms in northern China since 2013, is the founder and current CTO of MaxiMine.
Did you know?
MaxiMine owns more than 20 patents related to crypto-asset mining, including the BTC-BOX, which is a mining rig built inside a shipping container. The BTC-BOX is a self-contained mining unit that is optimized for climate control and durability, which allows it to be easily and quickly set up almost anywhere.
A brief history
- July 2017 – The MaxiMine project is officially launched
- June 2018 – MaxiMine completes its ICO, raising a total of 80,000 ETH
- November 2018 – The first mining rewards are paid to MaxiMine (MXM) token holders who have staked their MXM tokens on the platform
What’s so special about it?
The primary difference between MaxiMine and other cloud-mining platforms is their “Hashing Power Credit System,” which is essentially a system where MXM token holders stake their tokens for a share of MaxiMine’s mining rewards.
Hashing power is the speed at which a mining rig can solve a consensus algorithm like proof of work. The more hashing power, the more chances of solving the algorithm, and the more mining rewards you are likely to receive. Essentially, the MXM tokens represent the price of hashing power on MaxiMine’s mining network.
The amount of hashing power received for staking MXM tokens is based on a formula, which calculates the price of equipment, hashing power of rigs, average price of MXM, deposit period, network difficulty, and capacity and efficiency of the entire MaxiMine mining farm.
Did you know?
MaxiMine is part of the MXM Global Miners Alliance, which seeks to bring together leaders of the crypto-mining community with the goal of becoming the world’s largest mining pool.
What else is different?
Since MaxiMine’s mining operations mine many different crypto assets, rewards are paid out in different assets. The problem is that different blockchain networks, such as Bitcoin and Ethereum, are not designed to communicate with each other.
To solve this, MaxiMine has created a system to keep track of mining rewards on different blockchains using ERC20 tokens. Essentially, new ERC20 tokens are minted by MaxiMine’s system every time mining rewards are received so that the system can keep track of rewards on all the different networks. For example, if an MXM token holder is getting rewarded in Bitcoin, then a valueless “MBTC” token is minted and the actual Bitcoin reward is distributed the MXM token holder at a later time.
How is MXM produced?
There is a total supply of 16 billion MXM tokens with 50 percent of the tokens reserved for token sale investors, 20 percent for community support and development, 20 percent for reserves of the MaxiMine foundation, and 10 percent for the founding team.
How do you get hold of MXM?
MXM is an ERC20 token that can be bought or traded on exchanges such as CoinBene and BitForex.
What can you do with MXM?
Holders of the MXM token are essentially investors in the MaxiMine mining operations and, as a result, are entitled to a share of the mining rewards that come from the mining farms. MXM token holders must stake their tokens in the MaxiMine platform in order to receive mining rewards. This means that anyone who is able to purchase and stake the MXM token is able to participate in crypto-asset mining.
The Future
MXM stakers or investors receive 80 percent of the mining rewards that come from their hashing power. The remaining 20 percent of the mining rewards are used for operational expenses and reinvestment into the mining farm.
This reinvestment of profits is where MaxiMine is heading toward in the future. They claim to have a profitable model and will look to grow and expand that model by continuing to invest in more facilities, equipment, and technology.
