Why I'm Giving The Koinos Mining A Miss

in LeoFinancelast month

I've been around this blockchain long enough to know not to get hot and horny for everything that comes along. Yes getting in early on most chains is going to net you some upside but at what cost to you? Since I am a bit of cheap bastard, I tend to let opportunities pass me by on the regular and I've come to terms with that; you can't realise every gain.

So Koinos mining launched yesterday, and a few people have already jumped in I think there are well over 100 token holders who have mined the token already. There's going to be something like 100 million of these tokens kicked out over the next 6 months, and we all love some free money, don't we?

I downloaded the miner, send some ETH to check it out, jumped into the discord to see what the buzz was like and we were off to the races.

Koinos.png

Buggy Miner

The miner kept bugging out when I started using it, and I had to change the ETH endpoint a few times to get it started, naturally always teething issues with things like this. Still, it did leave me feeling a little salty watching others posting their first koinos deposits, and I'm sitting with errors lol.

So depending on your willingness to send proofs you mine through you can change the frequency and then pay the gas fees for the proofs you send and then cover the fees for the tokens you earn.

So you've got to use your PC's resources to complete these proofs and then pay the fees to submit them, yeah I get it but will the token price be worth the fees you pay over the next 6 months, who knows? As more people jump into mine, your potential allocation gets eaten up and so what you might be getting now won't be the same later.

Yes other people will drop off during the 6 month mining period, so if you remain consistent you can probably average out a good stake, but unless you have a PC just to let run day in day out that you're not going to use, I don't think you'll be doing that.

Screenshot 20201014 at 14.32.39.png

My sucky internet and GPU

I'm in South Africa, our internet is shit and my Macbook ain't exactly the device you want to be jumping on to mine with, I just wanted to test it out, and I was pulling between 1 - 2.3 MH/S so not much and with returns like that I'd rek my laptop for a few potential cents, Nah I'll pass.

My PC makes me money

Since my laptop is how I make money, I'm not going to let this thing run on a miner when I could do work on it and earn me cash. Even this post is earning me more than I did mining lol, so why should I bother? I guess passive returns I guess, but as for how much that will be, that's anyone guess.

ETH expenses

Since Koinos is an ERC-20 token, for now, you have to pay ETH/Gas to receive your coins. Eventually, you'll have to move them if you want to sell them or use them in an LP, that's more ETH, so depending on the number of transactions, you could be racking up fees.

Instead, I'll save on that and once it's live on Uniswap buy the token and add it a liquidity pool and net me some returns as the first miners will look to sell and set this new market.

Don't feel bummed

If you're not jumping on the mining train and you see posts about it and hitting that FOMO, but you don't have a decent device just to run this shit in the background, don't feel bad, just participate differently, not everyone is meant to get in on the ground.

I very much doubt this mining operation will launch the project with a lot of decentralisation and from looking at the wallets already, I think that assumption is correct.

This means very few people sitting with a shit ton of coins as is the case with most projects, to realise any profit, the first few coins are normally dumped so you could swoop in on that first stake that gets spent to cover all the mining fees first before miners now look to profit.

The mining isn't the product

I have no doubt the koinos team have solid dev's and are going to launch something really cool, and wish them well, but I'd much rather buy the token on a presale or from miner who has given up then try to mine it myself. I don't need this project to make me rich, to make me profit.

Who knows I might be able to get it mad on the cheap with a lot less effort and still capture some of the upside should this project be successful.

So for now, I'll earn somewhere else and set aside a stake to buy Koinos when it actually has a trading price.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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Pretty much the same, although I have 3 works pcs that could definitely bring me a ton of coins in I gave the miner a look and read the discord a bit then basically also realised oh fuck this is Eth so nothing works properly and everything feels like a monopoly. I will wait for a dump instead. :)

Lol I mean how late can we possibly be really if literally no one knows about the chain! It’s like people jumping in on HIVE now 4 years later are you really that late?

Not really if I can buy some tokens and they can actually get listings and people to use it by all means lol

I mean look at BLURT it’s now getting 3 exchange listings and I’m just letting a bot add some to my account every month which I slowly bleed out the same way with STEEM

I have no real strategy just collect them and if someone wants to offer me money for them sure lol please take it

I saw the posts also about this coin but got put off thinking of all the Eth involved especially coming from our free Hive transaction world. Like you my computer is used for work things and my electricity bill another expenses I rather not see grow. I will keep an eye on project due to the bright team involved. I can't catch every bandwagon but I will be interested in where it settles.

Lol exactly HIVE has made me such a cheapskate, it's why I also yield farm on TRON, do I like the shit that project does no, but it offers me free use of their chain so why not?

Best trades that I have was not getting in at the bottom but catching it as it moves up, pretty sure if there is a wave we can set aside a kitty now to purchase a sizable "presale" stake and still get in on the uptrend.

besides we don't even know how the token will be used on their chain yet. I do think the team has a lot of expertise and will deliver a cool project but with 6 months to mainnet, sure I can save up a few bucks to put into Koinos when it launches

Sorry for delay. Family Sickness and the hardfork have been keeping me offline. I am never a fan of this sort of mining before the chain is launched. There will be many whales and lots of pumping and dumping when things finally do launch. Would have been nice to see it starting everyone who will using the chain at Zero and take it from there. I think it would be more organic.
!ENGAGE15

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Oh well, I FOMOd and sent few ETH. Now, I better use my ETH to mine some KOIN. Like you, i am using an old Mac and it is not mining much. I got into this as this is something I have never done in the past. I don't think I will be rich but I will definitely write a post about it 🤣 That is a recent cool thing to do on Hive. A fun little mining game for me.

LOL well here's a few cents in HIVE and LEO for your troubles and to put towards the cause, I've already burned out the ETH I sent so happy to have that bit of tokens and I'll chill out and go back to being a scummy yield farmer on TRON and Uniswap

!BEER

I will like to how you do that 🤣 I don't mind if i can farm tokens without spending any

You can check out my summary here but basically buy some TRON stake some to get energy which is like resource credits you can use for on chain transactions so it’s free your tron wallet will show you how much energy you have per day to use

So once you download TRON link wallet load up TRON stake for energy

Buy more TRON to farm with

Go to sun.io and choose a Pool you like and either buy the LP pair you need to stake or just provide straight TRON depending on the pool you like

Collect your returns each day without paying a fee due to your energy and reinvest and keep going


Hey @rmsadkri, here is a little bit of BEER from @chekohler for you. Enjoy it!

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Lol, such a killjoy 😜

I'm just doing it as it sounds fun and, although I had a few teething problems as well, I have got it running fully to just click the thing on and away I go. I already have my ETH in the miner so might as well use it. I'm just going to HODL but the miners will get an air drop of what they mined when it comes to KOINOS chain launching and it won't be an erc20 token after mining I don't think... 🤔

Ah I see, so this is just like a IOU on ETH and you get a 1-1 on their chain, hmmm, yes I am a killjoy. I was reading about the whole proofs thing and how you have to keep submitting and I was just like meh! Just let me collect my coins in peace and give the other side of the koinos, people deserve to know why I am left out in the cold

Yeah, check out what happens after mining:

https://github.com/open-orchard/koinos-gui-miner#koinos-airdrop

After the mining period, what next? Koinos is a new blockchain and KOIN currently exists as an ERC-20 on Ethereum. Prior to launching Koinos, we will announce a snapshot time. The ERC-20 contract we are using supports creating a snapshot of all KOIN balances. To redeem your KOIN on Koinos, you will need to sign a transaction on Koinos using the Ethereum private key associated with the address holding the KOIN. We will provide simple tooling to generate and submit this transaction, but bear the requirements in mind when deciding which address(es) to hold your KOIN prior to the snapshot date.

So looks like you get the airdrop based on what you mine but people will probably still sell their mined tokens in any case, which will be available somewhere on an exchange. There's no ICO as far as I can read on that page or any pre-sale so the tokens are just mined in this 6 months.

Well I do have a small number of tokens since I had to get rid of the ETH I added to the miner and that's alright with me.

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Noice, might as well use the ETH if it's in there, I don't know if you can get it out again (although if you have the seed phrase, you might be able to access it on MEW? Not sure)

hmm strange... my miner is hovering in the background with stable 8-9 MH/s, while I do my usual tasks on the same PC, without any sign of slowdown.
The whole installation process was a SNAP, maybe 2 minutes from the click on the miner download link, until I hit START on fully ready miner.

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8-9 MH/S that wouldn't be bad I think I'd be able to pull a fair stake with that, I'm just burning the ETH I did add to the miner now so I'll have a few coins to start with, once the new chain launches but I think I'll just buy once its launched

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Seems like you know what the trading price will be in April. :)
I have no idea. But early players usually end well, unless smth very stupid is done

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Lol its anyone's guess, but willing to live with missing out on this one, whatever the upside may be, can't win em all.

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I guess I'm with you on this one. Besides, we only have old PCs and laptops around here, so I doubt they'd be able to generate much of a hash rate, anyway.

Whereas I have little doubt a few early birds might profit from this, it strikes me that a lot of these projects are basically FOMO driven, and attract lots of people with their "come mine our tokens!" announcements... while few actually stop and ask questions like "Uhmmm... and the PURPOSE of this blockchain is... what? Anyone? Anyone? Bueller?"

It's a "pass" here, as well.

=^..^=

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It's not worth burning out your PC for in my opinion if you could use that PC for something else, I mean I could go and yield farm and realise gains immediately for a lot fewer resources and still pretty passive. I think mining is great if you're going to be a proof of work coin, but if its just to tap into an airdrop it seems like a pretty weird way to get your first coin distribution going.

I mean it's not like the hashing power is being used for anything really, it just seems like a waste. I do hope the early investors make some profits, for there sake, but in my experience of crypto and my biases, it was always better for me to buy in at the right times.

Like you say we don't know what this chain when launches will actually do,and if it does do cool stuff and proves a use case we can still buy in pretty cheap as we are the first to know about it in relative terms to the amount of potential investors to come in after us

I did go through many posts that talked about mining and was not convinced as well. Better, we buy it once it has got some use case.

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Yeah If I had a good PC or one I could spare I'd probably do it, but right now, ill just put a kitty aside to buy some when its finally launched

I'm having a go, just got set up an hour ago; but I don't expect it to be profitable necessarily, it's more a 'learn by doing' exercise.

Did you download the latest version? Seems to be running a lot smoother! It’s my second time mining I did some ETN back in the day and yeah you right it’s soemtbing a crypto enthusiast should tick off his to do list

Whichever they were offering a few hours ago. Seems to be running real nice.
Definitely more user friendly than bitcoin back in the day :)

sweet and how many coins have you been able to mint thus far?

Nothing yet. Set it for once a day, as I don't want to burn through my ETH in gas fees. Reading the white paper, the longer gap you choose, the more volatile your returns. I don't mind peaks and troughs if it saves me gas fees.

I wonder what that magic number for your hash rate will be where your cost transaction fees will exceed the value given Koins would be worth one dollar each. I don't know, Steem Dollars really went up and Lbry token soared in the past. The market is full of crazy buyers of coins. You cannot predict what they will find of value. Even Bitcoin Dark went up like crazy during the bitcoin-fork boom. Bitcoin Dark is not a blockchain fork of Bitcoin. It is telling that Ethereum has so much acceptance that the devs decided to use this chain rather than another chain with orders of magnitude cheaper transaction fees. It's funny they didn't just redo the protoshares mining strategy.

I totally agree with you and I think that is the main reason why people flock to any old coin, you never know what the market will value the token at and it's not about fundamentals, its only about narrative and momentum, these markets like stocks can stay irrational for years and soon the irrationally becomes normalised as people use this as a base to justify certain trades.

I also thought it was quite strange to use ETH as the chain to run your distribution on, it could have been done on EOS, TRON, or any other of those other smart contract chains much cheaper but I did see they want to have a uniswap listing so I assume that also swung in their favour, there's a lot of liquidity on ETH that projects can tap into so I assume that and it being the "most decentralised" of smart contract chains

How did the protoshares mining work?