Clever Idea from HiroCoin

LazarusLong10

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Mar 26, 2014
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The HiroCoin devs are working on a really good idea for boosting interest in their coin - a scrypt switchpool that pays out in Hiro instead of Bitcoin.

https://www.hirocoin.org/forum/index.php?topic=108.0

The idea is that since it's less profitable to mine Hiro directly than it is to mine bitcoin (via a switchpool like WafflePool) and trade it for Hiro, they would create a switchpool that saves you some work and pays out in Hiro directly. I'm not sure if that's why the price of Hiro doubled overnight, but it's a possiblity.

Anyway, with the outrageous amount of hashpower pointed at DarkCoin, I've been mining switchpools and trading BTC for DRK for several weeks now, and I'm sure a lot of you are doing the same. Maybe we could take a page from Hiro's book and make a switchpool that pays out in Darkcoin - DarkWaffle! I'd definitely mine that.
 

yidakee

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Understandable, but doesn't that defeat the purpose of strengthening the DRK network?
 

LazarusLong10

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Right now the strength of the network comes from people mining in spite of the fact that it isn't profitable - in other words, a sort of charity. IMO, there's an inherant insecurity when the interests of the network aren't aligned with the interests of the miners. This would drive up the price of DRK and possibly reduce the hash power going to the DRK network, both of which would make mining directly more profitable. The hash power to the network might decrease somewhat, but it would also no longer be as dependent on charity and speculation. Just my theory...
 

TanteStefana

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It would be great, however I'm not a programmer and couldn't do it if I wanted to. It would take someone to step up and do it?
 

Lzeppelin

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This could do really strange things though. Darkcoin's reward depends on difficulty so if most people stopped mining drk directly the ones who stayed mining would get a much bigger reward. Personally I think we'd reach an equilibrium eventually where it'd be just as cost effective to mine either way.

Edit: Basically what LazarusLong10 said...I should learn to read before commenting :(
 
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LimLims

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I can only see good things from a multipool that pays out in DRK. It would create a dynamic where a proportion of miners move to the scrypt pool until darkcoin diff drops enough for it to become profitable to mine directly, and an equilibrium would form.

- More people getting invested in DRK (particularly the group who are interested in mining it but aren't because it's less profitable)
- DRK profitability being pulled into line with scrypt
- Constant upwards buying pressure on DRK exchanges due to automated trades from the pool
 

LazarusLong10

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Mar 26, 2014
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It would be great, however I'm not a programmer and couldn't do it if I wanted to. It would take someone to step up and do it?
I know, I'm an OK self-taught programmer, but I don't know the first thing about how to set up and maintain a huge stratum server (or any kind of server, for that matter). You'd need to write a switching algorithm (maybe not so hard), automate three-way trades (alt->btc->drk) and payouts, maintain a database of user accounts/balances, plus build in security against thieves and DDoS attacks. Way over my head...

Although now that I think of it, it does sound like a lot of fun, so if someone does decide to try it they should let me know so I can be a pain in the ass, err, I mean help!
 

yidakee

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I still don't get it. As I see it, multipool mining equilibrium does no merit to the devs. You're just thinking profits. Cryptos should rise and fall due to the merit in the innovation and use. Be it DRK or Doge. A few ideas considering multipool

1 - meme coins could rise due to huge marketing investment
2 - technically superior innovative useful coin get overshadowed in investment because critical mass is way less than meme counterpart - lets face it - memes are fun.

Hash power hopping to grab the profitability masks the real interest in the coin. It could seriously slow the rise of DRK. X11 multipool? Who the hell mines QBC after one of the most hilarious launches in history? Yet a multipool would only be supporting an incompetent developer (if price maintained, some freak wall, etc), though the official website does look spanking I'll give it to him... or HiIRO or whatever.

It sort of eliminates natural selection from the ecosystem. Plus, lowering the hash rate and pumping back DRK into the system inflates the currency, right? Say a scrypt pool that pays out in DRK... that means the scrypt network gets stronger, DRK weaker, price gets pumped no doubt as those miners want to cash out, probably back into BTC. Essencially creating a huge bubble in the DRK real price. What happens when scrypt fails (as it is!) - bam, hash power flood back into DRK, diff spike, massive price skyrocket, people dump, price plummets, troll and scammer city, miners get shut off, master nodes unprofitable... it just get weird in my head.

I'm no expert, loved the multi pools when I jumped into mining of course. Now its just p2p. I believe is the only answer. Multipools can manipulate markets and your hash power and/or your earnings.

Think decentralisation. Think freedom. A strong networks are made from like minded peers. Not central hash funnels that do what they like with your handed-over-powers
 
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LimLims

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I think you're thinking about this from a miner's perspective, where hashrate of the network correlates with interest. Far more people are watching the price, so if popularity & price rises due to a multipool that pays out in DRK, any drop in hashrate will have a negligible effect on public perception. And the flow-on effect of price & adoption increasing will be an overall increase in hashrate that should more than offset any expected decrease from indirect mining.
 

yidakee

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hmm... makes perfect sense actually. thanks for that!
 

Lzeppelin

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Actually the idea originated with blackcoin since it stopped being able to mined directly.
 

vertoe

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From a miners perspective its just plain awesome:
  1. I can use my scrypt asics to mine something (i dont care what as long as it pays DRK) - win
  2. The DRK diff drops and I can use my GPUs and CPUs to mine even more DRK - win
  3. The DRK price increases as the multipool keeps buying DRK - win
win-win-win!

And dont say the DRK network will drop to 0, there are too many GPUs out there which wont even consider switching back to scrypt.
God damn, what is taking so long to put together a multipool... :D
 
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LazarusLong10

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Mar 26, 2014
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I just contacted wafflepool.com about maybe making the payout currency user definable.

Edit: got a reply "Please check the forum thread, there is an ongoing discussion about this."

For anyone interested thread is here https://bitcointalk.org/index.php?topic=433634.4120
I just read the last 6 pages of the thread and didn't see any mention about this. Maybe there would be more interest from another switch pool?