Dash Mining Club // pre-pre proposal

Icebucket

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Apr 11, 2014
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I got inspired by https://bitclub.io to begin working towards creating similar project centered around Dash mining.

I live in Iceland where most of the big mining operations are based due to cheap electricity cost, practically free cooling and one of the fastest internet connection in the world. A perfect location for a Dash mining center to be located.

The main idea is to make it affordable and accessible for everyone to own a % in mining equipment. That will pay dividends as long as the hardware lasts.This model has proven it self for bitclub as they are now one of the largest miners in BTC. And Im shure Dash Mining Club will be able to replicate that success.

Im looking for people that are interested in joining this venture, be it funding or technical knowledge.
There needs to be a foundation that we build on, there is the development of back end technology, legal framework and so on that will need to be done before it is possible to make this accessible to the masses.

To make that happen there needs to be a core team that will collectively order the first batch of miners and cover the first 3 months of operation at least.

Long time goal (4 years+) will be to build our own data center

There might be a proposal proposed after we have a good foundation of participants. It will be fair and ultimately create a revenue for the Mn network.

But at this point Im looking for people that are interested in creating and helping with laying the foundation of Dash Mining Club.

Would love to know what you folks think of this endeavor
 
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Icebucket

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The interview I mentioned in the beginning of last post is this one

Joby is one of the original founders of bitclub and he describes his operation in detail in this interview.


Here is another one where he explains how bitclub works


Note that Bitclub model will just provide a framework to build upon. Dash Mining Club will likely be structured a little differently.
 
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Icebucket

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Will this be a centralized hosting? Cloud mining operation?
The mining operation will be under one roof of a tier 1 Datacenter, so it will be centralized in that way. There is always a option of distributing the rack space among different DC (we have number of them here in Iceland) if centralization is of concern
 

Icebucket

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collateralized mining is relevant if one is thinking about stuff like this.

https://www.dash.org/forum/threads/collateralized-mining-eta.15925/
Yes, Collateralized mining is one of the factors that will need to be taken in to account.
Thanks for pointing that out.

From my understanding is collateralized mining planed to make miners more invested in the prosperity of the DASH network, that is essentially what this mining club is about. But still needs to be considered into the framework.
 
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Icebucket

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Some alterations from the bitclub model I would like to suggest:

  • They have a member fee, dont think that will be necessary. If you own a % in mining hardware you are a member.
  • They have a contract for 1000 days if you buy mining hardware, In my opinion It is more fair to own that hardware until it no longer becomes profitable to run or brakes down.
  • Apparently they have different prize point for joining a particular pool, dont see the need for that, hashing power would be distributed evenly across pools should one become to big or in any way a threat to the network.
Feel free to come up with other suggestions of how you would improve bitclubs system and adapt it to Dash network.
 
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Vedran Yoweri

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Apr 29, 2015
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From my understanding is collateralized mining planed to make miners more invested in the prosperity of the DASH network, that is essentially what this mining club is about.
Pretty sure it's a performance thing. How will your miner not disrupt the network if it cannot handle 10MB, 200MB blocks at fiber network speed?
 

Icebucket

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Apr 11, 2014
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Pretty sure it's a performance thing. How will your miner not disrupt the network if it cannot handle 10MB, 200MB blocks at fiber network speed?
If the mining hardware will at some point not meet dash standard to process blocks they would be used solely to harvest other x11 coins and exchange them for Dash. The goal is to be complementary to the network, not to disrupt it in any way.
 

Micheal Houvardas

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Aug 30, 2017
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I got inspired by https://bitclub.io to begin working towards creating similar project centered around Dash mining.

I live in Iceland where most of the big mining operations are based due to cheap electricity cost, practically free cooling and one of the fastest internet connection in the world. A perfect location for a Dash mining center to be located.

The main idea is to make it affordable and accessible for everyone to own a % in mining equipment. That will pay dividends as long as the hardware lasts.This model has proven it self for bitclub as they are now one of the largest miners in BTC. And Im shure Dash Mining Club will be able to replicate that success.

Im looking for people that are interested in joining this venture, be it funding or technical knowledge.
There needs to be a foundation that we build on, there is the development of back end technology, legal framework and so on that will need to be done before it is possible to make this accessible to the masses.

To make that happen there needs to be a core team that will collectively order the first batch of miners and cover the first 3 months of operation at least.

Long time goal (4 years+) will be to build our own data center

There might be a proposal proposed after we have a good foundation of participants. It will be fair and ultimately create a revenue for the Mn network.

But at this point Im looking for people that are interested in creating and helping with laying the foundation of Dash Mining Club.

Would love to know what you folks think of this endeavor
I would Like to be a part of something like that.
 
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Continuous

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Sep 24, 2017
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Take a look at the Giga Watt model.
They work with tokens (Watt-trading-token, WTT). Each WTT is the equivalent of 1 Watt of power.
So lets say you have a 1Megawatt facility, thats 1.000.000 Watt/WTT.
then say you have a miner of 1000W power, you need 1000WTT in order to host that miner in the facility.
(Gigawatt uses a 10% power margin though, so +10% of advertised power consumption)
So people who join your mining ''club'' will basicly own two things seperatly:
Their stake in the facility & their miners

Giga watt uses a ''renting'' system, where people who own stake(WTT) but no miners, can rent out their WTT to people who have miners but no stake.

You could build something like this using the Dash platform (will evolution provide for tokes that could do such a thing?), and make the facility Dash mining exclusive, then the network might be willing to subsidize this project. You can also add like a partnership with the Dashlab to test the mining hardware or something. You would still be a regular business in the end
 

Icebucket

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Apr 11, 2014
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I would Like to be a part of something like that.
I like that, I suspect there is real interest in the community for a venture like this one.
I created a slack channel just now for people interested #dashminingclub
on www.dashnation.slack.com I welcome everyone interested to join that channel.


Still feel free to post your ideas, comments or questions here the forum. :)
 
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Icebucket

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Apr 11, 2014
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Take a look at the Giga Watt model.
They work with tokens (Watt-trading-token, WTT). Each WTT is the equivalent of 1 Watt of power.
So lets say you have a 1Megawatt facility, thats 1.000.000 Watt/WTT.
then say you have a miner of 1000W power, you need 1000WTT in order to host that miner in the facility.
(Gigawatt uses a 10% power margin though, so +10% of advertised power consumption)
So people who join your mining ''club'' will basicly own two things seperatly:
Their stake in the facility & their miners

Giga watt uses a ''renting'' system, where people who own stake(WTT) but no miners, can rent out their WTT to people who have miners but no stake.

You could build something like this using the Dash platform (will evolution provide for tokes that could do such a thing?), and make the facility Dash mining exclusive, then the network might be willing to subsidize this project. You can also add like a partnership with the Dashlab to test the mining hardware or something. You would still be a regular business in the end
Have not checked out that token but I like your thinking, there are a number of tokens out there that are designed to make projects like this one run smoothly, would need to get some experts opinion on how to go about doing that.

The Idea was to have the club Dash exclusive, with a option to mine other coins to sell for dash if that becomes more profitable, so the network gains ether way.

I like your Idea of partnering up with DashLabs should they venture into building miners, Will ask them if its possible to preorder the first batch :)
 

akhavr

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Oct 11, 2014
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The mining operation will be under one roof of a tier 1 Datacenter, so it will be centralized in that way. There is always a option of distributing the rack space among different DC (we have number of them here in Iceland) if centralization is of concern
I'd say you'll have difficult time communicating differences wrt "cloud mining", which is almost always is a scam.
 

Continuous

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Sep 24, 2017
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I'd say you'll have difficult time communicating differences wrt "cloud mining", which is almost always is a scam.
I don't think that will be a problem. Building off on what i suggested:
First up, cloud mining is mining as a service. This is Facility as a service; people own their own miners as well their own spot in the facility.
You don't offer to mine for people, you offer a cheap source of energy and maintenance. This business does not get money upfront, it just takes a fee% from the mining revenue; ergo, there has to be mining done in order to get income.
It can also be completely transparent: We are building a 1 Mega watt facility (show permits etc.) and issue 1 mega watt of tokens, that way you can be sure its not a ponzi or fractional reserve mining
 
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Icebucket

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Apr 11, 2014
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Would love to hear from someone with programming skills how they would approach making something like this work.
there would need to be a mining pool that divides mined blocks according to % ownership in mining hardware.
One obvious flaw in that setup is that it would create allot of tx fee if it done for every block mined. So a solution might be to divide up the rewards on a weekly basis for example.

Not shure what the best way would be to group together funds to make a bulk order for new miners, would maybe just be simplest to have a merchant account.

@akhavr Im aware that most cloud mining schemes are a scam, Im trying to get people to work together to come up with a solution that is fair, transparent, will save dash miners money and make it accessible for people to run theyr shared miner, making it easy for people to get into mining essentially. If you have a idea of how that could be archived then please share your thoughts on that :)
 

Icebucket

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Apr 11, 2014
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Got a offer from one of the datacenters, they said that theyr facility is maxed out at the moment but are building another one that will be open for business in January at the earliest

Electricity is 65euro per KW
VPN is 7euro extra per miner per month
and initial setup per miner is 75 euro.

So if we say to begin with there would be
100 miners consuming 1200W each that translates to 7800 euros per month just in electricity.

If I would plug them in at my home it would be around 3000 euros cheaper, guess they make theyr money on up-selling the electricity.
 

Icebucket

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Apr 11, 2014
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Maybe building a co-op datacenter would be the way to go, that could save allot of money in the long run.