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Vikingchild

Should we stop large mining farms and if so how?

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Mining farms I firmly believe are bad for a coin in its infancy. A coin relies on miners to be able to spread the word and create hype. The more miners there are, the more people there are to spread the word about a coin. If we centralise the mining instead to large-scale farmers, it is unlikely to create as much hype and we may even discourage new miners to join, due to too high a difficulty level that is not inline with the value of the coin (I have personally witnessed people turning away from DNR for that specific reason).

We also run the risk of farmers dumping a large number of coins at once, thereby keeping the price of the coin down. When instead it is decentralised across a multitude of miners, this risk diminishes, as not all miners would want to dump for short term profit - some speculate at longer term pricing and also the number of coins they hold is much smaller than that of large-scale mining farms.

So with that in mind, I wanted to reach out to the community here and hear what your thoughts are on large mining farms, and most importantly to collect ideas on how we could potentially reduce, delay or completely remove large scale mining farms.

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I agree with this! Large mining farms on DNR with it being so young will be bad. Unfortunately I don't know of any way to prevent this from happening. I don't think any large farms are on DNR at the moment and hopefully it will stay that way until some time. If we can get DNR on a major exchange and bring in more small miners (couple of rigs per miner) then DNR will build up strong. Last thing we want now is for a large farm to jump on DNR then dump its coins on a regular basis. I've been getting more friends and small communities to jump on DNR and give it a try with most of them sticking at it. I also get them to keep the wallet open and running all the time, with the incentive of earning free (small amounts) of coins from staking. 

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Thanks,

Stu - (RecoStar)

Denarius Mod

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I believe they moved to silly coins like ChainCoing going milions of % overnight ;) DNR had them when the price spiked to 1.7 USD, but just for the short amount of time. Big farms are bad for any cryptocurrency outside of the Big 10 trully. Also it's very good that DNR is algo that doesn't have asics or could have in near future, IE: there were some scrypt algo coins popping in the last 2 months - who in his right mind would go mine those with gpus - they just went quick pump and dump cycle and now oscilate around my cats shit value ;)

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That's the main issue, is that when a farm jumps on a coin the hype increases its value, the farm mines loads of coins, dumps the coins for major profit, then goes and find another coin, leaving the coin it mined at a low value...

Yeah its good that DNR is ASIC resistant to stop like bit ant miner farms and such.

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Thanks,

Stu - (RecoStar)

Denarius Mod

denarius-dnr.png.c89033ca9f0500ec0bcdf83c7dbb6e27.png

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The idea of the blockchain is, that it is censorship resistant.. That also means that you can not limit who mines the coin, because in the grand scheme of things, that could be bad..

Now, to combat large farms, @Carsen could make the reward for solving a block go down as the hashrate/difficulty goes up, but I am not entirely sure that this would actually help, since farms would still mine the majority of the blocks and everybody would get less reward for solving a block, so price would probably go up since the breakeven price would go up..

This would be great for early investors, but would not really make a difference for people mining the coin continuosly I think. Also, to make this change, a hardfork would probably be necessary.

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Well basically it's capped by the algo dynamic difficulty, hashrate rises so does the difficulty - meaning you mine the same more or less per time spent not per hashpower in terms of blocks mined. Basically when the hashrate is smaller, the smaller miners might earn a bit more, but that's because of pool shares being given per hashrate

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