Palnet Quick Tip: Hi-Ho The Cherry-O A Mining We will go.
Oh boy... This one will either excite people or make people angry. Please send any positive messages at me and the angry ones can go to @crimsonclad since she blames me for everything and it's time I get even.
The biggest question we seem to receive is:
HEY, WHAT ARE THESE MINERS!! WHY ARE THE MINERS NOT MAKING ME DRIVE 5 LAMBOS AND A DELOREAN?!
First thing I want you to understand is that these miners are LONG TERM ideas. They are NOT going to just churn out Palcoin like it's a water faucet. They will however, in time, be a nice passive stream of Palcoin.
There are two versions
PALM which "mines" at 1X (100k possible to purchase)
And PALMM which mines at 4X (10k possible to purchase)
The more miners you have, the better chance you have at getting a Palcoin when it distributes.
There is no exact guarantee that there will be a constant timed flow for your particular miner.
Again, think LONG TERM and passive.
If you've ever done hardware mining, then the idea is quite similar of trying to solve a block before someone else does. That time depends on how much hash power you have (or in this case, miners). You will get a "block" here and there, and in the long run you will end up ahead.
I'm not sure I have expressed LONG TERM enough. So I will do it again. LONG TERM!
This chart shows the POM pool for each year. So this year there are 210,000 Palcoins to be mined, next year there will be 189,000, etc. Notice that we have it broken down by years. Again, back to the long term theme I keep harping on.
Now, those will be divided by the amount of miners that have been sold, and if you buy several, your chances of getting the Palcoin increases.
Now, for the really confusing part. As of right now, there is not a way to determine what is coming from mining or what shows up as rewards. This is something all of us understand is an issue and a BIG point of confusion. It is working as we have several people get their mined coins well before payouts went live.
I can tell you that it is 100% on the list of things we need fixed.
Clear as mud, huh?
The bottom line is this. If you're looking for long term and passive, miners may be for you. If you're looking for the quick and easy? Well, this is not it.
If you have any questions, drop by the discord found at minnowpond.org and ask away in the help section. Thank you for not killing me.
To listen to the audio version of this article click on the play image.
Brought to you by @tts. If you find it useful please consider upvoting this reply.
Digital tokens that mine other digital tokens!? That's too good to be true, right!? 😉
It almost seems that way.
Thank you so much for this post :) :) This definitely answers my question :) :) :) Now it's clearer to me. Correct my math if I'm wrong. So this year there's a total of 210k Pal that will be available for miners. 1 year = 365 so 210k / 365 = 575.34 Pal and there's 24 hours in 1 day so in an hour rate, there's approx 23.9 Pal that will be awarded to the lucky miners. Is my understanding correct or I'm missing something? :) :)
I believe that is as close to correct as I can confirm until I hear differently.
Having the ability to see rewards/ miner split when collecting will be pretty awesome. Almost at 50 miners myself and honestly I prob am going to pick up another 50 here by the end of next month if not sooner. First movers advantage maybe? ;)
I have a feeling that the miner sales will slow significantly, so yeah, you may be ahead of the curve.
Definitely you have an advantage @bitcoinflood
I did buy 1 PALMM, I'm looking to get some more soon :)
@swelker101, This effort is appreciable because definitely still there are many questions and confusion about the PALNET Ecosystem and specially about the Miners. In my opinion Long Term Wins. Stay blessed.
Posted using Partiko Android
Good post!
(Dear swelker101! I have small gift for you- your portrait. Hope, you like it;)
Uhuh it is clear as mud Boss @swelker101 :D
Miners are for a long-term investment but if you do it with PALM and PALMM you are getting a very good deal out of it in terms of at least you are not getting to lose your miners unless you sell them ;)
Yes, but the price may also fall on miners - what will come out of this is unknown - But I will risk
@cryptopie
Someone get my angry mob and pitch fork stat! Time to take this clown down lol! I love how you emphasis long term and I’m also sad that you have to emphasis it!
Support the network or not it’s your choice but stop blaming steem and Pal because you not lambo living!
Posted using Partiko iOS
So i need to write more Articles , because i cant BUY a miner... i really hope for everyone who buys a mining licence he get some nice income ...
Its not me, and I dont blame anymone ;)
So this is a maximum of 140k effective total miners competing for a maximum of 210k tokens per year, a floor of 1.5 PAL income per year assuming distribution normalizes to a uniform curve over time.
So you're selling miners for how much? Only 10 PAL each to be competitive with staking SP and leasing through dlease.io? Only 8 PAL each to be competitive with delegations to @tipu or @steembasicincome?
Oh, but the maximum number of miners issues hasn't been reached yet, so rewards are artificially high now, but will drop over time as the maximum is approached.
Tell me again how this is a long term investment?
Edit, just realized I calculated floor return using Max instead of min, and actual for is <1 PAL per year several years in before going up again. Point still stands... Your staking apr is benchmarked against other dpos staking systems, not against steem returns, which are high because of steem existential risks.
Your pricing implicitly assumes that PAL has less than 1/3 the long term price risk that STEEM had. So you really believe that?
Would love to see a reply @swelker101. I'm by no means an expert here, but @josephsavage has a point. Or are we missing something?
The logic behind this math doesn't work for a few reasons. First, the only thing with an intended cap is PALMM, not PALM. Second, the white paper didn't assume or imply anything other than 10% of inflation would be split among the miners, that there was a hard limit on how many PALMM would exist, and it set the price for the miners. Third, it assumes that people are going to continue buying them to the point that they are no longer worthwhile, which is subjective to each person.
A quick search of "mining rig" on Ebay will show that there are plenty of people that bought or built hardware mining rigs and didn't think the ROI was worthwhile so they dumped them. These tokenized contracts are no different, except they don't require the knowledge to run a miner or have electricity fees.
The white paper set a basic price for the miners and if people want to pay that then they can, just like they can sell them for .000001 STEEMP cheaper than the set price that is locked into the white paper if they no longer want them. The free market is fully intended to take care of itself and this example is no different.
If people think the ROI sucks, then they should either not buy them or sell them. If people want to take advantage of inflated rewards because there isn't much competition, then they are free to do so. It's all voluntary and ultimately some people will speculate more heavily than others and some don't mind waiting years for a possible ROI.
Everything you just said adds up to "PALMM was deliberately sold at a low ROI because the market will bear the price."
Which is fine, that's your business.
Just don't pretend it's such a great long term investment when apr is predicted to fall over time unless the market corrects the price and somebody dumps their units at heavy discount.
I've been beating this drum in the discord for the past week. The numbers just don't make sense.
"It's a long term investment"
It's nowhere near the long term investment as buying the same stake in PAL and curating.
Here's a pretty chart for you:
PAL has 10% inflation and 10% of that goes to the so-called 'miners'.
So each year 1% of $2146081 ($21460) is going to miners valued at $1556483, for an expected annual return of 1.38%
Now, PALM and PALMM are expected to have a price ceiling, while PAL is expected to appreciate, so the actual expected return is higher... but if your real return comes from PAL price appreciation, why not just buy PAL? Especially since curation returns are significantly higher than mining returns...
I really wish I could short into this market and help it get some real price discovery.
Especially when curating is returning 60% in PAL terms at the moment.
I'm wondering why this has not been addressed yet. We need clearer explanations before making this so called long term investments..
Well the roi is like 980 days of a miner. If you bought an eng miner.
Posted using Partiko Android
Is there a mining guide anywhere?
My question is since you use the same community as Steem, could there be the 2 of you in a few years ? As you are so similar...
Posted using Partiko iOS
Thanks for the explanation.
At least now I know I’m not the only one confused :)
So we definitely need some things addressed & fixed:
Well, I got a nice pile of the palmm miners. We shall see how it goes!
I think it's going to be confusing for anyone that hasn't been mining for a while or doesn't really want to learn about it. There's plenty of hardware mining that doesn't cover the cost of electricity that currently exist, but people do it because they believe in the projects. Personally I'm not the biggest fan of "digital mining" or "cloud mining," but it's really no different than any other form of mining. There's a lot of luck involved.
So you're saying this is just a gambling toy, not an investment?
No, he said it's just like mining with real hardware minus the electricity portion.
So they take PALMM proceeds and buy actual servers with it that the SCOTbot iteration for PALnet runs on?
Because otherwise, no.