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GoMining Token: A Simple Approach to Cryptocurrency Mining

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by Andrey Sergeenkov · 4 min read
GoMining Token: A Simple Approach to Cryptocurrency Mining
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Token backed by real, constantly growing assets with daily income paid to its owner.

Over 80% of the entire Bitcoin mining operation is dominated by 10 mining pools, churning out billions of hash output by the second, with massive pools of computing power.

This type of activity makes it impossible for small-scale mining operations to participate profitably from the Bitcoin mining operation. At best, with the latest ASIC machine, worth over $10k the best one can do is join a mining pool to break even with a profit.

This is removing the cost and knowledge of maintaining the operations of an ASIC device. GoMining is presenting an alternative approach to the cost and technical challenge of investing in cryptocurrency mining.

Like stocks represent a company’s share, the GoMining token (GMT). represents every piece of mining equipment associated with the distributed GoMining data center.

With this strategy, GoMining allows anyone to get into the mining business without needing to set up a mining rig. How this happens is by purchasing the GMT token and you have a share of the GoMining data center as well as profits distributed through token burns.

About GoMining

GoMining is a cryptocurrency mining company with data centers located across the globe. Founded in 2017,  by April of 2021, the GoMining data centers are collectively consuming over 200 MW of electricity.

Cleaning Energy Usage

With some commitment to reducing the overall carbon footprint associated with Bitcoin mining, the company uses renewable energy sources for 50% of its electricity consumption, with promises of improving on its clean energy usage.

GMT Token

The GMT, the native GoMining token, is an ERC 20 token. As stated earlier the GMT token is backed by GoMining data center. Hence, new tokens are minted with every bit of expansion in the GoMining data centers.

In other words, with the purchase of new mining equipment new GMTs are minted. This makes the GMT fully backed by actual working rigs in the GMT mining farm distributed across the globe.

Token Burning

The main distinctive feature of GMT is that it grows. And not only the price of the token is growing, but also the income in bitcoins. After the additional issue, the team burns 20%-90% of issued tokens and redistributes the released capacity between other tokens. As a result, the volume of token supply increases, which leads to an increase in income. Simply meaning that each GMT has more computing power to mine BTC. The burning process is split in across 3 possible choices, depending on the market sentiment.

Bearing Market

During a bearing phase, the GMT burn sits somewhere between 20-60% of every new mint. In other words, with every new creation of GMT  in this type of market situation, 20-60% of the minted volume is sent out of circulation.

The exact figures of what is burned, however, is determined by the GoMining management. And it is done directly from the company’s GMT purse.

Bullish Market

During growing trends the company burns 60-100% of GMT’s with each additional issue GMT. So with the minting of new tokens, during an upward market trend, 60-100% of company’s GMT holding is burnt out of circulation.

Again the precise figures are determined by the company as it sees fit. However, like earlier mentioned it sits between 60-100% for bullish market phases.

Stable Market

In periods where prices are relatively stable, with a stable (or with insignificant dynamics) price of world cryptocurrencies, the company burns 40-60% of GMT’s with each additional issued GMT.

So with the minting of new tokens, during a stable market trend, 40-60% of the company’s GMT holding is burnt out of circulation.

Conclusion

All of this supply plan will help with profit making for the long term for holders of GMT. With an induced shrinkage in supply, the deflationary effect allows for profit just for holding the GMT token.

Finally, GoMining is a great option for anyone looking to get into cryptocurrency mining without the capital for running a huge mining data center or the technological know-how to handle a such data centers.

Guest Posts
Kseniia Klichova
Author: Andrey Sergeenkov

Founder and editor at BTC PEERS. Andrey writes about financial experiments, DeFi, cryptocurrency, and blockchain.

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