MinePlex Launches New Mining Algorithm – Plexus

Place/Date: Singapore - December 23rd, 2020 at 9:05 pm UTC · 3 min read
Source: MinePlex

MinePlex Launches New Mining Algorithm – Plexus

MinePlex, a developer of the mobile crypto bank, has announced the launch of the new mining algorithm of its token PLEX under the name Plexus that means “entwinement”. The MinePlex blockchain is built on the Tezos architecture, therefore the “entwinement” is based on the consensus algorithm LPoS – Liquid Proof of Stake, with MINE and PLEX being its basic tokens. It stands to mention that these tokens are inextricably intertwined with each other: it is impossible to generate blocks for mining PLEX without using the token MINE. That very principle has become the core in developing the Plexus algorithm.

The company representatives clarified:

“To be eligible for the stake of the PLEX token that is generated with every block, it is necessary to execute Plexus (entwinement) of the token MINE. The entwinement is akin to staking. But staking on the Liquid Proof-of-Stake (LPoS) algorithm implies the holding of tokens MINE. By contrast with the Delegated Proof-of-Stake (DPoS), the address itself is delegated, not the tokens. Therefore, holders always have access to their funds. They can use their funds at any time or change the delegate (Plexus Pool)”.

By contrast with traditional mining, the process of entwinement consists of cycles. That means that the rights for blocks’ creation and validation are distributed among Plexus Pools based on cycles, not on separate blocks. The full cycle of entwinement means the period of time from sending the MINE tokens for staking to receiving the first reward in the form of PLEX token. The period takes 14 cycles. If Plexus Pool has undistributed PLEX tokens, it can reward delegates at the moment of receiving tokens, in 9 cycles. The full cycle of entwinement concludes when the Plexus Pool is changed or when the address receives MINE tokens.

The lack of the volatility of the MINE’s price which now equals $0.01 and the non-inflationary nature of both tokens allow holders to get several benefits at once:

  • The PLEX-MINE exchange rate is calculated based on the complexity of the entwinement. It means that the fewer PLEX tokens are distributed for the MINE token the bigger is the PLEX’s price.
  • Since the price of the MINE token is constant, as a result of the lack of its volatility, the price of PLEX changes in a predictable and consistent way.
  • The distribution of the MINE tokens among 7 cycles allow holders to predict the exact mathematical price of the PLEX token one week in advance.
  • Irrespective of the MINE tokens staking, users will receive fixed reward ~ 20% monthly.

Please find detailed information on the Plexus algorithm here.