Bitcoin mining is one of the most rewarding ways to participate in crypto, as it supports the network and earns Bitcoin through mining.
However, in today’s competitive landscape, it is incredibly hard to successfully mine a block, let alone build and maintain a Bitcoin node.
Despite this, GoMining is making Bitcoin mining more accessible for people across the globe who might not have the resources to build their own Bitcoin mining farm.
GoMining is a Bitcoin mining company whose core mission is to make Bitcoin mining easy and accessible for everyone. They do this through their flagship product, the GoMining NFT, which offers daily mining rewards. Through their tokens, GoMining has consistently provided stable mining rewards to stakeholders over the last two and a half years. The number continues to grow, with over 2,000 unique NFT holders increasing daily.
More recently, in collaboration with MMA legend Khabib Nurmagomedov, GoMining launched the Khabib NFT collection, a limited set of NFTs that have incredibly strong computing power and high energy efficiency.
Now, GoMining is elevating its branding and tokenomics. With its latest ticker update, GOMINING, the team made three major updates that will improve both the demand and supply mechanics of the token.
Let’s dive in and learn more about the new GOMINING token.
GOMINING is the official token for the GoMining ecosystem, and it is used both to pay for mining fees and for distributing rewards across the ecosystem. There are three main mechanics powering the GOMINING token:
- Discount Token Model: GoMining NFT holders can pay their mining fees using GOMINING and earn a 10% discount, lowering their costs and, subsequently, earning more Bitcoin per day.
- Burn & Mint Process: All GOMINING used for mining fees is first burned, and then, a smaller amount of newly minted GOMINING is redistributed to service providers, veGOMINING stakers, NFT holders, and the GoMining team.
- Vote-Escrow (ve) Tokenomics: Users can lock their GoMining tokens to the veGOMINING contract, acquire governance rights, and a share of rewards allocated to the governance participants.
The discount token model serves as a demand-side mechanic, increasing the utility of the GOMINING token for NFT holders.
Both the veTokenomics and the burn & mint process act as supply-side mechanics, working to limit the supply of GOMINING over time.
Moreover, GoMining uses veTokenomics with the aim to incentivize and maintain community governance within the larger GoMining ecosystem. Currently, voters will have access to how rewards are distributed to NFT holders.
There are a few benefits that come from the GOMINING’s new token mechanics:
- NFT holders can earn more Bitcoin per day with discounted mining fees;
- GOMINING holders can access 20% of all newly minted GOMINING through vote-escrow;
- NFT holders have a chance to earn 10% of all newly minted GOMINING;
- NFT holders can lock GOMINING tokens and vote in favor of distributing the additional 10% of tokens back to their NFTs.
Understanding Liquid Bitcoin Hashrate (LBH)
LBH is the idea of tokenizing hash power. More specifically, an LBH token is a token that represents a value of actual computing power utilized in Bitcoin mining.
For example, the GoMining NFT is the first successful implementation of LBH. GoMining tokenized their hash power and gave the world the opportunity to buy tokenized Bitcoin hashrate in the form of an NFT as an alternative to building a Bitcoin node.
LBH tokens are similar to tokenized versions of staked Ethereum (stETH, rETH, sfrxETH). Both can be bought and sold, with the GoMining NFT being accessible on GoMining’s NFT marketplace and staked Ethereum available on several liquid staking providers.
GoMining looks to take the LBH concept even further by working to make their NFTs available on all decentralized marketplaces. Moreover, they intend to make their NFTs DeFi friendly and create tools that allow them to be lent or collateralized for borrowing.
All of this will further enrich the usability of the GoMining NFT and the greater GoMining ecosystem.
How to Earn With GoMining
Now that we have a foundational understanding of the GoMining ecosystem, the GoMining NFT, and the GOMINING token, here are three ways to earn with GoMining:
- Buy a GoMining NFT: Each NFT has a daily bitcoin reward based on its computing power and energy efficiency, which means users can earn passively through their NFT.
- Lock GOMINING: Thanks to vote-escrow, all GOMINING holders that lock tokens will receive 20% of all newly minted tokens that come out of the burn & mint process.
- Vote on GOMINING Rewards Distribution: Voters will decide on how to distribute 10% of all newly minted tokens. They can be sent to solo miners, pool miners, or Greedy Machines holders. Voters can have the opportunity to vote in favor of sending rewards to their NFTs.
In total, GoMining is driving their mission to make bitcoin mining accessible for everyone thanks to efforts on their GoMining NFT and the new updates to the GOMINING token. This is a company everyone should keep their eye on moving into the next bull market.
For more information, take a look at the project’s website.