BurnKoin.com is now LIVE on Koinos test net!
Burn Koin is the first Proof of Burn mining pool that allows $KOIN token holders to participate in block production, network security and governance without the need to operate their own node.
The pool charges a single simple operators fee of 5% of the depositor’s rewards. There are otherwise no hidden deposit or withdraw fees or locked funds.
Depositors can earn block production rewards proportionate to the amount of KOIN they deposit in relation to pool, minus the operator’s fee. All rewards are issued by the Koinos Blockchain at approximately 4% APY (assuming ideal state*).
*ideal state assumes 50% of all KOIN has been burned for VHP and also actively used to produce blocks*
To participate in the Burn Koin mining pool, depositors only need to perform 2 simple steps:
- Deposit KOIN and receive pooled VHP (pVHP), the decentralized liquidity token for the Burn Koin mining pool.
- Withdraw mining rewards whenever (rewards available as KOIN or VHP).
To start, visit BurnKoin.com and click “ Go to dashboard” to sign in with Kondor Wallet, available as a chrome extension.
The Burn Koin Dashboard
After connecting a wallet, the user will be presented with a dashboard that shows several pieces of important information including the connected wallet and the pool’s KOIN and VHP balances. Additionally, any governance proposals that are active will be displayed at the bottom of the dashboard. We’ll go over each section briefly to help you navigate this page.
Identify your wallet and RPC node
At the top of the dashboard page is the “connected as ….” panel which displays the current connected wallet. Depositors will need to use Kondor wallet to interact with this field.
To the right of the address is the RPC end point which is where the blockchain data is pulled from. By default, https:://api.koinosblocks.com is used, however you can enter any valid RPC node you wish.
The official RPC node from Koinos Group is https:://api.koinos.io, however for test net only, we recommend using koinosblocks.com for stability.
Pool Summary
The second panel is the Pool Summary. This panel shows the connected wallet’s pVHP balance and how much it is worth in KOIN or VHP.
pVHP is Burn Koin’s liquidity token and is used for tracking the claim value of the mining pool’s rewards. Anyone holding pVHP may redeem it’s equivalent value in KOIN (as it becomes available) or VHP at any time with zero penalties or hidden cost.
Since pVHP is a decentralized token backed by the pool’s treasury of KOIN and VHP, users can use pVHP for DeFi opportunities to generate additional yields that would otherwise not be available to solo miners.
Your Wallet
Next is the “Your Wallet” panel which simply displays the balance of KOIN or VHP within the connected wallet. The mining pool treats VHP and KOIN as equals in value, therefore depositors can deposit either, or a combination of both.
To make a deposit, simply click “Deposit KOIN” or “Deposit VHP” and a popup will appear with a field to input the amount of the deposit. The user simply needs to sign and submit the transaction to the Koinos Blockchain with Kondor.
Pool Treasury
The pool treasury panel displays two very important pieces of information, the total amount of KOIN and VHP available at that time, separately. These two values fluctuate based on the following actions:
- The Koinos blockchain will mint and issue rewards to mining nodes with new KOIN for each block that is produced. This will add to the pool’s KOIN treasury.
- Producing blocks consumes VHP which will decrease the pool’s VHP treasury.
- Burn Koin regularly reburns (once a day or more) KOIN in treasury to maintain steady VHP levels. This reduces KOIN and increases VHP in the Pool’s treasury.
- Depositors are able to deposit as much KOIN or VHP as they wish.
- At anytime, pVHP token holders may exercise their claim on the Pool’s KOIN or VHP balances based on how much pVHP they hold. This reduces KOIN or VHP in the Pool’s treasury.
The net effect of the above actions are shown live on the Pool Treasury Panel and should be used to help depositors understand the state of the mining pool at at given moment.
Additionally, since KOIN in the pool’s treasury is re-burned on a regular basis, depositors may need to perform several withdraws to receive the full KOIN value of their pVHP. Alternatively, users may withdraw the full value of their pVHP tokens as VHP at any time and swap VHP to KOIN with a decentralized exchange such as KoinDX.
Governance Proposals
Lastly, the governance panel (coming soon) will display governance proposals that Burn Koin is actively voting in. This panel will be updated with more information in the future. Burn Koin will announce their position for any governance proposal ahead of the voting period to give depositors the information they need to decide if they wish to delegate their vote to Burn Koin.
Burn Koin believes decentralization is a vital aspect of blockchain and will never restrict a depositor's access to their voting rights. pVHP token holders are free to withdraw 100% of their claim as VHP and vote in the manner they see fit with absolutely zero penalties.
Conclusion
We hope you choose Burn Koin as your preferred Koinos mining pool. We always encourage token holders to run their own nodes to further decentralization of the Koinos Network and will always be here to offer our services as a mining pool whenever you choose to participate. No hard feelings if you leave either!
Burn Koin was created by Software Developer Luke M. Willis (twitter: @lukemwillis) and Professional Engineer Kui X. He (twitter @kuixihe ), two long standing members of the Koinos community.
Quick Fact Guide:
- Burn Koin is developed and operated by Luke M. Willis (twitter: @lukemwillis) and Kui X. He (twitter @Kuixihe).
- Depositors pay a simple 5% fee on rewards they earn.
- Depositors may earn up to 4% APY (or more) of their deposits depending on factors outside of the Burn Koin’s control.
- pVHP is a tradeable liquidity token that can be used to earn additional yield in DeFi applications.
Learn more at www.burnkoin.com