Mining Profitability Management Mechanics

The electricity cost for Minto mining data centers is a non-constant value, which strongly depends on the load in a particular power grid, varying on a day-to-day basis. Therefore, under unfavorable market conditions, a situation may arise when mining becomes unprofitable.

In order to avoid a negative financial result, the Minto protocol uses an intelligent algorithm for regulating mining equipment uptime, or so-called Low Power Mode (65% uptime). In this mode, when the load on the power grid is increased and the electricity cost is maximum, Minto puts the miners into idle mode according to the power grid schedule. E.g.:

The schedule of the power grid for the data center:

In this case, the chart of the project’s hashrate usage will look like this on the 30-minute and daily charts in the mining pool:

Minto hashrate in F2Pool, 30min:

Minto hashrate in F2Pool, 1D:

Thus, the average uptime of mining equipment can be about 65%, that is, miners work only during those hours when bitcoin mining is at a break-even point (65% of the total mining time). This approach allows the Minto project to maintain profitability even in the most unfavorable conditions at the cost of reducing revenue, on the one hand, and on the other - despite the decrease in mining rewards, to have a competitive advantage over most mining companies forced to work even at a loss, e.g., in order to make payments on loans used to purchase mining equipment.

Minto has a clear advantage over many, especially overdebted, mining companies, since it develops exclusively at the expense of its own funds and token sale revenue, and in addition, when the situation requires it, it can effectively manage its profitability using the Low Power Mode by periodically reducing electricity costs.

The decision to switch to the Low Power Mode is made by the Minto community through voting, where each $BTCMT is equal to one vote that can be cast in favor or against the decision being made. The Low Power Mode is introduced for a period of at least six months, since the price environment has significant inertia and cannot influence the situation in the short term.