The Hashrate Tokenization Mechanics

A token can only be issued if equivalent Bitcoin mining power has been purchased by the Minto project or transferred to the project. Miners transfer mining power to the project in exchange for new $BTCMT issued. Any miner can transfer their mining power to the project if certain conditions are met: 1) proof of legality and ownership of the given mining capacity; 2) the equipment producing the mining capacity is in data centers that pass the project’s inspection; 3) the size of the transferred mining capacity is not less than 10 PH/s.

The Minto project can acquire mining capacity by raising capital or using retained earnings. Tokens issued as part of the project's acquisition of mining capacity will be owned by the project itself. As part of the transfer or acquisition of mining capacity, the number of TH/s units will be at least equal to the number of new tokens issued.

The project aims to flexibly maintain the best energy efficiency based on the current mining hardware capabilities, provided that the overall project energy efficiency cannot be higher than the baseline level of 60 W/TH. Equipment of any capacity can be installed in the Temporary Pool, except for outdated models with energy efficiency above 60 W/TH.

For example, the project has 55 PH/s of mining capacity with an energy efficiency of 60 W/TH. If 15 PH/s of mining capacity with the energy efficiency of 30 W/TH is added to the Temporary Pool, then the overall project energy efficiency will be about 53.5 W/TH.

Since the baseline level of 60 W/TH is not exceeded, the project, with the consent of the owners of the mining capacity, will move all of the capacity to the project Tokenized Pool and issue 1 $BTCMT for every 0.01 TH/s added. The project team will notify the token holders and the community about the successful hashrate addition on the website, blog and social networks.

The total number of tokens in circulation must generate at least that amount of mining power, the equivalent of which all tokens in circulation represent. As described later, our partner mining pool will act as an independent auditor and periodically publish reports confirming that $BTCMT is fully supplied with mining capacity. For example, if the blockchain shows that there are 1,500,000.00 tokens in circulation, then the project must have a Bitcoin mining capacity of at least 15,000.00 TH/s.