Comment on page
MNB Burning & Staking
GPUs have three main attributes: hash rate, durability and efficiency. Base GPUs start with standard durability and efficiency levels and users can upgrade them by spending MNB, (all MNB spent on upgrades is burned). Upgrades are applied with a variable duration and the chances of an upgrade being applied permanently are low. This results in frequent upgrades and frequent upgrades result in more MNB being burned, reducing the total supply. GPUs need repairing, the frequency is determined using the durability attribute. With standard level durability, the GPU must be repaired every 14 days. Repair costs equate to 3 days’ worth of MNB earnings for that specific GPU. If a GPU has level 1 durability then the repair frequency is reduced to once per month. With an upgrade to level 2, the repair frequency is reduced to once per 3-month period. With an upgrade to level 3, the repair frequency is reduced to once per 6-month period. Finally, with an upgrade to level 4, the repair frequency is reduced to once per 12-month period. All MNB spent on power costs minus a 1% fee are burned, once again decreasing the total supply. Power is used to mine MNB. Power costs are determined by the GPUs efficiency attribute and charged on a ‘per block’ basis & are relative to the amount of MNB mined. For example, if a miner was rewarded 1000 MNB in the last block and the GPU had base-level efficiency (50% then the user would pay 500 MNB in power costs, if the GPU has level 1 efficiency then the power costs are reduced to 25%, with an upgrade to level 2, the power costs are reduced to 20%, with an upgrade to level 3, the power costs are reduced to 15%, with an upgrade to level 4, the power costs are reduced to 10%. All MNB spent on power costs minus a 1% fee are burned, yet again reducing the total supply. Users can overclock or boost their entire deployment of GPUs by staking a percentage of the MNB they mine. There are 4 overclock settings that increase the users' total hash rate. Anywhere from 12.5% - 50% of mined MNB coins can be staked, resulting in hash rate increases of up to 100% for all mining rigs. The staked MNB coins are 'locked' during the overclock period which helps to regulate the ‘free’ circulating supply of MNB. The entire ecosystem will be periodically assessed and re-balanced if required by means of tweaks to existing features or the implementation of new features.