Giga Watt to Declare Bankruptcy

Mining company ows million of dollars to investors
21 November 2018   882

The American mining company Giga Watt filed bankruptcy documents in a court of the Eastern District of Washington, CoinDesk reports.

Giga Watt's lenders include approximately 20 companies, including utilities and electricity providers. The total liabilities range from 10 to 50 million US dollars. At the same time, the company's assets are estimated at only $ 50 thousand.

According to Crypto News, in August 2018, the company reduced its staff from 63 to 16.

Giga Watt was founded by bitcoin miner Dave Carlson. In May, the company held a tokensale during which it managed to raise $ 22 million.

The company raised funds for the launch of mining and the creation of a vault for cryptocurrency. In exchange for the investment, investors should have received either Giga Watt tokens or mining equipment. Tokens would give investors exclusive rights to use the company's premises without a lease for 50 years.

However, at the beginning of this year, it became known that a class action was filed against Giga Watt, in which the company was accused of conducting an unregistered offer of securities. Also, the lawsuit states that the construction deadlines were not met, and promises to refund the funds were not fulfilled.

Buterin to Propose to Increase PoS-Validators Reward

According to Vitalik proposal, if PoS-validators, for example, validate 1,000,000 ETH, then the annual yield will be 18.1%
23 April 2019   96

The creator of Ethereum, Vitalik Buterin, published on GitHub a proposal on changing the reward scheme for validators after the transition of ETH to the Proof-of-Stake consensus mechanism (PoS).

According to the formula proposed by Buterin, if PoS-validators, for example, validate 1,000,000 ETH, then the annual yield will be 18.1%.

Buterin PoS Validators Reward Proposal
Buterin PoS Validators Reward Proposal

The more assets are fixed for validation, the lower the interest rate. So, 134 217 728 ETH will bring cryptoinvestors only 1.56% per annum. At the same time, the maximum annual emission volume will be 2,097,152 ETH.

Considering that the current volume of Ethereum's market offer is 105,777,585 ETH, this offer is focused on the medium and long term. Buterin also clarified that the profitability indicators are shown without taking into account proceeds from transaction fees. Consequently, the actual income of validators can be several percent higher than the values ​​indicated in the table.

According to Justin Drake, a researcher at the Ethereum Foundation, if after implementing PoS 32 million ETH will be allocated for stacking, the income of validators will be 3.2% per annum. At the same time, the annual emission indicator will be 1% (for comparison, the current indicator of Bitcoin inflation is 3.94%).

In this case, Drake notes that after the activation of EIP 1559 of the funds collected in the form of commissions, will be destroyed. Consequently, with an average gas consumption of each shard of 1000 ETH per year, inflation will drop to 0.5%.

Users left generally positive comments on the offer. However, some of them expressed fears that in the new conditions the exchange may receive significant advantages, which will be able to do stacking at the expense of clients.