A mining farm will be built at a nuclear power plant

The region’s government is planning it in Leningrad region in Russia by $ 82 million
30 November 2017   1602

In the Leningrad region, the first applicants for the launch of a mining farm for the production of cryptocurrency in the territory of Leningrad NPP in Sosnovy Bor appeared. The head of the region Alexander Drozdenko made an idea for the production of Russian cryptocurrency in the territory of the Leningrad nuclear power plant. The first sites of power units, which are now being prepared for decommissioning, will not be released until the end of 2018.

Information about the developers of cryptocurrencies and innovative startups was not disclosed at the request of lawyers of both sides. But preliminary calculations were announced: investments in equipment of the site for 10 thousand square meters. m, according to calculations of regional officials, will amount to about $ 82 million, the project should pay back in 18-20 months.

The economic block of administration has already developed a variant of tax and legal regulation of the first residents of the technopark. A key condition for the efficiency of the new cluster will be the cost of electricity no more than $ 0.05 per kWh. The first operation at the LNPP-2 power unit are planned to start in December, and the power engineering will go to full capacity next year. Farm equipment can become a ready infrastructure for other projects related to finance, artificial intelligence and neural networks.

In the other countries, for example Canada, the government supports mining startups. It provides discounts on electricity for miners.

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   97

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.