Quebec is ready to reduce the cost of electricity for miners

Bitcoin miners have been attracted to Quebec by appropriate conditions
20 November 2017   2125

Miners may obtain inexpensive electricity and cold winters for inexpensive cooling there.
Mr.Bertrand, a Canadian Entrepreneur runs 50 ASICS when each units coasts nearly 21$ per day while it produces nearly 470 $. 

Such abundance of electricity attracts big mining companies from China and Iceland.

Montreal state-owned enterprise called Hydro-Quebec realizes the distribution of power in Quebec. Because of 40% of all Canadian water resources are focused in Quebec, Hydro-Quebec is one of the most powerful producer of electricity in the world. Hydro-Quebec provides 4.55 $ per kWh. It also plans to provide additional 500 kWh per 2.58 $ by April 2018.

The Chinese Bitcoin miners began arriving to Quebec looking for alternative locations to place their operations and increase proceeds while Chinese government hunts down such initiatives.

These are really big players who contact us. The Bell Center in Montreal consumes the equivalent of 5 megawatts of power. The players who contact us [consume] from 5 megawatts to several hundred megawatts of power.

 

Eric Filion, Hydro-Quebec’s Vice President of Customers.

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   91

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.