Virtual Mining

You can create your own supply of Shaolin by Creating Miners.

Virtual mining is the primary way to acquire Shaolin tokens, using ETH as the mining resource. The mining process is structured to reward longer mining durations with higher returns in Shaolin tokens.

Mining Details:

Mining Durations: Users can mine Shaolin for periods ranging from a min of 1 day to a max of 100 days in 2 different ways.

• Single Miner: An individual user participating in virtual mining, using ETH to mine SHAO tokens over a chosen time frame with an option of 1 to 100 power(cost) per miner.

• Batch of Miners: A group of individual mining instances, running concurrently with equal durations to maximize mining efficiency and potentially reduce Gwei when claiming the minted batches upon maturity.

Longer Mining Bonus: The protocol incentivizes longer mining periods by offering a "bonus" in Shaolin tokens to those who mine for extended durations, this bonus is known as the "S-Rank". The bonus sectionally scales with the length of the mining period, encouraging users to commit their SHAO tokens for longer durations to maximize their rewards.

S-Rank Mining Bonus Scale

• 0–25 days: +3%

• 26–50 days: +8%

• 51–75 days: +13%

• 76–100 days: +18%

Why does the S-Rank Bonus for Mining Scale in 4 Sections unlike the Structure of the Staking Bonus that Scales per Day?

Answer:

• Deflation Misalignment: Scaling bonuses for miners would contradict the deflationary goals by increasing token emissions, thereby diluting the scarcity the protocol is designed to maintain.

• Inflationary Pressure: A scaling system would lead to more tokens entering circulation, increasing supply and potentially devaluing the token in the long term.

• Imbalance in Participation: Rewarding higher S-rank miners disproportionately would discourage smaller miners, leading to centralization and reducing the ecosystem's decentralization Ethos.

• Sustainability Risk: Scaling bonuses could exhaust the mining reward pools faster, harming the longevity of the protocol's incentive mechanisms.

The mining bonus scaling is designed to reward users who commit to longer mining durations. The highest bonus of +18% for 76-100 days helps lock in token supply for an extended period, reducing the circulating supply during the crucial early phase of the protocol.

Since the supply of SHAO is Deflationary due to daily mining reductions, daily mining cost increases and additional burning mechanisms, it’s critical to incentivize users to participate in long-term mining. The gradual increase in rewards (from +3% to +18%) ensures that tokens are locked up in mining for longer periods, helping to manage the circulating supply and driving value appreciation over time.

By offering lower bonuses for shorter durations the system encourages a range of mining behavior. Some users may opt for short-term mining, while others commit to long-term mining to maximize bonuses.

- This balance is crucial in maintaining engagement across different types of participants while allowing the protocol to scale efficiently.

Deflation Approach

Starting Day 1 of Protocol:

• Maximum Tokens a Single Miner Can Mint on the First Day: 125,000 SHAO per max miner. Tokens decrease in each miner relative to the miner power. Miner Power can be set from 1 to 100.

• Daily Decrease of Tokens Available per Max Miner: 1% per day after day 1 of protocol.

• Daily Max Miner Cost Stays Equal: As tokens lessen per miner daily the cost increase stays the same to mine to account for affordability for the user.