It’s our pleasure to introduce MinePro, a tokenized Bitcoin mining protocol, launching on the Internet Computer. It harnesses a fully visible mining operation based in Alberta Canada, which has an enterprise level power cost of 2 cents per kWh. This is amongst the lowest costing solutions available globally, and it’s achieved through a private partnership with Logic Mining. The energy source is a fully dedicated flare gas operation, which converts wasted emissions into usable energy. This power rate is secured under contract for 5 years with 90% of all rewards being shared back to $MINE stakers. Decentralization will be at heart of MinePro, and through its partnership with Loka Mining (the very first decentralized mining pool on ICP) MinePro will distribute its rewards to the dao with no custody of rewards. The goal of this protocol is to bring sustainable, and scalable, RWA revenue to ICP ecosystem. This will not only come from the native operation, but through the vast hosting revenue capacity available.
Industry Problem:
Anyone who understands Bitcoin mining, knows that there is one variable which almost solely determines the profitability rate of a Bitcoin mining operation. Power cost. According to the global energy institute, the USA has an average cost of 15.45 cents per kWh, and the global average is 14 cents per kWh. In 2024, most retail mining operations are barely breaking even. When it comes to these retail operations, most, if not all, Bitcoin mining profit is eaten up by the power costs of running the mining machines (ASICS.)
Let’s break it down a little more in an example scenario:
Based on current rates, if you operate one Bitmain Antminer S21 200TH machine, this machine produces 0.00466211 BTC per month (equal to $283.27 USD at the time of writing). This Bitcoin yielded by the machine per month is yours. In your wallet, to spend. Now, where does this yield normally go for retail miners? POWER COST. Power is the most important overhead line item for mining Bitcoin, apart from purchasing the ASIC (mining machine.) For retail miners, power cost almost completely cancels out Bitcoin rewards, or puts them at a loss. detailed below:
One Bitmain Antminer S21 200TH machine operating with a power cost of 15.45 cents per KWH (US average) produces a loss of -$105.77 per month. (Confirmed by https://www.nicehash.com/)
This power cost is what most people have access to, and what makes mining next to impossible…
The Solution:
MinePro is here to bring an enterprise level solution to the ICP community.
One Bitmain Antminer S21 machine operating with a power cost of 2 cents per kWh produces a profit of 232.89 USD per month. (Confirmed by https://www.nicehash.com/) This power cost is what MinePro has access to under a 5 year contract.
MinePro will only use the most advanced and current machinery, ensuring profitability for the next 5 years. Each Bitmain Antminer S21 is sourced for the lowest price available. As you can see, Bitcoin mining quickly becomes an extremely lucrative venture if an individual, or company, is able to find a way to reduce their power cost through private power. That is exactly what Logic Mining offers, and what many large corporations have access to.
Logic Mining:
Logic Mining is a private, enterprise level, energy provider. Their primary purpose is to offer the energy via natural gas extraction, while the client is responsible for pipeline access and infrastructure. This type of solution is almost never available on a retail level for many factors:
-
Price barrier of entry – The infrastructure required to mine Bitcoin on an industrial scale costs millions, which is why it’s a select few corporations and investment groups who are doing it effectively. It’s simply not possible to receive a 2 cent per kWh energy cost without a large scale commitment, which is disappointing for retail investors.
-
Reliable location and infrastructure – Finding a solution within a cooperative and stable government is often times an insurmountable task. Underdeveloped countries offering cheap power can come with overwhelming government instability (I.E. Venezuela.) If you can manage to actually find a cooperative government, you’ll still have potential power grid, and tax uncertainty.
-
In depth mining knowledge – Having a comprehensive technical knowledge on how these operations function at scale is essential. There’s often a substantial learning curve when it comes to energy load access, and distribution. It takes in depth experts with experience in energy management at a large scale.
Through its partnership with MinePro, Logic Mining will grant access to it 10,000 Megawatt, 5000 acre facility, with the intention for MinePro to scale its Web3 tokenization efforts. MinePro with have unprecedented access to bring RWA revenue into the ICP ecosystem.
Tokenization:
The way MinePro gives access to Logic Mining’s private energy, is through a secure, seamless, and liquid, tokenized staking system. Our native token, $MINE solves multiple pain points for retail when it comes to Bitcoin mining. For most, Bitcoin mining is simply inaccessible, and not worth the upfront capital, time, or learning curve associated with setting up your own mining operation. $MINE as a tokenization model solves these issues by allowing any size holder to earn rewards from an industrial level operation. $MINE is sellable at any time and holds value through multiple mechanisms. It provides real ckBTC profit dividends to $MINE staked investors every month. Essentially, the $MINE product transforms any retail investor’s Bitcoin mining entry proposition.
From: Invest up to 7 figures up front, then hope you earn enough Bitcoin to cover this cost over several years.
To: Invest any amount into a liquid asset, which holds inherent value, has tremendous up-side potential, and is sellable at any time. Staking $MINE distributes monthly ckBTC mining profit dividends from an industrial scale mining facility with the highest profit rates in the industry. This is RWA tokenization at its best.
We have completely expedited and streamlined the Bitcoin mining experience for retail investors. Completely removing the capital barrier of entry, as well as condensing the task of recouping investment, which can take mere months.
How $MINE works:
In order to start earning a share of the protocol’s Bitcoin mining profits, holders must stake $MINE. Monthly ckBTC mining profits are distributed to $MINE staked investors on a monthly basis. These profits are paid out in ckBTC and are instantly claimable for each staked investor straight from our Dapp, fee free. After claiming their ckBTC dividend payment, investors can then decide to either buy more $MINE tokens and stake them (compound) or simply spend their ckBTC profit as they please.
Buy pressure mechanism:
$MINE is crafted to attract high buy pressure with limited sell pressure. This is achieved by only paying staking dividends in ckBTC, meaning the only time there is any sell pressure on $MINE is when an individual wants to stop receiving ckBTC dividends, and exit the protocol. When they exit, they’ll pay a small 2.5% sell tax, which in time, will make the $MINE token deflationary, as it has a fixed supply. As more and more ckBTC dividends are paid out (both through re-invested dividends/compounding, as well as new investors) we expect demand to grow substantially.
Elastic Staking Pool:
The staking pool was designed to encourage volume both in, and out of the ecosystem, being it’s hedged both ways.
Scenario #1 Increased demand:
If demand were to skyrocket, and the percentage of staked holders were to scale dramatically, the rewards would have to decrease (obviously because there’s more holders to share them with.) But by design, there would be far less $MINE in circulation which would increase the price exponentially. At that point holders could sell their tokens, leave the ecosystem with their $MINE profits, or stake for longer periods which will maximize reward multipliers.
Scenario #2 Decreased demand:
If demand were to decrease and (for example) 50% of holders were to exit the staking pool and sell the $MINE token, the staking rewards would now DOUBLE because of the decreased pool size.
The staking pool is designed to scale from not only the native $MINE infrastructure, but also from the expansive hosting initiative which we’ll get into in a bit.
Reward APR:
At the current rates, our APR on staked $MINE is roughly 8-15% per month paid in ckBTC. This is variable based on several factors:
- Current price of Bitcoin.
- Overclocking per month (usually 25% overclocking is normal.)
Remember, this is in addition to your $MINE principal that is staked and liquid. Meaning, you can unstake, and sell this principal (along with your rewarded ckBTC) at any time.
Staking Mechanics:
The staking pools will be selected based on time duration (much like the NNS.) The longer staked, the higher the multiplier. Unlike the NNS however, stakers will have the option to unstake early at a fee. Because the multipliers and rewards are significantly higher at longer duration, the fees will also be higher. This is necessary so that the holders can’t simply stake, absorb larger rewards, then leave at will.
The proposed durations are:
30 Days – 1x Multiplier, 10% unstake early fee.
90 Days – 2x Multiplier, 15% unstake early fee.
180 Days – 5x Multiplier, 20% unstake early fee.
1 Year – 10x Multiplier, 30% unstake early fee.
2 Year – 20x Multiplier, 50% unstake early fee.
5 Year – 50x Multiplier, 70% unstake early fee.
The unstake fee will be sent directly to the treasury controlled by the Dao.
Bitcoin Reward Distribution:
$MINE stakers – 90%
Team – 5%
Marketing Fund – 5%
We’d also like to propose an occasional NNS vote on Bitcoin reward allocations being used to continue infrastructure growth. The includes purchasing more miners and containers to further increase yield and operation.
Infrastructure:
The mining operation’s power source is a 10,000-Megawatt natural gas pipeline, which will feed directly into 5 proprietarily built containers. These containers each house up to 450 miners and are fitted with conversion generators that power the miners directly. This is a dedicated power source which makes reliability, effortless. The operation will have the latest in state of the art security, with 24 hour staff on location for maintenance. All initial infrastructure was directly funded by the team itself.
Hosting and bringing RWA to ICP:
We believe the RWA narrative is poised to be one of the next big drivers in the crypto space. More and more RWA assets are going to look to tokenize their organizations and assets. But what about already established projects in the crypto space looking for RWA exposure? What can they do? They can host with MinePro.
Hosting Arm:
MinePro will have 10,000 megawatts of power at their disposal, dispersed over 5000 acres of land. That gives enormous opportunity to host other projects in the crypto space looking for stable RWA revenue. Projects can allocate their treasuries and build their own operations providing them stable revenue for years to come.
How will Hosting Work?
MinePro will guide and onboard each project in the process of purchasing, and on-ramping their own infrastructure within our site. We will handle the relationship cultivation, and account management internally.
What’s In It For Us?
We will charge each client a % portion of their Bitcoin rewards every single month as a fee to host with us. This fee will be anywhere from 10-20% every month depending on the size and scale of the operation. That fee will then be shared back to $MINE stakers through the staking pool, allowing us to scale without the need for further internal investment. This fee becomes substantial when taken to the scale of 100 clients or more. It’s also important to remember that some clients may have substantially large operations with millions in Bitcoin being produced monthly. That would make the staking reward distribution substantially higher even with a lower number of clients to start.
Why Pay up to 20% of your Bitcoin Rewards?
Simple. For the opportunity to host at an unbeatably low rate of 2 cents per kWh all in. The team has been hosted all over the world, South America, Asia, Africa, and the Middle East. The very best hosting option we’ve ever seen is 4.5 cents per kWh, plus 15% of rewards, plus import/export tariffs. Our rate is so competitive that even with our % fee factored in, were confident that we’d still be less that 98% of operations available.
What are our competitive advantages with hosting?
There are many, but the most crucial are:
-
Stable Government – Anyone who’s been in the mining space knows full well how important this is. Power providers in less developed nations may be able to offer cheap power, but they can’t control sporadic government regulations. Recently Paraguay imposed a 50% tariff on all mining operations instantly, with little to no voting or legislative procedure. We offer a stable and cooperative government within Alberta, which is fully compliant with all local utility authorities.
-
Reliable Power – This is a big one. Getting low cost power usually requires hosting in a under developed nation. Often the native power grids are antiquated, running on generations old transformers, and circuitry. This simply will NOT work for Bitcoin mining. A mining operation draws a tremendous amount of power, and without adequate infrastructure, the project risks constant downtime, and exorbitant maintenance costs.
-
Tariffs – A major problem with importing machinery are import and export tariffs. Most locations with competitive power rates are in locations that aren’t actively in open trade agreements. Paraguay and Argentina for example require a 35% tax just to import. That’s substantial for a multimillion dollar order of miners, but let’s not forget export. Same rate applies, which means essentially, you’re stuck in that country if any of the aforementioned issues arise. Leaving the hosting site after paying 70% in total tariffs just isn’t feasible.
It’s easy to see why MinePro will be such an attractive option for projects in the space looking to tokenize. We’ll deliver a safe, competitive, and reliable option for those looking for RWA exposure. Why buy real estate to maybe earn a fraction of a percent each month, when you can earn Bitcoin through MinePro at 5-15% per month? It’s an easy choice.
Why ICP?
Unique value add through Bitcoin liquidity and defi
We believe MinePro is poised to bring a truly unique value add into the ICP ecosystem. It’s been a general consensus that ICP has been lacking in both defi offerings, and Bitcoin liquidity. We hope to bridge this gap, and allow other Bitcoin centric protocols to move over to the ICP ecosystem (through hosting) which would (by design) increase the chain’s Bitcoin liquidity substantially.
Decentralized Dao architecture
By operating through the Internet Computer Protocol as a DAO, MinePro is able to autonomously decentralize the ownership of the ASICs, and Bitcoin yield utilized in the protocol. In tandem with our partnership with Loka Mining, we can distribute these rewards with absolutely no custody of the incoming rewards.
ICP is the only system with the architecture which currently allows the DAO to truly own and maintain control over the staking application, token, mining yield, mining machines (ASICs), and even the community chat and more for MinePro. This allows us to create a vastly more attractive investment offering than would otherwise be possible.
When building out MinePro, we ensured we remained cognisant of the fact that the offering could become supremely unattractive if the MinePro team held too much control over the processes and overall project. We are adamant that we do not want our protocol to have the same structure as a lot of mining projects and hosting services, which is essentially making an investment into an opaque organization and hoping for the best.
Additionally, Bitcoin mining as a concept ties in directly to decentralization and is the original system for decentralization, so a DAO which legally owns the rights to all equipment and yield is the perfect structure.
Long Term Vision:
Our goal at MinePro is to not only create synergy within the Bitcoin mining space, but the RWA space, and Web3 as a whole. Having a viable RWA platform on ICP will potentially open a world of adoption in defi to ICP. We would require the launching of all mining data infrastructure on the ICP network, which will in turn, will cross pollinate these project communities with the ICP ecosystem. In the next 2 years we plan to onboard a minimum of 50 hosting clients to the ecosystem. That’s 20% of rewards from 50 clients shared back to $MINE stakers every month.
EVM Launch – We’re partnering with Bitfinity to launch an EVM offering on their L2 for MinePro. We believe for expansion it’s going to be critical to encompass all of Web3. The team at Bitfinity are extremely supportive and believe in Bitcoins role within the ICP ecosystem.
Note: The Bitfinity launch and operation will be separate but in tandem with the MinePro Dao SNS. Rewards from the SNS offering will not be shared on the Bitfinity side. All rewards from the native ICP SNS will be 100% dedicated to the Dao.
Transparency:
Seeing is believing, that’s why MinePro has taken steps to offer visibility into our operation. Our mining farm is located in Alberta Canada, about 5 hours Northeast of Edmonton. This area is rich in gas reserves and has a climate that is extremely favorable to mining Bitcoin. MinePro and Logic mining together have already sent numerous KOL’s to document the site operation which can be viewed on our twitter and homepage. The operation will be under contract for 5 years, which will fully be disclosed to the DAO. With a Bitcoin mining operation, security is of the utmost importance, so the exact location of the operation can’t be disclosed publicly. However, the team is more than willing to arrange a Dao representative to visit on site.
Social Proof and Business Development:
The buzz behind MinePro is continuing to grow, due to our proven operation earning millions in Bitcoin per month, and our successful social fi campaign which brought in millions of posts and impressions on Twitter. Our goal is to keep that momentum going, bringing volume and users to the ICP ecosystem. At launch we plan to initiate a massive marketing campaign which will include a multi funnel approach, encompassing not only all of Web3, but Web2 as well. This includes articles and press releases in every major Web3 publication available, conventional advertising via programmatic display, Meta, and Google. We’ll have Youtube coverage from some of the biggest KOL’s in the space, and much more. Heres some stats:
Twitter – 40k Followers (pre launch)
Discord – 25k Members (pre launch)
Telegram – 22k Members (pre launch)
Social Fi Participants – 100k (pre launch)
Tokenomics and Voting:
The $MINE token is a deflationary asset with a fixed supply. The tokenomics are as follows:
Total Supply – 400,000,000
Treasury Allocation – 30% (Subject to DAO voting.)
Decentralized Sale Allocation – 35% (Including Neuron Fund, see below for vesting.)
Development Team – 15% (12 month neuron)
Early Contributors – 10% (Initial infrastructure funding, 12 month neuron)
Liquidity Allocation – 10%
Each participant in the Decentralized sale will have 2 options to receive their tokens:
- Stake immediately from the NNS with no vesting (6 months or higher.)
- Receive tokens in 3 separate equal neurons with 1 month dissolve delays, 0,3,6 months respectively.
Minimum Raised – 250,000 ICP
Maximum Raised – 850,000 ICP
Minimum Contribution – 10 ICP
Maximum Contribution – 200,000 ICP
Voting:
The voting rights are to be distributed amongst the Dao. All actions within MinePro are subject to a DAO vote via proposal. This includes the treasury allocations and all future development. To vote, $MINE holders will need a minimum of 500 tokens in a neuron, with a minimum dissolve delay of 3 months. All failed proposals will cost the proposer 100 $MINE.
Potential Attack Vectors:
We’ve Identified potential attack vectors in the decentralized sale. Although highly unlikely, it’s possible that 1 individual (or group) could purchase 75% of the sale allocation giving them control over the MinePro Dao treasury.
Treasury & Funding Disbursement:
We understand the mission of the SNS is to remain a decentralized entity, at the behest of Dao voting. However, within the RWA landscape that becomes a difficult task, considering you’re deploying “Real World Assets.” How do you bridge this gap? To have the ability to deploy proven income producing assets, and decentralization? Our answer to this is very simple. The Dao will own the assets. The primary purpose of the decentralized sale is to fund the physical miners (ASICS) within the facility. We will purchase Antminer S21’s which are the latest and most optimal solution. The miners will be accounted for, and owned, by the Dao in a SPV. They will be fully insured and housed on location at our facility. This isn’t an unproven concept, or an MVP, or a promise of revenues to come. This operation simply does not rely on mass adoption to produce revenue. This is an actual, verifiable revenue source, every month directly to the Dao.
Upon completion of the decentralized sale, all funds will be held in the treasury. At the time of purchase, MinePro will submit a proposal to withdrawal 80% of the funds. Of that, 90% of the funds will be used to purchase the miners, and the remaining 10% will be allocated for pipeline and facility maintenance. The remaining 20% of ICP will be left in the treasury as capital reserves, staking initiatives, and investments into the ICP ecosystem.
Why 80% of the funds?
The more miners we can get online immediately, the more rewards we can share with the Dao. It is in fact possible to purchase these miners in tranches, but it has inherent risk. The newest generation ASIC’s have overwhelming demand, so there’s no way to be certain of their availability in the future. Rather than potentially face a backorder situation, its best to fulfill the order when available. Also, there’s no way to guarantee future price. If the demand continues to rise, there’s a very good chance the miners will increase in price over the next 12 months. Purchasing in bulk secures the best rates from Bitmain. The goal is to be earning as soon as possible, to capitalize on upward price action of Bitcoin. The miners will be delivered via air shipping directly to our colocation facility in Alberta Canada.
And the remaining 10% not used to purchase ASICS?
These funds will be allocated for the following:
-
Maintenance salaries 50% – The site requires 24/7 security and maintenance. This includes the pipeline, container infrastructure, and network maintenance. This allows us to maximize uptime, and maneuverability, should any issues arise.
-
Replacement parts 30% - This includes server machinery, PDU’s, native electronic engine systems, pipeline mechanicals, and generator components. These systems are built extremely well; however, the mark of a good operation is the ability to resolve issues expeditiously as they occur. In the wake of a mechanical issue, not having the necessary parts results in downtime.
-
Capital reserves 20% – This would entail any legal work, filing expenses, and emergency allocations.
All existing infrastructure which includes, well installation, and container builds, have already been funded by our early contributors. Therefore, the only direct costs will be miners and upkeep. $MINE Tokens in the treasury are to be used to further grow the ecosystem. This can include bonuses for longer term staking, and incentivizing projects to join and host within the ecosystem. All will be subject to Dao vote.
Conclusion:
We’re proud to offer the Minepro Dao to the ICP ecosystem. We’re confident we can offer reliable, and safe passive income to this community, while scaling not only our project but ICP as a whole. We believe RWA tokenization will be next big narrative and driver in Web3. If that is the case, then ICP needs to be on the forefront with a solution that isn’t based around speculation, and false promises. Please don’t hesitate to leave any questions below, and look forward to seeing all of you on the voting floor!
Bitfinity hasn’t launched their mainnet yet, our plan was to unveil both as we prepared for the SNS. We’re allowed to have our own roll out plans as hard as that may be for you to accept. We haven’t had anything on our site about Base for many months already.
