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IPM Pool
IPM defines a fair way of balancing the interests of miners, investors, developers, and users.
It is reasonable to think of the IPM Pool as the opposite of most mining pools. Rather than miners minting currency to exchange for BTC, the IPM pool consists of investors turning BTC in to BTM by cooperatively hiring mining rigs to support the network. This has multiple benefits for all Bitmark parties, and allows Investors to acquire Bitmarks fairly at a price close to that of production.
- Relatively fast and relative stable network: The hashrate contributed by the IPM pool keeps the network relatively fast and relatively stable, even when multipools hop on and off the bitmark network, since 35% of the target network hashrate is provided by the IPM pool.
- Decreased effects from unfair actors: If any unfair miner with a lot of hashing power joins the network to drive up the difficulty and then leaves, the honest miners know that the IPM pool will contribute 35% of the required hashing power to keep the network moving reasonably quickly, as the IPM pool has a variable hashrate compared to the honest miners hashrate which is a fixed resource.
- Increased Network Security: The presence of the IPM pools ensures a portion of the network hashing power is always with an honest node, additionally honest miners are encouraged and rewarded fairly by being part of a network with an IPM pool. This helps mitigate against 51% attacks and creates a more secure network for all parties.
- Decreased Price Volatility: Investors can acquire a fair percentage of the available daily BTM at a cost near that of production, their actions encourage honest miners who believe in Bitmark and see some value in holding it. These two factors work together to reduce downward pressure on the markets, and keep the price from drifting too far for the production cost.
- Stable Development: 5% of the bitmarks minted by the mining pool go to the Bitmark Foundation to support long term development of Bitmark. This increases the stability of Bitmark as a project, encourages the earned value of Bitmark, and secures the investment made by all parties.
- Natural Growth: Natural growth in all areas of Bitmark is encouraged by the presence of the IPM Pool, as it unifies the efforts of miners, investors, and developers so that they all support each other fairly, with no single party able to acquire an unfair advantage.
- Encouraged Adoption: The combined benefits of the IPM Pool encourages adoption, users have the knowledge that investors believe in the currency they are using, that a fair percentage of the new Bitmarks generated daily are bought at near production cost which gives them faith that the exchange rate of the currency is reasonable and not manipulated, the network is kept relatively fast secure and stable making it particularly suited to a daily transaction network, user focussed development is always active and fairly funded.
The target block time for the Bitmark network is 120 seconds, this equates to 720 Blocks per day. During the first block reward period 20 new coins are minted with each block. This totals 14,400 BTM per day.
The maximum IPM Pool hashrate is currently set at 35% of the required network hashrate.
The IPM Pool therefore can mint a maximum of roughly 5040 BTM per day, some variance is to be expected as total network hashrate may rise or fall during the day.
Investments are defined as BTC transactions, each individual investor may have multiple active investments.
Each investment is associated with a Bitmark address specified by the investor, BTM payouts are automatically sent to the Bitmark address.
Investments are queued in chronological order based on time confirmed, where two investments confirm at the same time they are queued according to time sent.
Investments are activated in order until the amount required to purchase the maximum daily hash rate has been met.
Hashrate is always purchased each day while there are available investments in the queue, there is no minimum hashrate for the IPM Pool as investment is entirely optional.
If a single investment is larger than the amount required to purchase the maximum hashrate, it is consumed once per day until zero.
Block Rewards take 721 confirmations to mature, therefore each days earned BTM and it's distribution will be reported shortly after the difficulty changes, and BTM payments will be automatically issued the following day.
5% of the BTM minted each day is sent to the Bitmark Foundation to support consistent active development.
The remaining 95% is distributed proportionally between the currently active investments.
Running at the maximum allowed hashrate roughly 5040 BTM will be minted by the IPM Pool each day. This will generate 252 BTM for the Bitmark Foundation, and 4788 BTM to the active investments.
Bitmark changes difficulty every 720 blocks (1 day). Difficulty defines the required hashrate for blocks to be generated on average at the target speed of 120 seconds.
The required hashrate for the Bitmark network can be calculated using the following formula:
difficulty*2^32/120 = required-hashrate
For a difficulty of 52.9028 we can calculate that the required hashrate as follows:
(52.9028*(2^32))/120 = 1,893,464,965.56 (1.893GH/s)
The maximum IPM Pool hashrate is currently set at 35% of the required network hashrate. In this example it would be 662MH/s (662,712,737.945).
At the time of writing the average cost per megahash per day is $0.62 or 0.001 BTC. The maximum IPM Pool hashrate is 35% of the required network hashrate.
Production costs will vary over time, for the purpose of this question we will suppose they are fixed at the current price of $0.62 per MH/day.
The following chart projects an estimated production cost of the IPM Pool:
Network Required Maximum IPM IPM Pool Production Cost
Difficulty Network HR Pool HR Day Cost of 1 BTM at RS1,2,3
16 572.66 200.43 $124 $0.0247
32 1145.32 400.86 $249 $0.0493
64 2290.65 801.73 $497 $0.0986
128 4581.3 1603.45 $994 $0.1973
256 9162.6 3206.91 $1,988 $0.3945
512 18325.19 6413.82 $3,977 $0.789, $1.57
1024 36650.39 12827.64 $7,953 $1.578, $3.15
2048 73300.78 25655.27 $15,906 $3.156, $6.31
4096 146601.55 51310.54 $31,813 $6.312, $12.62
8192 293203.1 102621.09 $63,625 $12.62, $25.24, $50.49
10000 357913.94 125269.88 $77,667 $15.41, $30.82, $61.64
15000 536870.91 187904.82 $116,501 $23.11, $46.23, $92.46
20000 715827.88 250539.76 $155,335 $30.82, $61.64, $123.28
25000 894784.85 313174.7 $194,168 $38.52, $77.05, $154.10
30000 1073741.82 375809.64 $233,002 $46.23, $92.46, $184.92
40000 1431655.77 501079.52 $310,669 $61.64, $123.28, $246.56
50000 1789569.71 626349.4 $388,337 $77.05, $154.10, $308.20
HR = hashrate. RS = Block Reward Schedule 1,2,3 correlating to 20, 20 and 5 BTM respectively. The current Litecoin network difficulty at the time of writing is around 20,000.