On June 21, 2019, the NEST team released a revised version of the mining algorithm for Mortgage Lending Products. Next, we will explain in detail the revised new mining mechanism.
Let's first look at the amount of foundation mining (regardless of attenuation):
For every 0.01 ETH fee paid NEST mining quantity is 1000 NEST
Then, take a look at the core factors affecting mining efficiency. Here, explain from the level of the mining pool and the level of mortgage lending products:
NEST mine attenuation factor:
Block height influencing factors: B
The NEST mining system was officially launched on December 19, 2018. The starting block height is: 6914762, triggering a decay every 6666 blocks, and the B value is attenuated by 1‰.
6914762 ~ 6921428 Block: B = 1;
6921428 ~ 6928094 Block: B = 1 * 0.999;
6928094 ~ 6934760 Block: B = 1 * 0.999 * 0.999;
And so on.......
Excavated NEST total attenuation factor: Q
Every 100 million NESTs are excavated to trigger an attenuation, and the Q value is attenuated by 4% each time.
0 ~ 100 million, Q = 1;
1 ~ 200 million, Q = 1 * 0.96;
2 to 300 million, Q = 1 * 0.96 * 0.96;
And so on.......
Factors affecting the parameters of mortgage lending products:
Influencing factors of loan asset types: C
NEST has been on the line of mortgage lending assets, C = 1;
Mortgage lending assets supported in the NEST library, C = 0.8;
Other assets, C = 0.1;
We will pay the X ETH handling fee NEST mining quantity as the NEST standard mining quantity M:
M = (X / 0.01)* 1000 * B * Q * C;
Assume that the total amount of NEST excavated in the first 300 blocks is K. When the current X ETH fee is paid, the number of NEST standard miners is M. We define the following attenuation factor as Y:
Y = K + M
If Y > 200000 * Q, then the following attenuation will be triggered, and when X ETH is charged, the number of NEST mining is ME:
ME = [(M * 200000 * Q) / Y ] + [ M *(Y - 200000 * Q) / Y ] * [ 200000 * Q / Y ]
If Y <= 200000 * Q, then the following attenuation will not be triggered, and the X ETH handling fee will be paid. NEST will produce M (the number of standard mining).
Assume that the actual mining quantity of NEST is W. For users (miners), the NEST mining ratio is still 80%, and the amount of mining by both borrowers and borrowers is as follows:
Number of miners mining: V1 = [(20 - 1.9 * (X / 0.01)) / 100] * (W * 80%)
Borrower mining quantity: V2 = W * 80% - V1
The cost parameter X in the V1 formula is 0.1 ETH, which means that if X > 0.1 ETH, X = 0.1 ETH.