At a Glance
- ORE is a Solana-native digital commodity designed as a store of value accessible through on-chain mining.
- It features a capped supply of 5 million tokens and a provably fair, one-minute mining cycle.
- Miners stake SOL on a grid, with winners sharing losing blocks’ SOL and potentially earning ORE tokens.
- A Motherlode pool offers bonus ORE rewards, and a portion of mining rewards is used for ORE buybacks.
- The protocol originated from a CPU-friendly mining concept and has evolved into its current grid-based system.
Introducing ORE: A New Era of Digital Commodities on Solana
Every era in cryptocurrency has produced its own symbol of value. Bitcoin demonstrated the power of scarcity, while Ethereum showcased the potential of programmability. Now, on the Solana blockchain, the demand for speed and openness has paved the way for a native asset – a store of value that anyone can mine directly on-chain ⛓️.
ORE aims to bring this vision to life. It’s a Solana-native digital commodity built upon principles of fairness and transparency. With a strictly capped maximum supply of just 5 million ORE tokens and no insider allocations, ORE operates on a one-minute mining cycle governed by a provably fair process.
The ORE Mining Mechanism
Each mining round takes place on a 5×5 grid. Miners deploy a small amount of SOL onto a block within this grid. Once the minute concludes, a random generator determines the winning block. All SOL deposited on the losing blocks is then redistributed proportionally among the miners who claimed space on the winning block. This ensures that even if a miner doesn’t win the primary ORE reward, their SOL stake can still be recouped and potentially increased.
In most rounds, a single winning miner is selected via weighted chance to receive an additional 1 ORE token. Approximately once every three rounds, this approximately 1 ORE reward is shared among all miners on the winning block 🧱. This mechanism balances the potential for significant individual gains with a more distributed reward structure.
The Motherlode and Protocol Revenue
🎰 A special Motherlode pool contributes an additional 0.2 ORE to the rewards each round. This pool has a 1 in 625 chance of triggering, acting as a decentralized jackpot that accumulates until it’s won, at which point it’s distributed among the winning miners 🏆. This adds an element of excitement and potential for larger rewards.
✨ A notable feature of the ORE protocol is its revenue distribution model. Ten percent of all SOL mining rewards are automatically collected by the protocol. This collected revenue is then used to buy back ORE tokens from the open market. Of the ORE tokens purchased, 90% are buried (locked), and the remaining 10% are distributed to stakers as yield 💸.
Evolution of ORE Mining
ORE initially launched with a CPU-friendly proof-of-work algorithm named Drillx. This algorithm was designed to make mining accessible to anyone with standard computing hardware, democratizing access to the ORE token. Since its inception, the protocol has evolved, transforming into its current grid-based system. This evolution has been driven by the goal of establishing a fair and self-sustaining economy around ORE mining.
Expert Summary
ORE represents a novel approach to digital commodities on the Solana network, emphasizing fairness and transparency in its mining process. Its capped supply, provably fair one-minute mining cycles, and unique reward distribution mechanisms, including the Motherlode pool and protocol-driven buybacks, aim to create a stable and valuable on-chain asset. The evolution from Drillx to the current grid-based system highlights a commitment to accessibility and sustainable economic principles.