The value of cryptocurrency is defined by three things — decentralization, demand, and scarcity. Trust Platform’s TXT token, like Bitcoin, incorporates a halving mechanism that increases TXT value while rewarding players — but how does it work?
Trust Platform offers users a range of provably fair games such as Trust Dice and Crash. Players are able to use a variety of different cryptocurrencies to play Trust Dice and other games on Trust Platform, including Bitcoin, EOS, OATH, UUU, and Trust Platform’s own token, TXT.
TXT performs a range of different functions on Trust Platform, such as allowing users to stake their TXT in order to share platform profit. One of the most interesting functions of TXT, however, is the way in which TXT is mined.
Unlike Proof of Work cryptocurrencies like Bitcoin, you don’t need expensive and powerful dedicated mining hardware to mine TXT. Trust Platform players are able to mine TXT through the Trust Platform Wage-to-Mine process, which distributes TXT to players.
The TXT economic model incorporates a unique halving function that incrementally reduces the amount of TXT distributed through the TXT mining model, thereby decreasing TXT availability and increasing TXT value.
We’ll proceed to break down what TXT is, how TXT mining works, and how TXT is distributed to Trust Platform players.
What is TXT?
TXT, or TRUST, is the dedicated cryptocurrency token created specifically for the Trust Platform. TXT was made available to early Trust Platform supporters during the Trust token sale — 10 percent of the 5 billion TXT total was sold in initial crowd sale stages, with a further 40 percent reserved for strategic partners, team incentives, and bounties.
The remaining 250 billion TXT, however, is reserved solely for distribution though the Trust Wage-to-Mine model. Users that mine TXT are able to wager their TXT on games via Trust Platform, or participate in the TXT staking model in order to share Trust Platform profits or increase their winning bonuses.
TXT can also be used to participate in the Trust Platform community governance system. Users that hold TXT are able to impact the growth path of Trust Platform or deposit TXT to earn interest in Trust Bank.
What is Wage-to-Mine?
Trust Platform’s Wage-to-Mine model rewards users that play games on Trust Platform with a variable amount of mining power. The mining power of a player is determined by a variety of different factors, which include the amount a player wagers in a game and other platform contributions.
The Wage-to-Mine model operates on a similar scarcity model to the Bitcoin halving. Every 250 days, the amount of TXT distributed via the TXT Wage-to-Mine model is halved, following the BTC halving model.
How is Mining Power Determined?
The mining power of a player is determined by their wagering amount multiplied by their mining rate, multiplied by any applicable mining bonus. Mining rate is affected by the type of cryptocurrency used to wager — the mining rate of EOS is always set to 1, but the mining rate of other supported cryptocurrencies will vary.
The mining rate of other cryptocurrencies is determined by the exchange rate of the specific cryptocurrency to EOS and is updated on a daily basis.
Users are able to increase their mining bonus in order to improve their mining power — the initial value of the mining bonus is set to 0 for all users, but can be increased by staking TXT. Staking larger amounts of TXT through the TXT staking function increases mining power at a faster rate. Users are also able to gain a daily mining bonus, which is determined by the amount of TXT staked the previous day.
The TXT Wage-to-Mine Halving Schedule
If you’re not familiar with “halving” — halving functions as a method of reducing the total amount of cryptocurrency tokens issued by a blockchain network. The Bitcoin network rewards Bitcoin miners with a specific amount of Bitcoin every 210,000 blocks — this occurs roughly every four years.
The total amount of Bitcoin that will ever be issued is fixed at 21 million. When Bitcoin launched, miners were rewarded with 50 BTC. In 2012, the Bitcoin block reward was halved to 25 BTC, which occurred again in 2016, reducing the total amount of Bitcoin given to Bitcoin miners for solving a block to 12.5 Bitcoin.
By limiting the total amount of Bitcoin that will ever exist and halving the rewards distributed to Bitcoin miners, the Bitcoin network is deflationary, as opposed to the inflationary nature of fiat currencies. This mechanism has helped Bitcoin skyrocket from early prices of a fraction of a cent to tens of thousands of dollars.
Trust Platform has incorporated a similar model in the way TXT is distributed in order to limit inflation and nurture the price of TXT tokens. Rather than wait four years between halving, however, TXT distribution via the Wage-to-Mine model is set at 250 days.
Every 250 days, Trust Platform releases half of the total remaining 2.5 billion TXT reserved for Wage-to-Mine distribution. The initial TXT distribution made 1.25 billion TXT available to Trust Platform players for the period covering the 1st to the 250th day of Trust Platform operation, representing 25% of the total TXT supply.
The next halving, representing the period covering the 250th to the 500th day of operation, will make 625 million TXT available to Trust Platform miners through the Wage-to-Mine model, representing 12.5% of the total supply. The next TXT halving is scheduled to occur on the 5th of August.
Subsequent halvings will see the third halving release 312.5 million TXT, then 156.3 million TXT, ad infinitum until the total 50 billion TXT reserve directed toward the Wage-to-Mine model is depleted.
How Does TXT Distribution Work?
TXT is distributed on a daily basis through the Trust Platform Wage-to-Mine model. TXT is distributed to each Trust Platform user based on their mining power for the previous day.
The total amount of TXT to be mined in a particular day can be viewed via the Trust Platform TXT mining dashboard. Distribution is calculated based on the total number of mining players and their mining power.
If there are 5,000,000 TXT available via Wage-to-Mine in a single day, for example, this TXT will be distributed between participating players based on their mining power for the day. If there are only two players in this day — player A and player B, the TXT is distributed between them based on their individual mining power.
In the above example, if player A possessed a mining power of 60, while player B possessed a mining power of 40, the total amount of available TXT would be split between them. 60% of the TXT would go to player A, while 40% would go to player B.
How Does TXT Halving Benefit You?
The Trust Platform Wage-to-Mine model is designed to reward players, as well as provide them with the ability to participate in Trust Platform governance or stake TXT for greater profits. The unique economic model used to distribute TXT provides dedicated players with greater rewards, while ensuring that all players are rewarded for participating in the Trust Platform gaming ecosystem.
The greatest benefit of the TXT halving model, however, is the manner in which it slowly increases the value of the TXT token. By decreasing supply, the Trust Platform Wage-to-Mine model creates a token economic system in which TXT value increases over time — providing players with bigger wins over the long term simply by playing games on Trust Platform.
If you’re interested in participating in TXT mining or staking TXT to increase your bonuses, try Trust Dice or Crash on Trust Platform today!
Original article: https://forum.trustdice.win/index.php?/topic/64-wage-to-mine-how-txt-mining-halving%C2%A0works/
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