When I first started mining Atoms at POWNFT.com a couple days ago, I just thought I might flip them on OpenSea for a profit.
I buy NFT art sometimes with the intention of keeping it, but collectibles I typically intend to flip for a profit.
Only today did I look at my collection on there and see the following:
As you can see, I've earned about .05 ETH per NFT of the ones I mined myself. The thing is, I only paid about .05 ETH gas included mining them. So all the future ETH earned is pure profit.
Even the last one, which I bought on OpenSea, is earning me ETH. How long it will be until I've earned enough to compensate myself for the Atom I'm not sure. I paid significantly more for that one because I chose it specifically. When you mine them, you get what you get.
How The Rewards Work
The holders of the NFT are the ones who get the mining fees. Not the ETH mining fees, but the Atom mining fees built into the contract. They don't actually go to the creators of the contract. So when you buy one or mine one, you share in the ETH paid for future ones, and that amount keeps going up.
There is increasing difficulty (time to mine a new Atom) and increasing cost paid to current holders of Atoms as the project matures. Eventually there is a difficulty bomb at around 16k Atoms mined, so effectively no one will probably mine after that. It won't be cost effective.
We're at about 2k mined right now, so hitting 16k mined is probably at least a week or more away, depending on how many people participate in mining in the meantime.
How the Miner Works
Here's from the site:
The POW NFT website has an Atom miner built right into it, if you’re connected to the site with MetaMask, you can start the miner (it’s at the bottom of your screen).
The reason you need to MetaMask is because it uses your Ethereum address to mine an Atom specifically for you....The miner is designed to not use too much of your computer’s processing power. It will mine slower if resources are limited in order to prevent your browser from acting sluggishly.
Once an Atom has been found, the miner will prompt you to submit a transaction with MetaMask and mint the token. The cost of this transaction will be partially dependant on current gas prices (gas cost to mint is approx. 192,000 gas per token), and partially on the minting cost determined by the demand curve.
The cost to mint a new Atom is currently 0.092115 ETH.
Again, on Friday evening it was more like .03 ETH before gas fees of about .02 ETH, so you can see the fee paid to current Atom holders to mint a new one is increasing fairly rapidly. This will only accelerate over time, though the number of people fees are being split among will also increase, of course.
A few things to keep in mind:
- Don't mine in multiple tabs or you'll be competing against yourself
- Pay a high gas fee or though someone won't get the same Atom you would have, they may get that block before you. So when the buzzer goes off saying you mined one, be quick and don't be cheap.
- If you see multiple transactions for the same alert that you mined one, cancel them all. Someone beat you to the punch and you'll just be paying for failed tx at that point. Refresh your screen and clear any failed transactions before mining again.
This is pretty fun and doesn't take much processing power. Given that you pretty much get an income in ETH just for participating, it's pretty hard to justify not doing it. Unless of course you don't have the .1 ETH or so to even get started.
If you're into Chemistry, you may even enjoy simply having the Atoms. Some come with unique features, like free ions, which are pretty rare. The one I bought on OpenSea was like that. Rare Earths would probably also be pretty valuable and unique.
Posted Using LeoFinance Beta
Great to know, I love NFTs and have minted my own art on Hive's nftshowroom.com to sell. I like the idea of mining atoms but not the idea of spending so much ETH as I don't really have that much.
Yeah, It is getting pricier now. I'm glad I did it at .03 ETH, even though I didn't know I would earn ETH for doing it.
The good news though is that if you can sell other crypto to get the .1 ETH (maybe more like .15 to be on the safe side with gas fees) you'll earn it back and then some over the rest of the project.
I like buying art on NFT Showroom, but the problem is that I can't see them with the rest of my collection, which is mostly on ETH. I have the same problem with my FLOW, WAX and OMI NFTs. Silos.
Yes the silo effect is a bother, though I'm hoping someone will come out with a cross chain solution. Sometimes I don't know which platform to choose to mint a NFT, since there are numerous. You're correct, we simply factor in the gas fee into our artwork price I presume.
Just when I thought I was learning about NFTs - https://nefties.com/learn - the phrase "mining NFTs" pops up! Never heard that before. But it goes with my thesis that the biggest thing in NFTs hasn't even been thunk up yet. Thanks for this post...something to investigate further. !LUV .1
Command accepted!
Brilliant
I like farming and mining
that is profitable
Posted Using LeoFinance Beta
Enjoy! May it enrich you.
Wow, since I initially wrote this my earnings have gone up by .02 ETH. At this pace I'll earn an extra 1 ETH every 4 days!
Hey @indigoocean, you were just shared some LUV! See the LUV tokens in your wallet at https://hive-engine.com or learn about LUV at https://hive.blog/@luvshares
Congratulations @indigoocean! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
Your next target is to reach 88000 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPYour level lowered and you are now a Minnow!
Support the HiveBuzz project. Vote for our proposal!
hello @indigoocean,
It's a little complicated to understand but I'm glad you're making a profit, how much did you invest initially?
publicity note:
I'm promoting That curation trail on HIVE and it would help me a lot if you forward it, You can also check it yourself: you might find it interesting to join, I'd love to hear your comments.