Author: Arain, ChainCatcher
Editor: Marco, ChainCatcher
Ore resumed mining on August 6, becoming a highly anticipated project on Solana this week, and its popularity on the Web3 data asset platform RootData soared.
On July 29, Ore founder Hardhat Chad released the ORE v2 version update. According to Coingecko data, the price of Ore hit a new high of $1,409 per coin at noon on July 30, up nearly 40% in 24 hours.
Based on the performance of Ore V1 in April this year - the mining enthusiasm brought by the project at that time caused Solana's network congestion, forcing Solana to upgrade its technology, as well as the market turmoil before V2 mining, many miners turned their attention to the project and mined after V2 was launched.
Perhaps due to the impact of the large-scale market crash, contrary to expectations, the price of Ore has plummeted since the resumption of mining on August 6. As of press time, its price has fallen by nearly 90% from the highest point, and miners have complained in the community that Ore is at the shutdown price.
Ore V2 Current mining income is not optimistic
Hardhat Chad, the anonymous founder of Ore, said that Ore will become the "native currency of the Internet." Similar to Bitcoin, Ore adopts the proof-of-work (PoW) algorithm, and the total supply is also set at 21 million. Unlike Bitcoin, Ore is a "non-exclusive mining reward mechanism." In layman's terms, each miner solves his own "question", and the "question" in the hands of each miner may be different, and each miner is not in competition with each other.
In theory, Ore does not require miners to have hardware facilities or computer knowledge. Its official website claims that "any laptop, mobile phone or home computer can mine ORE. There is no need to buy advanced hardware, and even software novices can start mining."
However, this is not the case. According to an interview with ChainCatcher, new miners who plan to mine Ore have encountered some problems in deployment.
Miner Xiao C only studied mining after Ore V2 started mining. He said that because the tutorials on the Internet were too fragmented, he personally tried to deploy it, but it was not very successful. He has now handed over the tutorial documents to the team's technical staff for research.
Wang Xiaolou is a Chinese-speaking KOL in the crypto industry on Twitter. He is also a founding member of KillerWhalesDAO. After successfully mining Ore with a personal computer, he shared his mining tutorial.
He told Chaincatcher that he started mining at 8:00 a.m. on August 6, but did not keep mining. "I don't remember how long it took. Now the Stake balance shows 0.00458741627 ORE."
Wang Xiaolou pointed out that Ore has been upgraded to V2. It is not feasible to mine Ore by renting a server. It can be tried successfully with a personal computer. However, his personal "M3" is a bit overwhelmed at present. M3 is the world's first computer chip based on 3-nanometer technology launched by Apple in October 2023.
"It's hard to mine now, but you can try it." Wang Xiaolou said.
Xiao C said that Wang Xiaolou's experience in mining Ore made him reconsider whether to deploy mining Ore. "This is the shutdown price. My friend just said that he only mined 0.0004, which is enough for electricity. The income is so small, I may not consider mining for the time being."
But Wang Xiaolou said he would continue to mine, "This is my pursuit of technology."
Chaincather also found that the voices complaining about the low income of Ore mining are flooding the Ore community. There are many miners like Wang Xiaolou who are "painful and happy" and joke that they are mining at a loss.
Why Ore is attracting attention again
"Ore2.0 is here. The original mining feast directly caused the entire Sol chain to idle, and the coin price rose to tens of thousands of U. Now 2.0 can be mined directly on the web page. Open the web page, link the wallet, and you need some gas. Hurry up and take action." KOLs on Twitter called for it when Ore V2 arrived.
Today, as users continue to flock to the high-performance, low-cost Solana public chain, a novel mining protocol "Ore" designed for fair token distribution has emerged. This is like a kind of Bitcoin on Solana, which once set off a mining craze on Solana.
On April 2, ORE V1 was deployed to Solana, providing mining opportunities for those who deposit SOL into smart contracts, thereby sharing the protocol reward of 1 ORE per minute.
Ore has no venture capital support behind it. Hardhat Chad said that it was launched as an experimental hackathon project, and the project won a $50,000 prize from the hackathon supported by the Solana Foundation in early May. The latter determined that Ore might be one of the next wave of projects that would have an impact on Solana.
Ore did affect Solana. In mid-April, this conclusion had been verified by the market. Many people became interested in "Bitcoin" on Solana, and with the high output of 1 ORE per minute, Ore mining was once the most used behavior on Solana. Because the Ore V1 algorithm is easier to be manipulated, a large amount of spam appeared and blocked the Solana network, causing many transactions initiated by mining behaviors to fail - only those who submitted successfully could successfully mine Ore.
On April 16, Hardhat Chad announced the suspension of mining, improvements to Ore, and the launch of Ore V2. As a result, Ore temporarily quieted down in the market.
At the end of July, Ore was re-launched in the form of Ore V2, which is a completely different version from V1. This version is divided into three stages: upgrading v1 token metadata, activating v1 to v2 upgrades, and activating mining.
Ore v2 version updates include:
Cancel the administrator variable: The new version cancels the administrator variable by switching to open source algorithm management, which will increase the degree of decentralization of the system;
Supply limit: Ore v2 sets a total supply limit of 21 million pieces, which is expected to be mined by 2064;
Introduce a staking mechanism: miners can obtain up to 2 times the mining reward through staking;
CPU-friendly hash function: adopts CPU-friendly hash function. A friendlier hash function reduces the requirements for equipment in the mining process and improves the accessibility of mining;
Optimize anti-sybil attack strategy: By optimizing the strategy, the risk of sybil attacks is reduced;
Client upgrade: More devices will be supported in the future;
Smart contract upgrade: Smart contracts can be upgraded in the early stage, and will be permanently frozen in the later stage;
Token exchange: v1 tokens can be exchanged for the new version of Ore 1:1 within 3 months, providing a smooth transition opportunity for holders of old tokens.
It should be noted that there are two major changes in the V2 version: the introduction of a new, more unplayable mining algorithm DrillX is to ensure that simple mobile phone and laptop miners will never be unable to mine due to high prices; the introduction of staking to increase mining rewards, prompting the creation of demand to decrease, and incentivizing miners to hold rather than claim and sell to maintain price stability.
But judging from the current discussions in the Ore miner community, Ore V2 is not as attractive as V1, and the introduction of staking has not generated the returns that miners want.
In Ore's Discord, miner @Bb849 was surprised by the price plunge of V2. He wrote, "I don't understand why the price has plummeted. There are not enough Ore to dump. We (miners) may have created about 4,000 Ore, but all of these 4,000 have been staked."
@Junlerotg.xbt replied to Bb840 below, saying that many uninformed buyers overbought Ore before V2 was launched, and they started selling it because they suffered losses in the current market. This conclusion was supported by many other miners in the V2 discussion area. Other miners pointed out that V1 holders may also upgrade to V2 and sell it during this process. After all, the mining cost of V1 is lower - but this part is not much.
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