MIP 1: Lower MTR's production cost parity

Introduction

Dear Community,

This proposal aims to low the MTR’s cost of production thereby reducing the cost of parity in comparison to mining Bitcoin.

Background

When MTR was launched on July 4th, 2020, we have set the energy efficiency coefficient to 53W/TH, which was the mainstream BTC miners’ efficiency as the time. We also have a built in curve that halve this parameter every 18 months. Currently this number is around 38W/TH and translate to about $4.5 opportunity to BTC.

However with the global pandemic and disruption of supply chain. There is a major shortage of BTC mining hardware on the market. The overall competitiveness of BTC mining is not improving like the original Moore Law curve.

With the upcoming dApp liquidity mining launches on Meter, there might be a shortage of MTR tokens. We therefore, propose to restore the energy efficient coefficient to 53, which will change the cost parity to around $3.2.

The cost parity includes production cost of mining MTR + the opportunity cost to not mine BTC with the equipment.

Proposal Details

Increase the energy efficiency coefficient to mine MTR to 53 W/TH from the current 38 W/TH

Benefits

Increase in the energy efficiency coefficient will reduce the MTR cost parity from current 4.5 USD to 3.2 USD.

This topic is recreated. Original creation date was September, 2021. The corresponding governance proposal can be found here - Snapshot