Since the successful implementation of DataHighway (DHX) token and Bitcoin (BTC) mining on DataDash, MXC has proven over time that low-power, multi-token mining is not only attractive, but also easily accessible for the mass public. However, the challenge of sustainability and greater transparency has still remained. MXC’s newest improvement implementation, MetaXP, responds to this challenge in an innovative way. This article provides an introduction to MetaXP, its applications and implications, and delivers important insights for the current and future miners within the MXC ecosystem.
MetaXP is MXC’s answer to providing sustainable operations for the miners, while injecting fresh innovation into the cryptocurrency mining ecosystem. The core of MetaXP lies in increasing the importance of multi-token mining that can be sustained over a longer period of time without adding any burden on the shoulders of miners using the M2 Pro. The multi-token mining model prior to MetaXP requires users to make significant decisions in order to begin their multi-token mining operations, in the form of predominantly bonding MXC tokens to obtain sufficient mPower. Consequently, this model resulted in users having to take big steps and jump through technical hoops to begin multi-token mining. The new model brought through MetaXP smoothens the steps and removes the technical hoops by providing a seamless transition for M2 Pro miners to convert over time from mining solely MXC tokens to mining additional assets such as BTC, DHX, and DOT. The impact for the end users will primarily be a change in the composition that formulates their mined assets, as their M2 Pro miners automatically evolve into multi-token mining without requiring significant commitment from the users.
Increasing the Variety in Mining Assets
It is imperative for all users to understand that MetaXP will have a direct, increasing impact on the variety of assets mined M2 Pro while having no direct impact on the total mining power of the users. What this implies is that users should expect a change in the composition of the mined assets in their daily mining operations, not to be confused with a change in the mining power of their individual mining operations. Ultimately, users will continue to be in full control of their mining power while enjoying automatic transition into multi-token mining. To simplify, MetaXP affects the composition of mined assets while factors such as Miner Health, Miner Fuel, and miner technical factors will continue to determine the amount of the mined assets.
An innovative factor within the increase of variety in mining assets is the auto-optimisation of allocations. The optimisation factors are mainly sustainability, transparency, and rebalancing of risk profile.
More Sustainable Mining Operations, for Longer Time
As MetaXP optimises the allocation of mined assets, an increasing number of users will begin mining DataHighway (DHX) tokens along with MXC tokens, and BTC (applicable to users who have bonded MXC in BTC mining). This leverages the nature of assets and its emission to introduce increased sustainability in mining operations. For example, DHX boasts a large majority of tokens in lock up that can only be unlocked, emitted, and distributed in a fixed amount of 2500 DHX per day to miners. The fixed emission amount regardless of the number of miners controls how many DHX tokens enter the market on a daily basis, theoretically contributing to token stability and maintenance of long-term valuation. In turn, this makes DHX mining more attractive to miners, thus strengthening the DHX network. A mirroring model is Bitcoin mining, in which fixed mining block rewards attract more miners, contributing to the scarcity of the asset, resulting in an increase in the spot price of BTC and the long-term outlook of the asset.
An opposite model is MXC mining, in which all of the MXC tokens are in current circulation within the market, and requires the foundation and the network users to purchase MXC tokens from the market and distribute them to the miners. While this model reduces the peer-to-peer competition of the miners, it increases the bi-directional flow of tokens as more users join the mining operations.
MetaXP takes both models into consideration, and produces a combined solution in which miners begin with low-P2P-competition mining of MXC, then transition to highly sustainable mining of DHX. Thus, MetaXP provides the best of both worlds in terms of short term operations and long term sustainability. Meanwhile, users will continue to benefit from mining of assets such as BTC in the current, and DOT in the future through bonding of MXC tokens.
Increased Transparency through On-Chain Mining
Currently, mining of MXC, DHX, and BTC on the DataDash mobile application is known as “off-chain mining”. In off-chain mining, users are unable to verify their own mining operations directly on the blockchain. This is due to MXC serving as the intermediary in the users’ mining operations, allocating network resources on behalf of the users and distributing the token accordingly. While this approach has allowed MXC to build the world’s strongest IoT network on Web 3 in a rapid manner, it did come at the cost of decreased transparency in the miner operations. MetaXP proposes a revolutionary change in this regard.
As MetaXP transitions M2 Pro miners from mining solely MXC to mining additional assets such as DHX, mining will become increasingly on-chain. As miners earn DHX, the mining activity will be verifiable on the blockchain, providing additional transparency for DHX miners to not only track their own mining operations, but also monitor mining operations of other miners to ensure that the mining competition is as fair as possible.
Due to the nature of the network operations and placement of MXC foundation as the intermediary, MXC and BTC mining will continue to be off-chain. However, the transition to on-chain mining of DHX is set to become an important step towards increased transparency within the mining operations, ultimately levelling the playing field of peer-to-peer mining competition.
User-Oriented Mining through Risk Profile Rebalancing
Cryptocurrency investors and users alike have at one point heard about the Dollar Cost Average (DCA) approach. The DCA model essentially argues that a fixed dollar amount investment in fixed time term would lessen the impact of periodical volatility of the asset, thus allowing the user of the DCA model to be at par with the overall market sentiment. The DCA model has long been regarded as one of the safest, most conservative approaches to extremely volatile markets such as cryptocurrency. The M2 Pro’s mining model has been similar to the DCA model, in a sense that the daily average mining amount was calculated first in dollar value, then converted into cryptocurrency assets. This has been the case for both MXC and BTC mining.
MXC believes that multi-token mining should not only be sustainable and stable, but also full of potential. Since the initial mining model of M2 Pro has mirrored the DCA approach, it can be leveraged to rebalance the risk profile of the secondary mining model in which an incremental amount of risk can be put on in order to achieve both stability and potential.
The additional approach to be paired by DCA is the Generalised Auto-Regressive Conditional Heteroskedasticity model, more commonly known as GARCH. Using GARCH is particularly advantageous in the cryptocurrency market, as the market shows periods of clustered volatility in the form of bullish and bearish trends. Moreover, unlike DCA, GARCH is able to project future volatility.
Using GARCH, it can be concluded that the projected deviation for MXC per cluster tends to fall within the 0.5 to 0.7% range, while the projected deviation for DHX per cluster falls within the 2.0 to 4.0% range. For comparison, the projected deviation for BTC per cluster is between 0.2 to 0.4%. Higher GARCH value supports the common conception of “high risk, high reward”. Since M2 Pro’s mining model reflects the DCA model, the lower risk projected by it allows for the M2 Pro to take on mining of assets with higher GARCH value, namely DHX.
Through this rebalancing, users will have increased exposure to future potential of mining with M2 Pro. Moreover, users will always be able to decide how much of risk they are willing to take on by depositing DHX, which in turn will determine the upper cap of how much DHX they can mine per day.
MXC’s Step Towards DeFi
The introduction of MetaXP without a doubt highlights the importance for all M2 Pro miners and the extended community of the MXC ecosystem to have a balanced exposure to both MXC and DHX tokens. The reason for this is in MXC’s sight to increase the offerings of DeFi products to the community.
DHX can be understood as a proponent of MXC within the larger Kusama and Polkadot ecosystem. MXC plans to build a stronger bridge between itself and DHX, and offer various DeFi products to the community. Both MXC and DHX will be an integral part of these DeFi products, and thus M2 Pro miners are projected to have an advantageous standing in preparation for the upcoming DeFi products in development.
More news on the DeFi product offerings will be revealed in the near future.
In summary, MetaXP will gradually shift the composition of the mining assets for M2 Pro. This improvement will bring forth increased sustainability, transparency, and control for the miners. Some aspects of the M2 Pro will remain unchanged by MetaXP, such as bonding MXC for BTC mining and the upcoming DOT mining. However, to prepare the miners for MetaXP, the implementation process will be gradual in order to provide ample time for miners to choose their own mining path, and users may expect partial subsidy in the form of DHX token airdrops.
MXC Foundation strongly believes that MetaXP — developed in conjunction with some of the brightest leading minds in the industry — will unlock even more opportunities for the M2 Pro miners, setting them up to continue to mine for generations to come.
MXC Foundation cordially invites you to join the next-generation multi-token mining revolution.