Chinese mining pool Poolin has partially resumed cryptocurrency payments to users who blocked hashrate tokens in the Mars protocol.
ERC20 tokens pBTC35A and pETH18C can be stacked to generate WBTC and Ethereum. Each such asset represents 1TH/s and 1MH/s of the respective network's computing power. Their holders are also credited with native Mars protocol tokens.
In June 2021, Poolin discontinued payments on hashrate tokens. The decision by the Xinjiang and Sichuan provincial authorities to halt cryptocurrency mining operations affected the company's operations, depriving it of the ability to receive the underlying assets for pBTC35A and pETH18C.
According to a fresh press release, all Poolin-owned devices have been "taken off the shelves". The company is gradually deploying equipment taken out of the PRC overseas. However, the cost of power at the new sites is significantly different than before.
When Poolin's bitcoin miners were in China, the electricity tariff was $0.058 per kW⋅h. Now it is estimated at $0.08 per kW⋅h (a mark-up of almost 38%).
This is also true for Ethereum miners. Here, the cost of electricity has doubled, from $0.075 to $0.15 per kWh⋅h.
In addition to the increased tariffs, the company has faced other challenges:
"Firstly, the sheer volume of mining units that need to be delivered to various locations, as well as the large upfront capital costs. Secondly, the recurring COVID-19 outbreaks which have affected international and domestic logistics. Thirdly, frequent loading/unloading, numerous stoppages and transport over long distances have resulted in damage to some units (more than 20% of units need to be repaired)."
The above factors have led to lower payments on pBTC35A and pETH18C. Poolin has introduced Depreciation Rate and Online Rate correction factors, which take into account the company's costs of relocating computing capacity and the number of devices in operation, respectively.
There are 214,601 pBTC35A in circulation, corresponding to 214,601 TH/s of bitcoin hashrate. Poolin has resumed operation with a computing capacity equivalent to 39,900 TH/s.
Statistics on the pBTC35A and pETH18C tokens. Data: Poolin.
According to CoinGecko, the price of pBTC35A rose nearly 25% to $85.6 in the last week. During the same period, pETH18C rose to $14.4 (+33.4%) and Mars rose to $0.017 (+2.5%).
Recall that bitcoin and Ethereum hashtags began to recover at the end of July amid a migration of miners from the PRC.
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