Original title: Solana users are spamming transactions to earn Ore tokens
Original source: DLnews
Original author: Matt Hougan
Compiled by: Mars Finance, Eason
Summary:
Solana users are spending thousands of dollars mining Ore tokens.
Ore isn’t actually a proof-of-work cryptocurrency — but its design makes it look like a gamified airdrop.
At its peak, over 16% of all transactions submitted to the Solana blockchain were ore mining transactions.
Solana users are submitting thousands of transactions to mine Ore — a new cryptocurrency that distributes tokens in a way that mimics the mechanisms of proof-of-work blockchains like Bitcoin.
Ore launched its second version on Tuesday, and in the 17 hours since its launch, users have submitted more than 4 million transactions trying to mine it.
Notes to Editors:
For those who want to know more about Ore V2.0, please read the Mars Finance article "Detailed explanation of the innovation of Solana Hackathon champion project Ore v2"
In a race to acquire the ore, these miners spent thousands of dollars worth of SOL tokens to process their mining transactions.
At its peak, over 16% of all transactions submitted to the Solana blockchain were ore mining transactions.
Proof of Work is a way of processing blockchain transactions that requires miners to expend effort to solve a puzzle. Those who successfully solve the puzzle will gain the right to verify a set of transactions and be rewarded with some tokens for their efforts.
Although Ore says it uses proof-of-work to issue its Ore tokens, it doesn’t actually validate transactions like a proof-of-work blockchain. After all, it’s not a blockchain — it’s the Solana token. Its PoW-style puzzles work like gamified airdrops.
“Ore provides each miner with a personalized computational challenge,” the project explains on its website. “As long as you provide a valid solution to your puzzle, Ore guarantees that you will receive a portion of the supply.”
The tokens are selling for about $450 each on decentralized exchanges, netting some miners thousands of dollars in revenue.
Its creators say it will become “the native money of the internet.” But since dollar-backed stablecoins like USDC are already popular, Ore may have a hard time competing.
The rush to buy high-value ore tokens has also caused problems for some users. About 8% of mining transactions have failed.
This isn’t the first time Ore has sparked a mining frenzy on Solana.
When the project launched its first version in April, the resulting transaction spam temporarily clogged Solana, preventing other users’ transactions from processing.
This time around, the problem appears to have been resolved.
Ore launches in April 2024 with a maximum supply of 21 million tokens — modeled after Bitcoin.
It is led by an anonymous developer named Hardhat Chad, who plays the role of a miner foreman.
“As long as you provide a valid solution to your puzzle, Ore guarantees that you will receive a portion of the supply,” its website states. “Since no miner can be censored by the network and all valid solutions are non-exclusive, starvation is avoided.”
“This has never been attempted in the history of cryptocurrency and is only possible due to recent breakthroughs in high-performance blockchains like Solana.”
Ore has no venture capital backing and won the $50,000 Solana Renaissance Hackathon in May.