Mining centralization

Will this be addressed? Will there be a call for more pools? Will there be any support by the team to open more pools? I think: this is hard to repair later on and it already does damage to the reputation of the project. At electroneum f2 did suppress random blocks of other pools and started to mine only empty blocks with no transactions soon they had 50%



Can you explain in greater detail what the problem is that you are addressing?

Also, what do you think are the actionable steps that we can take to resolve it?

I am willing to help with whatever.

centralized mining is the biggest enemy of every crypto coin. a 50% pool is in the position to supress all other blocks and all transactions. because there is no longer any “consensus” in the network, but everyone has to follow the larger pools, whatever they do. From an investor perspective: I don’t invest in a so called “decentralized” system when there is a single big entity wiedling lots of control over the ecosystem. to invest I would like to see everything spread out as thinly as possible.

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I don’t know what the answer to this is. It seems like this is something that is completely out of the control of anybody to even out. How can that be accomplished? Obviously that is the intent.

they should have provided a minimal but complete reference stateless pool implementation. there would be 100 pools by now. But this way they get lots of donations from the pool cartel. because the cartel needs to solidify it’s position.

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I know that you do not think this is intentional. I think there was not much calculation and so this issue, which is solvable, materialized as an unintended consequence.

What are the steps to correcting the issue?

the inertia will make it very hard to correct

first of all: having as many pools as possible should be defined as a goal/milestone. currently the issue is not even on the table.


I’m not sure how this works exactly, but I will ask about how we can bring this issue to attention so we can take action to correct it.

Exactly. It is solvable.

thats a big USP, untapped.

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when verification is trivial, pool fees should be low. having the largest pool at 3% fee is a sign of a broken market or no market at all.


the largest pool acquired 1-2% of the emission (much more on top of that due to high payout thresholds), that’s concerning in my view.

I don’t think a reference implementation would have resulted in a different landscape. You still deal with economies of scale and access to cheap electricity is not a luxury for most, so even if you had many people deploying pools, mining would still be centralized.

That being said, the devs have been vocal about supporting an open ecosystem.

Also, there is an open source pool implementation already, why not rally behind it?


Unfortunately, the core devs don’t have the resources to work outside of the core protocols. If you feel that pool development needs more hands then by all means jump in instead of whining. Do you have any “skin in the game” or all I read is peanut gallery commentary?

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I do think.

no because the quality of the pools to choose from would be much better. competition means better products and lower prices.

I don’t whine. But also I will NOT open a pool.

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On a macro scale, I agree and there is definitely merit in having different open pool implementations. Still, I don’t see how a perfect pool market could form from the get-go driven by a reference implementation, with the available resources to the core devs.

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I think the root of the problem is because people that are less technically inclined (like me) see an example of a config file and use f2pool or even spark pool right away. It’s a shame they don’t think long term and want to earn their few cents quicker but that’s a big reason why small scale miners mine with large pools.

For the people using farms on f2pool, I have no idea. They should have the technical know-how and understand that they’re just hurting themselves and everyone around them by mining with such a large pool. I was supporting mwgrinpool but unfortunately it didn’t work out. I’ll need to find another pool and 100% will never use f2pool. As usual, herd mentality is a major issue with a decentralized currency.

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any idea what percentage of miners are Chinese? Perhaps it is as simple as Chinese miners mining at Chinese pools. Rallying the rest of the world may not even put a dent in it.

Anyways, i have no idea about the numbers, just spit-balling the idea.