Ending 2020 with a bang! October update.
October ended up being extremely productive, though results of this work will not be seen till November. Let me give you the highlights.
Bonus Rewards
As a community supported by governance board we have agreed to keep November rewards stable, and drastically reduce December and then first quarter of 2021 rewards:
While this makes providing liquidity less exciting, it is still much more profitable than getting interest on BlockFi. And it greatly reduces AGA and AGAr inflation, which will help with their price.
Digital Art
We are just getting started with Digital Art and NFTs. We are using our marketing funds to commission world’s top artists to design new Digital Art of our community and contributors.
It is important to note that the artists that we are working with are successful, sought after, that sell their art for thousands of dollars.
We are early with NFTs and Digital Art, but I can imagine that these pieces one day will be worth more than all the AGA and AGAr in the world. We are not playing here. You want to score some of these pieces. Please read below how you will be able to win high end Digital Art going forward.
AGAr Raffles
While we have only announced these, I expect to see much excitement around our raffles. We will hold them right at the time when people receive rewards and provide liquidity. They will reward people for holding AGAr, and will incentivize them to buy more.
We absolutely intend for these raffles to keep people from selling their Bonus Rewards the moment they get them.
Next Raffle
On November 21, Saturday morning PST we will perform our inaugural AGAr Raffle! We will raffle off three pieces of Digital Art — NFTs, and 2 x 1,000 AGA to five winners. One ticket can only win once, though wallets holding multiple tickets can win multiple prizes.
If you missed the announcement, please read it here:
Miner Profitability
I am oversimplifying this to explain multiplier effect on Bitcoin mining profitability with Bitcoin price increase.
As I write this, current generation Bitcoin miner generates $14 revenue, and uses $7 worth of electricity per day, leaving us with a $7 profit.
If Bitcoin price were to double quickly, our revenue would also double to $28, while the cost would remain the same $7, leaving us with $21 profit. 3x increase in mining profitability with only a 2x increase in Bitcoin price.
Over time other factors like difficulty, hardware and electricity availability, miner depreciation and electricity costs complicate this formula, so this is an oversimplified example, yet still valid for basic understanding why mining at certain times can be very profitable and exciting.
Latest Bitcoin Difficulty Adjustment was on November 2, 2020, and we are looking at 16% REDUCTION in difficulty. In other words, we are now mining 16% more Bitcoin thank we were mining yesterday!
Miners and OTC
Through our OTC program we are using our liquid AGA in our hot wallet to buy Bitcoin miners. Last two weeks of October were extremely busy as we bid on equipment from a bankruptcy sale (we did not win), received a OTC orders for AGA, and executed multiple orders for Bitcoin miners.
As we are dealing with heavy, complex electronic items, logistics are important and I am careful not to share too much before our equipment is mining. Yet, I want to share that we are making progress.
Acquiring Bitcoin mining equipment, that is efficient, and profitable is difficult and we have been lucky to secure the orders we did!
We are working hard to greatly increase our mining hash rate over the next three months and we will be sharing exciting details once the miners land in USA.
TLDR;
Reduced Bonus Rewards will reduce AGA and AGAr inflation while raffles and awesome Digital Art will add value to AGAr. AGA mining revenue on-track to greatly increase by end of January and total profit will follow.
