Updated: Jul 2, 2021
Host: Mohammad (Mo)
Transcriber: TavernSide Gaming
Mo: Welcome everyone, this is Mohammad from MXC. This is the beginning of my new series: 1 on 1 with Mo. Today, I will be interviewing Siwon with your hot questions. So, let’s get into it.
Mo: Welcome, Siwon, and thank you for joining us today.
Siwon: Hey Mohammad. Yeah, I’m definitely happy to be here. I see that, you know, we have a lot of questions. So, I’m really excited to get through them. Let’s get started.
Mo: So, I have the first couple of questions from Little Insects, and guess what? They are regarding Miner Health. So the first question is, “How does miner health impact base earnings?”
Siwon: So I understand there are a lot of questions in regards to miner health. One thing I would like to make clear about miner health; this is about giving our supporters the freedom, and essentially the power, to decide how much they earn. You look at other mining protocols and a lot of them are involved in halving. DUring the course of halving, somehow all miners have to unanimously accept that they are going to earn half as much. You know, we thought about what are some ways we can bring this about in an organic way, but at the same time, not dictate how much somebody should or should not earn. And this is why we brought miner health. With miner health, you can decide what you want to do with MXC, and how much you want to earn therefore. You know, let’s address the question from Little Insects. How does miner health impact the base earnings? The Miner Health will have an impact on the base earnings and will determine how much you earn. But the fact of the matter is; what determines miner health? It’s you… you do. It’s essentially what you do with your miners. So, will it impact base earnings? Essentially, yes, but it is you who is affecting base earnings. So, they are your tokens, it’s your miner and you can do what you want to do with it. We are not going to force halving or something like that on anyone.
Mo: Little Insects: So, “What factors influence miner health, and what weights can you assign to them?”
Siwon: The factors that make up the miner health, you know, you can look at it in two separate ways:
The first one is essentially what you do with the mined tokens.
The second is what you do with the miner hardware itself.
So of course one of the factors is essentially how much fuel or MXC tokens you have in it. But there are also other factors, such as altitude, how close you are to other miners (proximity), orientation, GPS signals, and umm, essentially the reliability of your miner. So in terms of the way.. I can actually give you very factual numbers right now. So, in terms of proximity, or how close your miner is to other ones, that is going to affect 7% of your Miner Health. With reliability, which is essentially a binary number, right. So, it is whether you are reliable or not reliable: that is 20%. With GPS signal, that is 10%. With Altitude, you know how high or low your miner is, that is 5%. And of course the rest (58%) is about miner fuel which is what you do with the tokens. These are the numbers that make up the weights of miner health.
Mo: Little Insects: “Will the depleted fuel replenish over time, and how can we bring the fuel back to 100%?”
Siwon: Well, once again, this is entirely dependent on you. For a lot of people they might want to keep the Miner Health to 100%. For some people they may want to do something else, right. For example, they may want to take their MXC tokens and do something else with them. You know, maybe they want to stake instead of mining all the time. So that is completely up to them. So, to bring it back to 100%, well, you would have to look at what makes it 100%. Is it reliability, is it GPS signal… you know these are things that only require a quick fix. But you know, if it is your tokens well; you simply top up your tokens as miner fuel and it will go back to 100%. But once again, this is just not just about fuel also. You also have to look into, ultimately, it is how your miner is performing. These are all some of the things you have to look at.
Mo: Ok, moving forward. I have some questions from Re.”How does selling MXC, and taking profits on occasion, affect the fuel tank?”
Siwon: It’s not necessarily that you're taking profit or that you are selling MXC that is affecting your tank. It’s the fact that you are simply taking your miner fuel out of the fuel tank which is affecting your fuel tank. Maybe you are taking out MXC out of the fuel tank to do something else. Maybe you don’t want to sell it, maybe you want to stake it somewhere, maybe you want to potentially, you know, do defi lending. Those are the actions that are going to affect the fuel tank, but essentially, you are making your own decisions to figure out through which path you want to earn MXC. And, you know, do you want to sell and take profit on occasion. You know, I think… to be completely honest, I think when you just replace MXC from this question with BTC. It is like someone, “You know when I sell BTC bit by bit to realize profi…” That’s simply not really how crypto works. You know, yes, you can realize profit bit by bit, but this should be about investment. So you invest however much you believe in. Then you need to give it some time to grow. It’s not like a small pigg-ybank that you can go in $5 here or $5 there to pay for dinner or something. That’s just not how it works. So, it does need time to grow, and you need to let that happen. If you are not letting that happen, then of course the growth will not be there. Once again, it’s about decentralization so maybe you want to do that. In which, you are free to do so, but your fuel tank will be affected, yes.
Mo: Daniel: “How long does it take for fuel to get back to 100%?” and, “Does it mean that we need to mine the same amount of MXC?”
Siwon: Well, Daniel, you tell me. How fast do you want to top off your fuel? Once again, this is proof of participation. You know, it’s about your participation in the ecosystem, and therefore, you are directing your own earnings. So, let’s say that this week you want to withdraw some MXC to do something with it. That’s perfectly fine. Maybe next week, you want to top up your fuel again to get your health back to 100%, again that is perfectly fine. It’s up to you. So, how fast does it take? You know, if you have fast transaction time, if the Ethereum blockchain is not congested that day, maybe it will take as fast as a couple of seconds. But, will it replenish back by itself? No, because this is participation and you have to participate for that to happen. Once again, it is completely up to you. So, you can decide whether you want to participate through miner fuel. Or that, you maybe want to do less with miner fuel and more about, maybe staking then that is also completely up to you. We don’t dictate that. You decide.
Mo: Geert: “If you are mining at 0%, what’s your base income?”
Siwon: Well, first of all, there is no real base income when you’re mining, right? Because it entirely depends on how your miner is operating. Of course it is not that if your health is at 0% you will not mine anything. We are not saying of course you will mine a small portion. In terms of how much that portion would be, you know, of course it is going to differ on a daily basis, which is what we are seeing at the moment. So that is something you will have to see. So, you will earn something. You will not just earn 0%. So I think that is something, of course, that the main source of the concern was.
Mo: Geert: “Aaron said, having miners near each other will decrease your base income by a very small (amount). How small is very small?”
Siwon: Yeah, Aaron did talk about, you know, if your miner is close to others you will earn less. That is 100% true. So you know, we do have the proximity meters within the Miner Health. So, if your miner is too close to the other ones, then yes, you will earn less.
Mo: Ok c’mon. We need facts. Come to us directly.
Siwon: Ok, so you want facts, then I’ll give you factual numbers. It doesn’t get more factual than that.In terms of the actual numbers of proximity we are looking at the range of around 50 meters. So, if your miner is around 50 meters of another miner then this affects you. If that is not the case then this does not affect you. In terms of how small is small. The actual percentage, like I mentioned before, is the proximity measure; which is 7%. That is 7% of your miner health. That is essentially the actual number you would be looking at. It’s essentially 50 meters, which is a very short distance. So, I don’t think a lot of people will need to worry about this, but if you are worried about this, then sure. Those are the numbers that you can refer to.
Mo: Oh, so here is an interesting question from Kevin Lewis, “When will BTC mining be open to everyone?”
Siwon: My answer is that, you know, it really depends. Low power BTC mining is not something that’s easily done. That’s why we are incredibly proud of what we have accomplished. But, you know, the reason that we currently have DKP2 and that we are currently contacting the winners, or let’s say the chosen test group from that, is because we need their participation to extensively test a prototype we have to make sure it is functioning the way it should be. To make sure it can be sustainable on a long-term basis. Moreover, to make sure it does not have any unforeseen negative impacts on the earnings potential of our community and participants. So, I can’t guarantee a certain date because we are not going to be releasing something that is not 100% satisfactory to our very high standards. Until we have extensively tested it. I also understand you wanted some facts before, so you know, I’m going to give some facts. I’m almost quite certain that we can roll out BTC mining for everyone around Q4 of this year. So that is something that looks quite realistic. But of course, this requires the analysis of the test results from DKP2.
Mo: Ok, so moving over from Miner Health Luke Grossman wants to know, “How many different NFTs will there be?”
Siwon: Well, in the beginning there is only 1 type of NFT. The reason I say only 1 type of NFT, is because within one type of NFT there will actually be, technically there will be two different NFTs at the same time. So one is the actual governance token. The other only is, let’s say, an IoU version of the governance token. The reason we are taking a 2 NFT taken to the same governance token is simply that we do not want to offer a governance token if there is not a market made for it. Therefore, the IoU version of the NFT, of the governance token NFT, will be utilized to make the market for it. Then, when the market has been made we are going to issue the governance token NFT to those people that qualify. Of course the qualifications measures are in the article that was recently published (https://medium.com/mxc/mxc-update-dao-substrate-inception-d4e9255edd7). So, I strongly suggest that people read that and they can either ask me or they can ask the community and I’d be more than happy to answer that. That’s essentially the first plan. Of course, throughout the entire, you know, timeline we may be releasing new types of governance token NFTs. Due to the simple fact, you know, if our community has been experiencing exponential growth. That means the number of people that we do onboard into the governance system also has to grow. One thing about NFTs is that you can only, in the beginning, you can only mint a certain number of NFTs. So therefore when we do grow outgrow that governance capacity, we do need to bring other people into the governance council. Therefore, at that time, we are going to issue the second, let’s say addition to the governance token NFT. This will be distinguished. That is essentially how it will be.
Mo: Luke Grossman: “And how will MXC earnings work with NFTs?” Siwon: With the governance token NFTs it is quite simple. Think of it like holding a dividend paying stock, right? So you are holding this and you are getting paid a dividend. So, where is this dividend coming from? Well, it is coming from the MXC ecosystem fund. Now, how is the MXC ecosystem fund getting topped up? It’s because as MXC continues to offer different products into the market for people to start using it. This usually generates some sort of revenue or fee which goes into the ecosystem fund. That profit part, within the ecosystem fund, well we can’t give 100% of the profit of this fund since the netsystem ecosystem net balance would be 0. So, a portion of that ecosystem will be paid out in the form of dividends to the people who are holding the governance token NFTs.
Mo: Here is an interesting one from Paul, “Amazon Sidewalk came live on June 8th in the US; how will it impact MXC and smart city partnerships in the US?”
Siwon: Amazon Sidewalk is an exciting example of how many different cities and governments are beginning to really commit to different smart city programs. You know, of course, throughout the past… especially the past year and a half during the pandemic, I think a lot of the governments had a lot of time to look into their city infrastructure to look into the different ways to serve their citizens in smart and innovative ways. So, of course we believe that this will motivate other cities and governments around the world to do the same. When they are looking for these kind of solutions MXC will be there because we do have a very strong working model around the word; such as in China, Korea, Australia, Europe, the United States. So we do have very strong working models with governments and with enterprises. So, we believe that when cities are looking for solutions that we will definitely pop up. They will definitely have other government buddies to go up and hear very positive feedback. So, we are very confident that this will contribute to how MXC grows, and how MXC can genuinely impact people in the real world in a very profound way.
Mo: Sharp Harp would like to, “Will the 4th antenna on the M2 pro ever materialize (When is the 4th antenna coming live?)”
Siwon: Well, the 4th antenna on the M2 Pro, this one you can actually order separately. I mean, it’s not on our website because we do not genuinely think you would have a high necessity for it. However, if you have a high desire for it we cannot stop you. Of course, you can order it if you really want. Make sure to just send us an email or request and we will be more than happy to fulfill it for you.
Mo: Mark had a lot of questions. Choosing a few which have not been answered yet, “Any updates on the timescale for liquidity mining?”
Siwon: So the liquidity mining. Of course there are two separate aspects, right. We have talked about two-sided liquidity mining which can be set up pretty easily. The reason it is taking some time is because we do want to introduce 1-sided liquidity mining; which we believe is very innovative and very inclusive to everyone. So, the timeline is essentially that the 1-sided will hopefully be up and running by August/September. So that is kind of our timeline. In terms of the actual 2-sided liquidity mining, we can launch this pretty quickly but we have to make sure that this does not have any negative side effects. I don’t think it will, but we of course have to do due diligence with every piece of new innovation which does get introduced to the MXC ecosystem. So, you know, we of course will have to look at that and we are currently doing that now. So, we believe the two-sided liquidity mining program will be introduced quite soon; within a matter of just a few weeks. Perhaps in August/September the 1-sided liquidity mining program will be live for people to take part in.
Mo: Mark, “Any plans on changing the withdrawal fees for BTC from 700 MXC to maybe a BTC figure instead?”
Siwon: So the withdrawal fees there are not based on the asset, rather it is based on your account;. Which is the DataDash account. Because of security, we do use Cobo Custody as a custodial wallet (https://cobo.com/custody). This is why there is this fee that’s coming in. So, can we change it from 700 MXC to something in BTC for just the BTC part? My answer is that, I believe it can be possible, but it is also not entirely up to us. We do have to have a conversation with the custodial services to make sure that request is accepted. If that request is, then of course it will be a reality. However, I just want people to understand that the fee is because of the custodial solution. So, therefore, it is largely due to the custody solution. So we do have to talk to them for this to happen. I can’t give a guarantee yet, you know that is my answer, but we will certainly try.
Mo: Mark, “When NFTs?”
Siwon: That is a question that I can believe very soon in terms of actual minting. I mean, we have showcased, of course, how the NFT would look like in the article. I highly encourage everyone to go there and check it out if they haven’t (https://medium.com/mxc/mxc-update-dao-substrate-inception-d4e9255edd7). When would it actually be minted? Well, that is something that we do have to into account different gas fees, ETH gas, data gas network, congestion. Thankfully though, the gas fee has been quite low for the past few days, so it seems like the perfect weather to be minting NFTs. Once those are minted, well I guess, that is when “When NFTs?” part is satisfied. Perhaps within the next few days even if the conditions are right. When would this be distributed to the eligible participants? That is something that I have publicized through the mathematical formula. They can take a look into that formula and then see, kind of, when they can expect to receive these NFTs.
Mo: Mark, “When socks?”
Siwon: I do recommend socks for everyone. They keep your feet warm during cold weather. Not socks when going to the beach because you don’t want sand in your socks. I don’t, I don’t understand this question, but that is my view on, “When socks?”
Mo: Yeah, I really couldn’t get it myself. Brian Allan, “Will DOT mining work the same in the future as DHX mining or MXC mining?”
SIwon: Of course, this is something that is a little out of my purview to answer. We do need to see how first the Kusama parachain auction goes and how that affects the Polkadot parachain auction. Then we can really look into what model makes sense. It is not completely up to us when we bring new tokens. It also has to make sense within that new token’s model and with their tokenomics. But, I am seeing how… because DHX is also designed to be a parachain, so I would say between DHX and MXC… DHX would follow more of the DHX model rather than the MXC mining model. In terms of the multi-token mining aspect, I believe it could also be closer to the BTC “mining” model. So, these are some conjectures, but not something I can confidently say at the moment. We do have to see how Polkadot does coming to live and how it does reaching stability.
Mo: Last question for today. Brian Allan, “When is the governance token/DFi dividend expected to be released per miner?”
Siown: Sure, so the governance token and the DFi dividends will technically be released when I can tell the community that we have successfully minted these governance token NFTs. Then, they will be live, right? So that is the time Zero. From there, as people can see from the article, then the eligibility time really starts. So, that is the moment people can essentially start to qualify or to start to build-up their qualifications to receive these governance token NFTs. So, that is when these will go live. Of course, these are based on individual qualifications, some people may receive these NFT tokens earlier than others. You know, it’s proof of participation. If you want to have these governance token NFTs sooner than others, you simply have to participate more than others. If you don’t necessarily care for it, then you don’t have to. We are not forcing this on anyone. This is completely up to you. That’s the power of participation.
Mo: Thank you, Siwon for all your answers. It was a pleasure to have you in here.
Siwon: thanks Mohammand for asking all of the questions, and of course thanks to the community. Yeah, let’s talk again soon.
Mo: Thank you everyone for joining the first episode of 1 On 1 with Mo. Make sure to give us a Thumbs up, like and share the video. Don’t forget to follow us on social media. Stay tuned until next time, good bye.