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What is the veTokenomics?
What is the veTokenomics?
Nicholas Moritz avatar
Written by Nicholas Moritz
Updated over 8 months ago

GoMining has launched a new tokenomics system called veTokenomics. It provides token holders with the use of DeFi governance tools, reduces the supply of tokens on the market, rewards long-term investors, and aligns investor incentives with the protocol.

GoMining is a liquid bitcoin hashrate (LBH) protocol. The GoMining protocol acts as an ecosystem for issuing, using, and coordinating a community of tokenized bitcoin hashrate users. The bitcoin hashrate becomes liquid and tradable on the Ethereum/ BNB chains represented as NFTs issued by service providers. They provide power and other services necessary to mine BTC. The first service provider participating in the GoMining protocol is BMINE. 

Each NFT possesses metadata containing the amount of hashrate provided by this crypto art and its energy efficiency. 

Since the bitcoin hashrate requires its owner to pay for electricity, these two indicators directly affect the total amount of BTC mined.

Burn & Mint Process

The main principle behind the liquid bitcoin hashrate (LBH) presented in the form of NFT is that each digital miner has real computing power. 

That's why NFT holders pay the service provider that issued the digital miner for electricity. 

As per the Burn & Mint model, the smart contract burns all of the tokens received and right afterward mints new ones.

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