⛏️ Proof-of-Work Mining
Daikiri Finance is the first protocol to implement proof-of-work mining into its farming contracts, allowing miners to earn tokens by solving puzzles with their PC's CPU/GPU.
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Daikiri Finance is the first protocol to implement proof-of-work mining into its farming contracts, allowing miners to earn tokens by solving puzzles with their PC's CPU/GPU.
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Implementing Nakamoto Proof of Work into Yield Farming contracts enables a wider, more transparent, and trustless distribution of tokens that was only available to proof-of-work blockchains or it required implementing the system directly into ERC20 tokens. With Proof-of-Work Yield Farms, any token can be made mineable without needing to change the base ERC20-based token's code, thus enabling a new form of distribution.
Other distribution methods such as Airdrops, Initial Coin Offerings, Pre-sales, or even Liquidity Mining, can be Sybil-attacked and Insider-knowledge-attacked. A Sybil attack is a form of computer security attack in which one human pretends to be many humans with multiple computer accounts in order to manipulate a system in a malicious way. An insider attack is the use of insider information in order to secretly gain an upper hand or advantage during the distribution of a currency. ICOs and airdrops are highly susceptible to Sybil Attacks and Insider-Knowledge Attacks and there is no way to verify that all ERC20 tokens were distributed by the deployer fairly using on-chain data [1].
Proof of Work Yield Farming enables a mathematically fair and on-chain verifiable token distribution that combined with liquidity mining or other distribution mechanisms can help make a token's distribution trustless, scarce and decentralized.
[1] "0xBitcoin: The Credibly Neutral Mineable Token for Ethereum". 0xBitcoin.