"To begin with," he said heavily, "you've got to understand that a seagull is an unlimited idea of freedom, an image of the Great Gull, and your whole body, from wingtip to wingtip, is nothing more than your thought itself."
The young gulls looked at him quizzically. Hey, man, they thought, this doesn't sound like a rule for a loop.
Fletcher sighed and started over. "Hm. Ah... very well," he said, and eyed them critically. "Let's begin with Level Flight."
Richard Bach, Jonathan Livingston Seagull
How does Minto Staking and Autofarming work?
The Minto project combines Bitcoin mining at real mining facilities that utilizes Proof-of-Work (PoW) technology, with DeFi asset management capabilities, where Proof-of-Stake (PoS) technology is used.
You've probably heard the already slightly forgotten news of how Ethereum migrated from PoW to PoS under what’s known as The Merge.
Regardless of Ethereum’s successes or failures, Minto is not going to migrate anywhere, but continues to develop both in the PoW, increasing its hashrate, and in the PoS, offering new products and opportunities. Today we would like to elaborate on the concepts of staking and autofarming.
How does staking work?
No matter which blockchain (PoW or PoS) you use, in order to earn money by mining, you need to participate in the generation of new blocks and confirmation of transactions they include. It sounds too vague, but let's not rush it.
In PoW, you have to perform complex calculations to find the name of the encrypted block. If successful, you will fill the found block with transactions, receive a mining reward and a commission from each transaction it includes. This is how mining works in general and Bitcoin mining in particular (the reward in the Bitcoin network today is 6.25 BTC per block).
In PoS, the network itself chooses to whom to entrust block filling, using a special algorithm. Different PoS coins may have different algorithms, but they all have one thing in common - to varying degrees they take into account your share of the total number of staked coins. This is a kind of mining pool, but it is comprised of capital, rather than of equipment. This is how a great many coins work, and now Ethereum does as well.
Mining is somewhat similar to gold mining - the more equipment you have, the more gold you will be able to mine. And staking is like a bank deposit - the more funds you take to the bank, the more you will get back with interest. At the same time, you don't care how the bank uses your funds.
How Minto will help you to do both mining and staking
Minto mines Bitcoin on its own mining hardware and earns mining rewards. This is PoW. However, Minto goes beyond PoW and offers you to use the project mining power, indirectly owning it through BTCMT hashrate tokens.
100 BTCMT in your crypto wallet is 1 TH/s of hashrate without the need to maintain equipment and pay for electricity. By buying BTCMT hashrate tokens, you buy the mining power of the Minto mining farm, and by staking them, you start to mine Bitcoin! Your staked BTCMT tokens are not only the analogue of PoW hashrate, but also of the PoS capital share, addressed when distributing rewards.
By unstaking and selling BTCMT, you reduce your participation share, and hence rewards. But maybe you have found a better opportunity to earn money? Take your time, Minto offers to increase profitability with another DeFi feature. It’s Autofarming!
How does Autofarming work?
Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it”. Compound interest is the accrual of interest not only on capital, but also on the profit earned with its help.
By staking BTCMT tokens, on the second day you will receive your first mining reward. From this day on, you will receive mining rewards in Bitcoins daily. Every day you can withdraw the earned profit to your crypto wallet and accumulate it there. However, in a sense, this money will lie idle, while it should be working.
Minto wondered what would happen if the daily profit was immediately converted into BTCMT tokens and staked, so that it would work on a par with the initial capital?
In the article about the project's first hundred days, we have thoroughly analyzed how much the profitability of conventional staking differs from staking with compound interest. Today, as the number of staked BTCMT tokens increases and the Bitcoin exchange rate falls, both yields are no longer as impressive, but they still differ by hundreds of basis points!
In May 2022, Minto launched an automatic algorithm for converting rewards into BTCMT tokens and their staking. It was done manually in the past, but now it is enough to select the desired frame on the site to get maximum profitability. This technology is called AUTOFARMING. Choose Autofarming to be sure that you will get the maximum possible profit from your BTCMT tokens.
Minto is a real Bitcoin mining
In the case of Minto, it is very important to remember that both Staking and Autofarming are based on real Bitcoin mining. This is a project where money doesn’t appear out of nowhere, it is earned as a result of the incessant work of mining hardware, part of which you can own at the rate of 100 BTCMT = 1 TH/s of hashrate.
Staking BTCMT tokens makes your mining income proportional to your BTCMT share in the staking pool multiplied by a so-called multiplier. (Since the income is paid out from the entire project hashrate, and only a part of the token issue has been staked, you also receive income from the tokens that no one owns yet. The multiplier allows you to estimate the real profitability, which is much higher).
Autofarming allows you to maximize your profit by automatically staking daily mining rewards converted into BTCMT. In fact, Autofarming is Bitcoin mining, during which you buy a new miner for each Bitcoin received and immediately launch it into operation.
The Minto mining farm
Get results with Minto
So, the Minto project is based on Bitcoin mining and uses all the features of DeFi so that you can manage your assets as efficiently as possible.
In order to understand what Minto is, buy some BTCMT tokens, stake them and get the first mining reward. Now you can calculate the profitability, including that of Autofarming, and understand how much BTCMT you need to earn a specific amount.
Minto is constantly developing and offers new interesting ideas. Follow Minto news, buy BTCMT tokens, stake them, and use Autofarming to achieve the best financial results.
Join Minto and mine Bitcoin with us!