Ore Supply Cracks $389k in Daily Revenue, But Can it Last?

The Ore Supply mines continue to yield incredible wealth for Solana’s Proof-of-Work advocates, generating new daily highs in revenue generation and solidifying $ORE’s position as the network’s chosen SoV.

While the endless stream of green candles and exploding revenue suggests that miners are reaching max euphoria, supply metrics indicate that $ORE tokenomics might be more sustainable than previously thought.

Can Ore Supply’s deflationary mechanics continue to keep up with accelerating demand?

The $ORE Rush

Ore Supply has been on a biblical run. After re-launching its new mining protocol on October 22, Ore has enjoyed exponential growth. Ore’s revenue is consistently recording new highs almost every day, peaking at $389k on November 6.

With 100% of all protocol revenue being allocated to token buybacks, $ORE value is returning to levels not seen since August 2024. 

Solana’s favorite native store-of-value has recently reclaimed a $100M market cap, driven by hopeful miners flocking to the app in search of the network’s “Hard Asset”.

Miners are committing more $SOL to the protocol than ever before, with each minute-long round attracting over $3,500 in deposits. But despite $ORE’s soaring price and the protocol’s surging revenue, not all miners are striking value. The app’s live chat feed is filled with frustrated depositors, who are struggling to get lucky in what is ultimately a game of chance. 

Seeking to take advantage of Ore Supply’s surging popularity, more technically-inclined miners are starting to deploy competitive programmatic mining algorithms. However, it's still uncertain if this will dramatically change the economic landscape, with operators lauding the system’s balance and admitting the “edge” provided by algorithmic RNG is “absolutely tiny”.

Weekly Net Emissions Stay Negative

After watching $ORE rip a 20X move in a matter of weeks, market participants are naturally skeptical about the token’s sustainability. With over 1,300 $ORE, currently valued at $3.5M, being minted every day, it’s uncertain whether $ORE will be able to prove itself as a reliable store of value long term.

As a countermeasure to inflation, Ore Supply allocates 100% of all protocol revenue to $ORE buybacks. 90% of purchased tokens are burnt, while the remaining 10% are distributed among stakers. 

So far, Ore’s deflationary mechanics are working. Dune Analytics data suggests that $ORE burn are sufficiently offsetting emissions. Over the last 7 day's mining, net $ORE emissions sit at -631, decreasing the supply by 0.02% per day.

While a relatively neutral emission flow suggests that economic model could remain stable, Ore Supply’s revamped mining protocol is still in its infancy. With prices soaring and the USD value of emissions distributing millions on a daily basis, miners may be more likely to sell their freshly mined $ORE, rather than holding it long-term. 

Staking $ORE for passive rewards may offer greater incentive to hold, but only time will tell if the network’s favorite store of value can accomplish its vision and solidify itself as Solana’s ‘hard money’.

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