Solana Network Feels the Heat as $ORE Miners Chase Lucrative Rewards
The rush to mine a new Solana-based cryptocurrency is clogging the network, but ORE's unique design and soaring price are attracting miners in droves.
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The recent launch of $ORE, a new cryptocurrency token on the Solana blockchain, has ignited a mining frenzy that is contributing to network congestion. Users are reporting difficulties getting transactions through, and many point to the lucrative rewards associated with ORE mining as a significant cause of the slowdown.
What is ORE Mining?
ORE mining stands apart from traditional cryptocurrency mining methods. Rather than miners competing to solve the same complex puzzle (as with Bitcoin), ORE assigns unique puzzles to each miner. Every miner who provides a valid solution to their puzzle within a set time period receives a portion of the $ORE reward.
This system aims for inclusivity, theoretically allowing anyone to mine ORE with a laptop or even a smartphone. The catch is that better hardware earns a greater share of the rewards over time.
The Economics of ORE
ORE maintains a linear supply growth of approximately 1 ORE per minute, totaling 1440 ORE per day. There is no maximum supply cap. Currently, one ORE is priced at a staggering $1880. With 1440 ORE issued daily, this translates to roughly $2.7 million in potential daily mining rewards.
The Impact on Solana
The rush to mine ORE has miners vying to pay high-priority fees to ensure their transactions are processed first. This competition for block space is a substantial factor in the recent Solana network congestion. While ORE mining may not be the sole cause, it is certainly a significant contributor.
Feedback on Twitter
Many miners have taken to Twitter to express their appreciation for ORE's economic design and the strong incentives it offers. This positive sentiment further fuels the ongoing mining boom.
The Solana Foundation and ecosystem developers acknowledge the congestion issues and are working towards a fix.