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Bitcoins / Breaking News

Bitcoin Gold clarifies pre-mining

When Bitcoin Gold was first discussed prior to its launch, confusion ensued in the cryptocurrency community with users trying to determine what exactly it was that Bitcoin Gold meant by “pre-mining”. The confusion stemmed around the definition of the term and what it meant the new blockchain was attempting to do when it came to mining the new coins.

A final clarification on this issue came through Bitcoin Gold’s website. According to the full, detailed explanation given on the site, the pre-mine was actually a post-mine as it didn’t occur until the fork had been finalised. After the fork completed, 100,000 coins were then mined by the development team. The rapid mining process was of approximately 8,000 blocks worth 12.5 BTG per block mined.

According to the developers, the vast majority of the pre-mined coins have been put in an “endowment”, which will then be used to develop and look after the delicate ecosystem of Bitcoin Gold. Of the 100,000 coins that were mined, 5% was used as a bonus for the team behind the development work. Between the six key developers, this equates to about 833 coins per person. Not much has been said about this payout, apart from a brief acknowledgement on the Bitcoin Gold website that states the bonus was given as a reward for their key roles in getting the project off the ground in the months prior to the launch.

The 95% of the initial currency that wasn’t given to the developers as a bonus has been divided into time locked wallets. 60% of the coins are locked up to be released in three years’ time, while the remaining 35% has been put into immediate use to help build and maintain the platform.

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Frances is a writer for Crypto Daily, and she is responsible for bringing you the latest news on everything that is related to the Crypto world. She has a keen interest in Cryptocurrencies, and has many years of experience writing in all different roles. She is incredibly passionate about writing, and this combined with her interest into the finance, and virtual currency sector means that you are kept up to date with all of the latest news and information regarding all cryptocurrencies.