Sample Hardware Specifications & KPIs of envion’s MMU
We have calculated the total ROI of envion’s proprietary mining operations to be more than 161%
Based on an exemplary MMU setup with ~50% ASIC- and ~50% GPU miners (split based on capex investment) and conservative estimates (e.g. no overclocking of GPUs), we have calculated the total ROI of envion’s proprietary mining operations to be 181% ¹⁰ (based on current market conditions as detailed in table 1).
This estimate is based on the current mining difficulty and takes into account hardware power inflation (e.g. newer GPUs are introduced that are more efficient) and hardware defects (e.g. hardware failures of GPUs) — compare assumption A6.
ROI 181% ¹⁰: This number is based on a set of assumptions:
Detailed tables showing costs and earnings as well as key efficiency parameters can be found below. These tables should give first insights into the basis of ROI calculations (costs and benefits) as well as into the performance of an MMU in an exemplary configuration as indicated above. The model shown here is a simplified model of the envion operating model. The following model calculation consists of a mixed operation (50%/50% based on invested capital) of GPU and ASIC mining. It is important to recognize that this MMU configuration is hypothetical. It’s purpose is to best reflect a reality in which our operation will be split into GPU and ASIC mining — each operating in separate mobile mining units (one with 100% ASICs, one with 100% GPUs) as depicted in our whitepaper (this does not impact the business plan below). The purpose of the model shown below is to provide approximate performance indicators that best reflect the actual units that will be built. Please note that this configuration differs from the first generation that we have built (e.g. with 48 GPU-based mining rigs with 624 GPUs in total). Furthermore, the calculation is conservative and does not take overclocking of GPUs into account and is based on USD.
Disclaimer: The cost structure as depicted in these tables are based on an MMU with 50% GPU miners and 50% ASIC miners. Please consult our Whitepaper for an overview of other possible configurations. The overhead calculation is based on assumptions that might be wrong or change, such as, but not restricted to, prices of third party services, levies and fees on crypto related activities, tariffs on computer hardware in various jurisdictions, expenses for litigation and settlements, changes in the regulatory environment, insurance for directors and officers, insurance for containers, costs of transport, changes in the supply chain, expenses for experts in production logistics, energy markets, data centers or other business segments. Therefore the costs for overheads displayed in this document provide only a rough guidance, but cannot be guaranteed by envion. The company is not liable for deviations from projections described herein and will not award any damages based on these projections. The above model shows the assumed return using an annual projected token profit based on a 25% reinvestment strategy and current mining difficulty & market conditions. Actual results can be higher or lower. The model is a sample calculation. The model should not be regarded as information for an investment in tokens or as an offer of or a solicitation to buy tokens.
The calculations are according to the “use of proceeds” (as defined in the Whitepaper) of the envion ICO and the distribution of 83% of the tokens to investors. Calculations show the business case for the average investor (it does not take into account different token prices): It does not factor in the possible dilution effects of any rebates as scheduled for the four phases of the ICO (see our website www.envion.org). In the private pre-sale ending on the 14th of December 2017 up to 6m EVN tokens will have been placed in order to finance the ICO and advancement of the envion business case (e.g. patent application). As the proceeds of this placement will not be invested in MMUs they also have a diluting effect on the payout. The dilution effect is not factored in the above projection because it depends on the size of the ICO.
All projections are calculated before taxes, which depend on MMU locations and and the question whether the payouts will be categorized as profits or costs by the jurisdictions of these locations. Therefore final payouts can deviate because of tax reasons.
(1) We have tested multiple GPUs for our first generation mobile mining unit based on extensive testing performed as described in our Whitepaper (see chapter “Envion Mining Excellence”). The GPU model has been chosen based on cost/benefit ratios, supply/demand ratios, and energy usage among all viable mining GPUs. The chosen model is subject to change. The hardware model selected for MMUs will be determined at the time when component sourcing & procurement starts.
(3) This includes housing, energy components, monitoring electronics, mining equipment, installation, and overhead
(4) This ROI resembles the raw ROI from operations. It does not take into account that 17% of all tokens are not distributed (see Whitepaper) and does not take into account that only 91% of invested funds are invested into mobile mining units (the rest is spent for R&D and other company expenses)
(5) This ROI takes into account that only 83% of all tokens are distributed among investors (10% remain with folders, 5% in the company, 2% are reserved for the bounty program). The resulting ROI is one that an investor in the company would have if 100% of invested funds were to go directly into mining units (compare 91% investment share)
(6) This ROI takes into account that 91% of all invested funds after the ICO costs of 1.5m USD (already mostly raised at the time of writing and maybe fully raised at the time of ICO) are spent building mobile mining units and that 83% of tokens are distributed to investors. See also (4) and (5)
(7) We understand that there are widespread opinions in the mining community as to what the correct value for monthly depreciation is. We decided not to include uncertain factors like the future development of total network mining power into those numbers as there are countless models that try to make assumptions about the future development. Our numbers reflect only hardware defects and include a general yearly inflation of processing power efficiency as newer GPUs or ASICs come out. Positive effects like rising prices of cryptocurrencies (e.g. Ethereum or Bitcoin) or emerging of new, even more profitable cryptocurrencies are not taken into account in this calculation and offer additional growth potential for token holders or might at least compensate negative factors like difficulty increases. This means that envion token holders profit directly from positive market developments for cryptocurrencies. For full details, please refer to our Whitepaper
(8) A depreciation of 20% per year means that a full depreciation is expected after five years, a depreciation of 25% per year means that a full depreciation is expected after four years
(9) Investment includes share of MMU itself including share of electronics and labor
(10) The ROI shown on the envion homepage shows 161% per year which is an older number. We decided not to change the ROI on the website all the time but present very up to date numbers with this calculation. This calculation is more conservative but also some factors changed positively why the resulting ROI assumption is higher.