HPT token — share in the world’s no. 17 supercomputer

At House Panda, even before NVIDIA started incubating us, we were trying to find our unique way between these 2 existing approaches:

1. Absolute majority of world’s top 500 supercomputers are operated by public institutions such as universities. As such, they do not have to disclose their idle time and do not have to meet any profitability targets.
2. On the other hand, private supercomputers, such as those run by Renaissance Technologies or other hedge funds, are incredibly profitable, although their utilization rates are not public either.

House Panda, consisting of 72 NVIDIA DGX-1 Tesla artificial intelligence supercomputers, is projected to become the 17th most powerful supercomputer in the world at the cost of US$10,728,000 in hardware only. We expect to charge users a monthly membership fee for users, first of all for using our real estate price predictions powered by the supercomputer and later cryptocurrency price predictions and stock price predictions.

Bloomberg Terminal provides stock information only and is able to charge its hundreds of thousands of users US$2,000/month. House Panda prices will start at only 99HPT/month.

However, what should we do at times when House Panda supercomputer is at less than 100% busy?

This is where we should be able to leapfrog the industry by utilizing our processing power 100% at all times by allocating idle resources to cryptocurrency mining. A quick calculation shows that should we direct our full processing power to mining Monero, we would be making US$22.93m in profit per month, or US$278.93m per year. That would be enough to make House Panda a multi-billion company (a unicorn) instantly.

However, at House Panda we set out to create unique prediction products powered by artificial intelligence. Thus while in the beginning we might be able to allocate as much as 33% of processing power to cryptocurrency mining (at night, for example), over time we expect this to decline to around 15–20% or less. In any case, mining income will more than cover our hardware replacement costs, ensuring that we can maintain our (expected) place among the top-20 most powerful supercomputers in the world. After all, as Andrew Ng, former Chief Scientist at Baidu, has said:

“AI computers are like space rockets: The bigger the better.”

100m HPT tokens, each nominally worth US$1, will be preminted. Up to 25% of those will be distributed during an ICO in the coming 1–2 months. We will reward HPT token holders with 10% of our cryptocurrency mining income, paid out every month.

A quick calculation:

1. US$278.93m — annual potential Monero (XMR) mining income. Let’s say we start by allocating 33% of our processing power to Monero mining, which would yield US$92,046,900 in income.
2. A 10% divident to HPT token holders, including ICO participants, would amount to US9,204,690. Bearing in mind our maximum ICO size of US$25,000,000, this would mean a 36.81% annual return, or 3.06% monthly return, from dividends alone to HPT token holders. In other words, every 1,000 HPT tokens, nominally worth US$1,000 at ICO time, would generate US$368.1 in annual income, or $30.6 in monthly income.
3. In the future, should we allocate only 15% of our processing power to Monero mining, the annual mining income (at current Monero prices) would amount to $41,839,500. A 10% dividend to HPT token holders would amount to $4,183,950.

Disclaimer: the CryptoCompare calculator might be wrong. Other Monero mining calculators have given us very different results. It is impossible to know how effective House Panda supercomputer will be in mining various cryoptocurrencies without trying it first. Each NVIDIA DGX-1is priced at $149,000 — very expensive compared to regular mining hardware, so we have not been able to find it subjected to mining tests.

As you can see see from the above screenshot, mining Ethereum Classic is in a different league of profitability to mining Monero (according to the same calculator). If our mining profitability is around this level, we would still be able to make a good income — and, in contrast from most other blockchain startups, do so from month 1 of operation. At this level of profitability we would be able to distribute up to 50% of mining profits to the community.

In both cases, mining profits would be distributed monthly in HPT tokens at the market exchange rate between the cryptocurrency mined and HPT.

Disclaimer: At House Panda our objective is efficient use of processing resources. We cannot guarantee cryptocurrency mining income — it will vary with chosen cryptocurrency and its market price at any given time; by our processing power allocation in a given day, week, month and year; and certainly some other variables we have not foreseen. One of the possible risks is that mining Monero will become unprofitable over time. However, we expect new cryptocurrencies to become available for mining over time.