Luxor
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Luxor

2019 Re-Cap: Luxor

In 2018 our New Year’s resolution was to get the team on full-time. We are thrilled to have achieved our goal with Nick, Eddie and Ethan all on full-time.

TL;DR

What a year….

Our Focus for 2020

There was a lot of turmoil in the world in 2019, people around the globe are suffering at the hands of centralized entities. Now more than ever we must continue to build on and protect Bitcoin and other decentralized networks. As we said last year, this industry requires responsible guardians to efficiently use energy to maintain the security of the networks. We strive to be one of those responsible guardians.

Our goal for 2020 is to harness our software development capabilities to contribute to a strong crypto mining ecosystem in the West. This year we hope to expand the team, build more great products, and continue to interact with and learn from our community members.

Your Questions

Our community members sent us some year end questions and we tried our best to answer them thoughtfully.

Are you guys going to do profit switching?

Yes, we plan to launch an Equihash profit switching pool in the near future. This pool will auto switch between ZEC, ZEN, KMD and ARRR to start. Users will be able to opt into this pool if they want, but we will continue to run our standalone pools for users who want to mine a specific coin.

We will release more information as we get closer to launch, but we are expecting greater than a 5% increase in mining revenue vs. any of the stand alone Equihash pools.

For more information on what a profit switching pool is you can refer to this guide.

Thoughts on the BTC halving?

Miners are the most important contributors to Bitcoin, and Proof-of-Work is what makes the technology so great. PoW is, in reality, Proof-of-Burn (burning energy i.e. cost), and the Bitcoin ledger can only be immutable if it is extremely costly to produce.

We believe that any decrease in block reward will be offset in the long-term by an increase in transaction fees and/or an increase in coin price given the natural supply and demand of hashrate. Miners need to be incentivized through revenue to burn their electricity. If it isn’t profitable for them they won’t mine and if they don’t mine then BTC will become worthless.

In addition, with block reward decreasing so to does the inflation rate, which theoretically should put upward pressure on the price. The inflation rate is going to be falling from ~3.8% to ~1.8%. For the first time ever, Bitcoin will have a smaller inflation rate than most developed countries’ target (~2.0%).

This may not be an immediate correction, but in the long term it will trend to this new equilibrium as mining needs to remain profitable for miners to secure the network.

When are you bringing an Ethereum pool?

We are watching the Ethereum debate around PoW closely. While we want to launch a mining pool for ETC we will likely wait until there is more clarity on which direction they are heading.

We hope that the ETC community can make the right decision and stay with PoW, the only proven method to secure a decentralized network.

My school has no policy against using power for crypto mining, checked with the department. How can I use this?

Getting a GPU up and mining, handling crypto keys etc is a great way to break into mining and learn a ton. We think that more schools should offer programs to get students access to mining gear for the educational experience.
While your department may not have an explicit policy against crypto mining, you should be careful in exploiting that. Your department may not take kindly to their electricity bill increasing 10x, so just make sure that you have considered that. Could potentially donate a portion of your revenue back to the school to help fund a blockchain or mining student club.

When Luxorcoin?

We have no plans to launch a coin for Luxor but we are thinking of ways to better engage our community. If you have any ideas we would love to hear them.

When Zel pool?

We had to shut down our Zel pool earlier this year. We are hoping for the best for the project but for now Zel is not the best fit for Luxor’s pool offering.

If you are a miner and looking to connect please feel free to ping us at hello@luxor.tech

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Luxor has spent the past 2 years building North America’s largest Bitcoin & Altcoin mining pools. Through mining thousands of blocks, we’ve gained a deep understanding in extracting and valuing hashrate.

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Luxor Tech

Luxor is a Bitcoin mining pool and full-stack crypto mining company. The financialization of hashrate starts with us. https://www.luxor.tech/