2nd Largest Bitcoin Mining Pool Launches An ERC20 Based BTC Hash Rate Token on DeFi
One of the largest Bitcoin mining pools in the world, Poolin, has launched a BTC hash rate token built on Ethereum to combine proof-of-work (PoW) mining and decentralized finance (DeFi).
Named pBTC35A, each unit of the token is equal to 1 terahash second (TH/s) hashing power that is owned by Poolin.
Earlier this month, Pooolin also launched Ethereum-based, decentralized, standardized hashrate protocol, Mars Project, consisting of pBTC35A tokens and its governance token MARS.
It allows users to earn rewards in Wrapped BTC (WBTC) and the MARS tokens by staking and liquidity providing (LP) — pBTC35A/USDT is one of the two LPs. The mining pool is selling up to 50k pBTC35A, which can be bought directly from Poolin or DEX Uniswap. Leo, founder of Anicca Research questioned,
“This is the same business model as cloud mining platforms. Poolin acquires and manages the machines and sells tokens that represent Th/s. This is all fine, nothing we haven’t seen before. But then there’s a governance token. Just… why?”
Last week, another project launched Bitcoin Standard Hashrate Token (BTCST) on Binance Smart Chain. The token is collateralized by 0.1 TH/s of actual Bitcoin mining power standardized to an efficiency of 60 W/TH.
Miners contribute mining power to the platform in exchange for newly issued BTCST, staking which gives rewards in BTC.