CredaCash Mining and Currency Distribution
CredaCash mining will start on June 5.
Anyone can mine CredaCash currency. The software for mining will be released the last week of May, and no special hardware will be required.
The CredaCash currency will be mined in two stages. During the first stage, a large number of transaction outputs will be created to initialize the pool from which private transactions can be created. This will require just over one month, during which a total 10 billion units of currency will be created. One block will be mined every 15 seconds until 200000 blocks have been mined. Each block will contain one mint transaction that creates 50000 units of currency. The miner that creates the best mint transaction for that block will receive 1000 units of currency, the non-profit Creda Foundation will receive 40000 units of currency, and the Founders and initial investors will receive 9000 units of currency. The Founders reward is intended to compensate the developers for the four years of effort spent creating CredaCash, and incentivize them to continue development.
During the initial mining, the network will only accept mint transactions. The live production network that accepts send-type transactions will launch around July 15.
The production network will initially operate using Permissioned Witnesses (also known as Proof-of-Authority). The Witnesses will be chosen by the developers, and there will be no currency mined during this period.
In 2020, the CredaCash blockchain will be converted to a Proof-of-Stake protocol that will allow all currency holders to create and witness new blocks, and receive mining rewards. This protocol has already been created and tested in a simulation environment, and like the current protocol, it is fast, final, secure, robust and resilient. Additional development is needed to turn it into a fully functional Proof-of-Stake protocol that can operate with a privacy-preserving currency. To support this development, a portion of the currency allocated to the Creda Foundation will be pre-sold during this period.
The second stage of mining will begin with the release of the Proof-of-Stake protocol, and will continue indefinitely. Mining rewards will be higher in the early years, and it is anticipated that early miners who help grow the network will be able to roughly double their currency holdings in the first 2-3 years of Proof-of-Stake mining.
Also following the release of the Proof-of-Stake protocol, the Creda Foundation will hold an ICX. From 5% to 25% of the Foundation’s currency holdings will be auctioned in the ICX, allowing users to acquire more currency to use on the network or for proof-of-stake mining. After the ICX, the remaining currency held by the Foundation will be offered for sale at constantly increasing prices according to a pre-published schedule. This will again allow users to acquire more currency to use on the network or for proof-of-stake mining, while having a minimal effect on the market price of the currency.
We believe this plan gives the CredaCash project the best opportunity to grow and develop and serve the needs of the world and cryptocurrency community. Please join us during this exciting launch period, and contribute to the growth of the network by mining and using CredaCash starting June 5.