Gold Rush Guide | Is Mining Ore Still Worth It Amid Growing Competition?
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Gold Rush Guide | Is Mining Ore Still Worth It Amid Growing Competition?
Ore is a cryptocurrency deployed on the Solana blockchain, utilizing a proof-of-work (PoW) algorithm.
Navigating Web3 tides with focused insightsBy shaofaye123, Foresight News
Ore, an experimental hackathon project, once caused network congestion on Solana and attracted attention due to its token price. The launch of its second phase immediately drew widespread interest. This article will guide you through participating in the mining opportunity.
What is Ore?
Ore is a cryptocurrency deployed on the Solana blockchain using a Proof-of-Work (PoW) algorithm. This design allows miners to maintain network security by solving cryptographic puzzles and receiving corresponding cryptocurrency rewards. Unlike traditional mining projects, Ore adopts a non-exclusive reward mechanism to ensure fair distribution of miner rewards. Ore provides personalized computational challenges for each miner—once a miner completes their assigned computation, they receive a certain reward. This mechanism avoids the "winner-takes-all" phenomenon in mining, giving every participant a chance to earn rewards and thereby enhancing inclusivity and fairness across the network. To address inflation concerns during mining, Ore has set a strict supply growth rate: between 0 and 2 Ore per minute, increasing linearly. However, the background of the Ore project team remains largely mysterious, with Hardhat Chad being the only known core developer.
The second phase of Ore mining officially launched at 8:00 AM Beijing time on August 6, activating the V2 upgrade while upgrading V1 token metadata.
Ore v2 Version Update
Hardhat Chad, founder of Ore, released the ORE v2 version update. The new version rolls out in three stages: upgrading V1 token metadata, enabling the V1-to-V2 transition, and activating mining. Ore v2 brings several notable new features and improvements for miners:
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Removal of admin variables: By switching to an open-source algorithm for management, admin variables have been eliminated, increasing system decentralization;
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Supply cap: Ore v2 sets a total supply cap of 21 million tokens, expected to be fully mined by 2064;
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Introduction of staking mechanism: Miners can earn up to double mining rewards through staking;
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CPU-friendly hash function: Adoption of a CPU-optimized hash function reduces hardware requirements, improving accessibility for mining;
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Enhanced anti-Sybil attack measures: Optimized strategies reduce the risk of Sybil attacks;
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Client upgrades: Support for additional devices will be added in the future;
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Upgradable smart contracts: Smart contracts are upgradable initially but will be permanently frozen later;
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Token swap: V1 tokens can be exchanged 1:1 for the new Ore tokens within three months, offering a smooth transition for existing token holders.
How to Participate?
Browser Mining Guide
1. Create an account: Visit the official Ore website, register, and create a new mining account.
2. Deposit funds: Deposit 0.1 SOL into your account, which will be used for gas fees.
3. Start mining: On the account interface, locate and click the "Mine" button. The system will automatically assign block difficulty, allowing you to start earning Ore.
4. Check rewards: In the mining interface, you can view in real-time the amount of Ore you've mined. Once confirmed, these rewards will be added to your account balance.
Script-Based Mining Guide
Command-line mining (for Linux or Mac systems):
If you’ve mined in Season 1, simply run: cargo install ore-cli, then input ore --version to confirm ore-cli 1.1.0.
Install Rust environment: curl https://sh.rustup.rs -sSf | sh
Install dependencies: sudo apt-get install build-essential
Install Solana development environment: sh -c "$(curl -sSfL https://release.solana.com/v1.18.4/install)"
Install ORE mining CLI tool: cargo install ore-cli
Create ORE mining wallet: solana-keygen new
Start mining with this command: ore --rpc https://api.mainnet-beta.solana.com --keypair ~/.config/solana/id.json --priority-fee 1 mine --threads 4
Check mining rewards: ore --rpc https://api.mainnet-beta.solana.com --keypair ~/.config/solana/id.json rewards
Claim rewards: ore --rpc https://api.mainnet-beta.solana.com --keypair ~/.config/solana/id.json claim
(Script mining guide reference: @Btc_Crush https://x.com/Btc_Crush/status/1820475971042156872)
Mac and Linux offer more convenience due to native terminal support. Windows users are advised to use the Ubuntu subsystem.
(Official mining guide reference: https://ore.danielchrobak.software/)
Mining Efficiency Analysis
Ore primarily distributes rewards based on difficulty—higher difficulty yields greater rewards. Difficulty levels are randomly assigned, meaning high-difficulty blocks depend largely on luck.
The probability of hitting high-difficulty blocks is very low
— Extending beyond the default 30-second window to search for high-difficulty blocks results in halved rewards per attempt, making profit calculations difficult.
— Setting a minimum difficulty threshold in the source code and repeatedly rejecting blocks also leads to losses, making it hard to achieve balance.
Currently, Ore mining is highly competitive; excessively high fees or low difficulty may result in losses.
Gas fees below 500,000 may fail to get transactions on-chain. Based on current estimates, difficulty below 18 may not cover costs, leading to losses. Machines below M3 configuration are advised to proceed with caution. Despite intense mining enthusiasm, the token price performance has been modest and appears relatively high.
Below is a simple calculation of the relationship between current costs and token price:
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Setting gas fee above 500,000, assuming one successful transaction per minute, consuming 0.00023 SOL, daily cost approximately:
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0.000255 SOL × 148 U × 60 × 24 = 54.3 U
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Current number of participating addresses is around 10,000 according to Dune Analytics. At a current token price of 450 U, estimated daily earnings:
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0.0001 × 450 U × 60 × 24 = 64.8 U (Miners with exceptional luck hitting difficulties above 25 can achieve solid returns)
Although current participation returns are modest, Ore as a PoW token on Solana remains worth monitoring.
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