Welcome to Kadena Eco’s Project Spotlight Series, where we highlight the groundbreaking work of organizations currently building and innovating on the Kadena blockchain!
Today, we’re shining the spotlight on Kadena Mining Club (KMC) with founder Matthew Dunrya. Kadena Mining Club’s mission is to offer everyone an opportunity to mine cryptocurrency, specifically Kadena tokens (KDA), without the hassle of actually having to purchase miners and create a set-up for mining.
- How were you inspired to come up with the idea of hashrate-backed NFT?
The inspiration for hashrate-backed NFTs came from my personal experiences with mining at home and the challenges faced along the way. Setting up and maintaining a mining operation, particularly when dealing with the limitations of a residential environment, can be quite tricky. Along this journey, I realized there are many people just like me.
Many people are interested in mining but can’t participate due to reasons that I mentioned below in the article. These challenges led our team to envision a solution that would lower the barriers to entry and allow more people to join the mining community, ultimately strengthening the decentralization of the network. By tokenizing mining power through smart contracts and connecting ASIC miners to the Kadena blockchain, people can experience mining without having to buy expensive hardware or worry about the environmental and logistical constraints associated with mining at home.
2. What are the benefits of KMC’s NFTs compared to traditional NFTs (e.g. Apes)? What is an NFT? An NFT is data on the blockchain. It sounds simple, yet serves as the catalyst for hashrate-backed NFTs, democratizing access to mining rewards and creating a new and sustainable approach to mining that empowers people to contribute to the network’s decentralization, regardless of their living situation, electricity rates, or financial resources.
Beyond hashrate, our team was determined to create NFTs that stand out in the rapidly evolving digital landscape. While we drew inspiration from traditional collections, we sought to bring a unique touch to our 10,000 “Miners.” These randomly-generated, fully-animated characters feature over 250 unique traits, many drawing inspiration from the rich and sometimes hilarious culture of cryptocurrency and blockchain technology. Our creative vision was to personify the ASIC miner, transforming it into a machine that lives and works inside the blockchain. This approach ensures our NFTs remain relevant and cherished by collectors, even long after the mining concludes.
3. What features of Marmalade specifically set your NFTs apart? ?
We are pleased to have recently transitioned the KMC NFT collection and marketplace from an independent NFT standard to the advanced Marmalade NFT standard. This upgrade introduces numerous advantages that not only elevate the present functionality and appeal of our products but also lays a strong foundation for future growth and development. The Marmalade standard enables simultaneous listing of NFTs on multiple marketplaces, enforces royalties across trading platforms, and allows for NFT staking to be built directly into the NFT, facilitating complex lending and collateral systems.
What we are most excited to utilize is Kadena’s unique Continuation Transactions with Marmalade, enabling efficient and scalable execution of long-running smart contracts. While we have yet to disclose our specific plans for utilizing Continuation Transactions, we firmly believe that this integral aspect of Kadena and its interoperability with Marmalade holds immense potential for both enterprise and consumer applications.
4. What are current issues with mining and how does Kadena Mining Club solve these problems?
There are three primary barriers to entry for residential miners: 1) electricity costs, depending on an individual’s location; 2) heat and noise generated by ASICs, making them difficult to host in small living spaces; and 3) the high upfront cost of ASIC miners, often over $5,000. The Kadena Mining Club addresses these problems by offering a more accessible entry point through NFTs, allowing individuals to begin mining at a significantly lower cost without the trouble of setting it up at home.
We want to be clear that our goal is not to replace at-home mining, which provides valuable learning experiences and fosters interest in blockchain technology. Instead, our aim is to help those who face barriers to mining due to the reasons listed above. By offering a more affordable option through NFTs, we enable individuals to dip their toes into mining, gain a better understanding of the process, and ultimately become more engaged in the Kadena ecosystem.
5. What is the process to start mining with Kadena Mining Club?
All you need to get mining with KMC is a Kadena wallet and some Kadena on Chain 8. Here’s our comprehensive guide on how to get started: https://medium.com/@kdaminingclub/how-to-purchase-kadena-mining-club-nfts-75b57cd54c0a
6. What can we expect from Kadena Mining Club in the next 6 months? Where do you envision yourself to be in 3 years?
Our core mission is mining for all. Currently, we are delivering 30PH/s of mining power to the Kadena community. Within the next 2 months or so, we expect to bring this number to 50PH/s~ with the release of our Technology Lab upgrade. Alongside the release of our Technology Lab upgrade, we will be releasing a new product that has been in development for several months, with more details to come later.
Our 6 month and long-term game plan is really exciting. Internally, we are developing several projects that fall outside the scope of mining. However, in due time it will come together and result in a spectacular platform.
The question of a 3-year time frame is particularly relevant for us, as our NFTs are linked to real-world products with a finite lifespan. Each KMC NFT comes with an industry-leading warranty on the associated Miner, either for 3 or 4 years, depending on the specific NFT. Among the collection, 1,500 Miners feature a 4-year warranty, easily identifiable by the distinctive “Special Arm Trait.” The remaining Miners carry a 3-year warranty. The warranty period commenced on March 14, 2023. It is important to note that mining does not automatically terminate once the warranty period concludes. However, if the ASIC associated with an NFT becomes irreparable, the corresponding hashrate will eventually cease. Our goal is to provide a transparent and reliable experience for our customers, ensuring they understand the terms and conditions associated with their KMC NFTs.
7. What did you like most about building on Kadena? What aspects drew you to building on Kadena?
The most appealing aspect of building on Kadena was discovering its potential as a next-generation blockchain platform. Having been interested in cryptocurrency for nearly a decade, I found Kadena to be a game-changer, with features that can be thought of as “Bitcoin 2.0.”
Kadena’s multi-chain technology and Chainweb architecture provides a robust foundation for decentralized applications, empowering individuals to realize the decentralized future using Kadena’s technology. As the blockchain industry matures, it’s essential to prioritize long-term viability, and Kadena delivers on that front.
Working on Kadena has been an incredibly gratifying experience because of the fantastic team and supportive community. The ease of communication within the ecosystem, facilitated by platforms like Discord, enables swift organization of events and collaborative marketing campaigns. Overall, the collaborative spirit and advanced features of Kadena have made it a truly rewarding platform to build upon.
Many thanks to KMC for sharing their vision of what mining in the future would look like. We’ll be featuring more Project Spotlights in the coming weeks, so stay tuned as we’ll continue to profile innovative organizations that are currently building on Kadena with support from Kadena Eco, our innovation network that supports startups at every phase of their development journey.
To keep updated on KMC’s progress, make sure to follow them on their socials: