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Re: Mining profitability

Posted: Tue Sep 01, 2015 9:57 pm
by Steve Sokolowski
The balances are synchronized continually.

When a block is found, the database is queried to see what the orphan rate for that coin is, and it immediately pre-sells (the value of the block * (1 - orphan rate)) of that coin. That block then matures or is orphaned over the next few hours.

If someone changes a payout proportion or puts a lot of hashrate towards being paid out in a new coin, then small purchases of the minimum trade amount are made at the cheapest exchange. Once that exchange rises in price, then coins are purchased from what is now the cheapest exchange, and so on.

Sometimes, a coin is cheaper to buy or sell through an intermediate currency. For example, CHNCoin -> LTC -> BTC -> DASH gets more DASH than CHNCoin -> BTC -> DASH, so the first path will be executed at the same time.

A way to look at it is that the pool reconciles the coins it has with the coins it owes to people all the time. If our predicted holdings after maturity of blocks will be too high, we get rid of those coins. If our holdings of owed coins fall too low, those coins are purchased for customers. There are thousands of trades and about 30,000 blocks per day.