Payout time reliability due to bitcoin network overload

[Steve Sokolowski]

Recently, there have been a few customers voicing concern about irregular payout times, especially on the bitcoin network. We love receiving customer feedback, and are always willing to help you when you contact us.

That said, I just thought it was important to point out that our policy is that we guarantee payment within 24 hours of the time it becomes due (midnight EST, on the day when you exceed the payout threshold for a coin, or every day if you checked "ignore payout threshold.") In the past, payouts usually occurred exactly at the same time every day because the bitcoin network was functioning well.

Now, however, the bitcoin network is overloaded, due to the block size standoff. On many days, one or more exchanges do not process our withdrawals in time because the bitcoin network is unable to confirm them. We can't accelerate exchange withdrawals. On many days recently, the trading software has attempted to issue payments, discovered that a withdrawal was still pending, and therefore has rolled back the database. In that case, Chris tries again later in the day after the exchange withdrawal finishes successfully.

Another cause of delays is that we do not pay transaction fees on the bitcoin network to get payouts into the next block. If we did, we would be paying more than $3 in fees. Since some customers choose to "ignore payout threshold," that means customers would be losing almost $1,100 per year in bitcoin transaction fees. We compromised between payout speed and fees by aiming for confirmation in six blocks, which has cut the fees to $1 per day (among other measures).

We still promise to deliver payouts within 24 hours of the time they are earned, but unfortunately, we can no longer be confident of the exact time of day they will be sent. Chris is automatically notified of problems during the middle of the day, so it is usually not necessary to contact him about payout issues within the first 24 hours. We recommend that you wait until the next midnight EST before contacting Chris, at which time he will be glad to assist in fixing any payout issues that remain at that time.

Again, we apologize for these delays. We continue to be frustrated by the Bitcoin Core's unwillingness to respond to feedback from businesses who use bitcoin to conduct everyday transactions. If you are also frustrated, I urge you to support Bitcoin Unlimited, which now has 22% miner support as of this writing. If Bitcoin Unlimited is adopted by the network, payouts are likely to be processed sooner, the payout threshold will be lower, and customers who ignore the threshold will be saved money. Feel free to contact Chris or reply if you have any questions or concerns.