Mining Pool 2.0

Mining Pool refers to the amount of OVO Tokens that can be earned by staking NFT content officially designated by OVO.SPACE (stored in Collection). All OVO Tokens distributed to the Mining Pool are extracted from the Ecosystem (see Chapter 4).

Mining Pools are placed for each content for example, Nyathees Mining Pool will be placed for Nyathees, and COG Mining Pool will be placed for Cuty Owl Girls (COG). In addition, a similar mechanism will be implemented for NFT content stored in OVO.SPACE Collection in the future.

The Mining Pool for specific NFT content changes every week depending on the number of uses of "Fusion/Upgrading", the price of OVO Tokens, and the number of wallet addresses participating in NFT Mining.

The latest MiningPool formula is as follows. The closing price of each parameter for the day (number of synthesis, number of mining stakes, token price, etc.) will be obtained at 24:00 Japan time, and will be reflected in NextWeekPool at 0:01 the next day. Also, the ThisWeekPool value for the next week will change to the NextWeekPool value shown at 24:00 on the 7th day of the previous week, but please note that the next week's ThisWeekPool will be updated between 0:00 and 0:30.

１.NextWeekPool calculation formula for the token pool amount for the following week.

$$NextWeekPool = ThisWeekPool_{i+1} = ThisWeekPool_{i} \cdot (1+M(r_{i})), i=1,2,3,4...n$$

２.Weekly Active Function

$$M(r_{i})=\frac{e^{2\cdot r_{i}}-1}{e^{2\cdot r_{i}}+1},\qquad i=1,2,3,4,...n$$

３.Calculation method for the input value of an activation function.

$$\begin{cases} & \text{ if } \quad \overline{\bigtriangleup P_{i}}=0 ,\quad r_{i}=0 \\ & \text{ if } \quad \overline{\bigtriangleup P_{i}}\ne0,\quad r_{i} =\frac{\overline{\bigtriangleup F_{i}}\cdot \overline{\bigtriangleup S_{i}} }{\left | \overline{\bigtriangleup P_{i} } \right | } \end{cases},\qquad-2.5 \le r_{i} \le 3, \quad i=1,2,3,4,...n$$

４.The average rate of change and the rate of change in the number of times Fusion&Upgrade function is used.

$$\overline{\bigtriangleup F_{i} } = \frac{\sum_{1}^{j} \bigtriangleup F_{i,j}}{j},\qquad1\le j \le7$$

$$\bigtriangleup F_{i,j} =\begin{cases} & \text{ if } \qquad j=1 ,\qquad \frac{F_{i,j}-F_{i-1,7}}{F_{i-1,7}} \\ & \text{ if } \quad2\le j\le 7, \qquad \frac{F_{i,j}-F_{i,j-1}}{F_{i,j-1}} \end{cases}$$

５.The average rate of change and the rate of change in the number of wallets staked in mining.

$$\overline{\bigtriangleup S_{i} } = \frac{\sum_{1}^{j} \bigtriangleup S_{i,j}}{j} ,\qquad1\le j \le7$$

$$\bigtriangleup S_{i,j} =\begin{cases} & \text{ if }\qquad j=1 ,\qquad\frac{S_{i,j}-S_{i-1,7}}{S_{i-1,7}} \\ & \text{ if } \quad2\le j\le 7,\qquad\frac{S_{i,j}-S_{i,j-1}}{S_{i,j-1}} \end{cases}$$

６.Average rate of change and rate of change in OVO Token price (gate.io).

$$\overline{\bigtriangleup P_{i} } = \frac{\sum_{1}^{j} \bigtriangleup P_{i,j}}{j} ,\qquad1\le j \le7$$

$$\bigtriangleup P_{i,j} =\begin{cases} & \text{ if }\qquad j=1 ,\qquad\frac{P_{i,j}-P_{i-1,7}}{P_{i-1,7}} \\ & \text{ if }\quad 2\le j\le 7,\qquad\frac{P_{i,j}-P_{i,j-1}}{P_{i,j-1}} \end{cases}$$

Explanation of the Mining System Update:

1. In the initial version, the mining pool calculation formula relied only on data from the 1st and 7th days of each week to calculate the rate of change. This allowed for potential manipulation of mining pool values by a small number of participants. Additionally, relying solely on two days of data revealed issues such as inaccurate reflection of daily activity rates in NFT mining. Therefore, in Mining Pool Identity Formula Version 2.0, data from the 1st to the 7th days of each week is collected, and the introduction of an average rate of change prevents manipulation of pool values while accurately reflecting daily activity rates.

2. The reason for changing the ΔF*ΔS / ΔP formula in the initial version to the Weekly Active Function M(r) was to minimize the impact on the mining pool due to extreme parameter fluctuations and provide a more stable mining pool. In the traditional mining pool identity formula, assuming ΔP and ΔF as constants, even if the ΔS value on the 1st day is positive, if the ΔS value on the 7th day becomes 0, the mining pool would drastically decrease, resulting in irrational outcomes. Introducing the Weekly Active Function M(r) and average rate of change helps mitigate the impact on the mining pool due to extreme parameter fluctuations.

3. The conventional form of the mining pool formula couldn't represent the NextWeekPool by capturing the closing price on the 7th day. However, in Version 2.0, it becomes possible to represent the daily changes in the NextWeekPool. Although the NextWeekPool is determined on the 7th day, visualizing the impact on the mining pool due to daily activity is meaningful.

4. Finally, it's important to note that in the event of issues occurring within the BSC chain or the inability to obtain data on a specific day due to uncontrollable external circumstances, that day's data will be treated as None. Please be aware of this in advance.

Explanation of Parameters: ThisWeekPool / NextWeekPool

The definition of NextWeekPool refers to the distributable number of $OVO tokens in the seven days following the 7th day (JST 24:00) starting from the time of implementation of the mining feature on October 31, 2023.

For instance, the 1st week spans from October 31, 2023, to November 6, 2023, the 2nd week from November 7, 2023, to November 13, 2023, the 3rd week from November 14, 2023, to November 20, 2023, and so on, delineating weeks in this format. If the mining process currently enters the 2nd week, ThisWeekPool represents the mining pool quantity for that week, while NextWeekPool indicates the pool quantity for the 3rd week.

Weekly Active Function M(r)

The function expressed by M(r) is also known as an activation function and is commonly used in the hidden layers of neural networks. M(r) is a modified form of the activation function and is used as a device to measure the level of user activity participating in the mining pool.

The range of input values for M(r) is [-2.5, 3], and the output values range from [-0.99, 1]. In other words, when the output value of M(r) is -0.99, the numerical value of NextWeekPool becomes 1% of ThisWeekPool. On the other hand, when the output value of M(r) is 1, the numerical value of NextWeekPool reaches 200% of ThisWeekPool, in other words, doubles it. Additionally, when the output value of M(r) is 0, NextWeekPool equals ThisWeekPool, essentially indicating "no active change".

The input value 'r' for function M(r)

r is both the input value for the M(r) function and the output value obtained from ΔF*ΔS / |ΔP|. The output value range for r is [-2.5, 3], and it can be mapped to constrain the Weekly Active Function within the range of [-0.99, 1].

Average rate of change / rate of change

The average rate of change is the averaged value of daily rate changes over a specified week, ranging from the 1st day to the 7th day. For instance, if the daily rate changes are 0.2 on the 1st day, 0.3 on the 2nd day, and 0.4 on the 3rd day, the average rate of change would be calculated as (0.2 + 0.3 + 0.4) / 3.

The definition of rate of change is as follows: Daily rate of change = (Current day value - Previous day value) / Previous day value. This formula is applied to the number of wallet addresses staked in mining, Fusion & Upgrade occurrences, and OVO Token prices to obtain their respective rate of changes.

About mathematical symbols

i: Week j: Day F(i, j): Fusion & Upgrade occurrences on the jth day of the ith week S(i, j): Number of wallet addresses staked in mining slots on the jth day of the ith week P(i, j): OVO Token price on the jth day of the ith week NextWeekPool: Estimated token amount distributable in the next week (i+1th week) mining ThisWeekPool(i): Token amount distributable in the mining for the ith week