in my previous post, I introduced the idea to consider mining $DPR, and you can potentially recover your cost in a little over 66 days. Now, let me show you the math on how that works.
To make sure we are on the same page, here is the CoinMarketCap link to it https://coinmarketcap.com/currencies/deeper-network/
Earning Rates mining $DPR
Mining with Deeper Connect devices is following a unique mechanics called Proof of Credit (PoCr). It is not like any Proof of Work, or Proof of Stake, and it’s not doing any power hungry hashing like PoW Ethereum and Bitcoin. All we need is to keep our Deeper Connect devices online for as much as we can.
Earnings are linear, and so are pretty predictable. How much you earn though, depends on the credit score your device has. The details are known up front, and below is the reference table. Source. There is a slight inaccuracy with the source, and I’ve fixed it in my table below. I have also added in the US$ equivalent, but of course it will vary. I created the table based on the token price of US$0.0319, at the time of this writing.
In order to mine and earn tokens, your device needs to have at least a Credit Score of 100. Earning rate goes up each time you hit additional 100 points. There are 2 ways to increase the Credit Score,
- Organic growth – keep the device online 24×7, and share 10MB of traffic everyday. Every 2 consecutive days this happens, your device will earn 1 point. (It has been announce this is about to change, that 2 days requirement will be reduced to 1). Until it gets implemented, let’s keep to the 2 days calculation. It means every 200 days (without missing a day) your credit score will go up by 100, and your earnings goes up.
- Stake DPR – Buy some DPR, and stake it. Starting at 1000 DPR to simply get the device on the blockchain for Organic Growth. You won’t earn any DPR, but you will get awarded 10 Credit Score. (It’s stated on Deeper Network’s medium post, that there is 0 credit score. That is incorrect, and I have validated with personal experience and cross checking, that you will get 10. Additionally, you will be given 2 DPR in your Deeper Wallet.) Now, if you are in this for mining, you will likely want to get ahead, and not just wait to grow the score organically. Then you’ll want to consider buying from 5,000 up to 100,000 tokens. The higher you stake, the better APR you get. The current program, known as Basic Mining, pays up to 60% APR with the highest tier at 800 Credit Score.
How much to stake is very much up to you, whatever you can afford to lose.
DYOR, I’m not qualified to give financial advises.
Also, be aware of this, for your first time staking, let’s say to bring the device to a score of 200, you will need 11,000 DPR. The first 1,000 DPR is always needed to bring a new device on to the blockchain, and add on 10,000 DPR to bring credit score immediately to 200.
You can follow Deeper Network’s post to get the staking going. While it is titled for “PC”, it works for me on the Mac too. After you have completed the staking, you will need to give your device a reboot (or power cycle) for it to take effect on the device.
About Basic Mining
Basic Mining is the name of the original mining program that started with the Deeper Connect devices. All devices so far are capable of mining. I personally have the Mini and Pico, and both earn equally well. The v1 program (as I call it), will change from 1st June 2022. Deeper Network calls it Basic Mining 2.0, and you can read more here.
There will be some differences, but essentially the idea remains the same, bring your credit score up to earn more rewards. Let me cover about Basic Mining 1.0 first.
- Mining begins in under 72 hrs from staking, experience will vary, most of mine happened within 2 hours.
- Reward period is 270 days, and you get a fixed payout everyday, around the same time.
- After 270 days, you have the option to un-stake, or re-stake
- If during the time, your credit score hits the next tier, your earning goes up
- Credit Score can be increased by natural organic growth, or more staking
All rewards are paid to your Deeper Wallet, which is tied to your device. You are allowed to withdraw from the Deeper Wallet to your own Hot/Cold wallet, using Deeper Network’s bridge. There are 2 bridges, one to Ethereum, and another to Binance Smart Chain (BSC). Most will pick BSC, as it has a much lower gas.
Be aware though, each BSC wallet is limited to receive up to 3000 DPR tokens per day.
You can withdraw your rewards from your Deeper Wallet to your BSC Wallet, then use it to increase your stake. I’ve done it and it works pretty well.
What is changing with Basic Mining?
Essentially, what is changing includes the following :-
- Staking period from 9 months will be reduced to 6 months
- You can unstake anytime, and it can be done from within AtomOS. Reportedly from version 1.1.16.
- For non-genesis miners the mining APR will change every 3 months. 01-Sept-2022, 01-Dec-2022, 01-Mar-2023, 01-June-2023, 01-Sept-2023, and 01-Dec-2023.
- For those devices that staked before 01-June-2022, they will be grandfathered in to the v1.0 program and APR will remain for the individual 9-months period.
A question most will have is, what happens after 9 months to those devices that have made it to v1.0 program? I haven’t come across a firm answer yet. I can imagine 2 possible outcomes :-
- they either stay on the v1.0 program for as long as they keep re-staking
- they will follow the v2.0 program once their 9-months have run out
What Did I do?
With my very first Mini, I started with a credit score of 200, and I staked 11,000 DPR. At that time $DPR was about US$0.13. After running it for a few weeks, and having done more research, I felt more confident and increased my score to 500. Why 500? What’s my strategy?
At that time, I couldn’t afford to stake all the way to a credit score of 800. I plotted the chart of Stakes versus Rewards, and found that with 50,000 DPR staked, is the point where the reward curve increases the most. That was also about the point where I was comfortable to invest more in. Hence, that’s the number I picked.
Fast forward to the crypto crash in May 2022, as DPR price dipped, I bought more and increased my stake to 700. I didn’t go for 800, as my device is a few weeks away to hit 800 by organic growth, so I could save myself 20,000 DPR tokens, and wait.
If I have multiple devices, should I distribute my stakes, or concentrate on one?
This is a common question. The answer is simple, and based on the v1.0 rewards rates.
Concentrate mostly on one device first. Each incremental investment in the first device will earn you more DPR rewards every day. Nevertheless, do get every device at least the first 1,000 DPR to get them on the blockchain. Use the time they are online to grow the organic scores.
The Deeper Connect devices have the expectation that each network will only have one device. When more than 1 device exists, only 1 will earn the credit score, and it is random. More specifically, each public IP on the Internet is allowed to only host 1 Deeper Connect device that will earn organic score. If ALL your devices are staked to 800 credit score, then this is not a concern.
Some have worked around this by attaching the Deeper Connect Mini/Pico to a 4G mobile router with success, but still keeping only to 1 device per Internet IP.
If this gets you interested, please consider using my referral link when you purchase your device from the Deeper Network store.
- Deeper Network Store – https://deepernetwork.myshopify.com?sca_ref=2038814.0SH4j8om9p
- Deeper Connect Mini – https://deepernetwork.myshopify.com/products/deeper-connect-mini?sca_ref=2038814.0SH4j8om9p
- Deeper Connect Pico – https://shop.deeper.network/products/deeper-connect-pico-wi-fi-adapter?sca_ref=2038814.0SH4j8om9p
DYOR – Do your own research. I’m a tech guy, not a financial advisor. Hope you enjoy learning about some tech from my posts. I am not qualified to write about financial advices, and please make your own decision. What I will say, only spend what you can afford to lose. Things are way too unpredictable in the cryptoverse. Have fun and good luck!