Post-Mining
| What is post-mining? Post-mining is the development of new coins following a cryptocurrency’s release, prior to public mining becoming possible. This allows for a more centralized distribution of the new currency, as opposed to the public mining process which can be subject to a great deal of variance. There are a few key things to keep in mind with post-mining. First, it’s important to note that not all cryptocurrencies will have a post-mining phase – some will go straight to public mining. Secondly, post-mining generally only applies to brand new cryptocurrencies, and not to forks or airdrops of existing ones. So, what happens during the post-mining phase? In most cases, the developers of the new cryptocurrency will pre-mine a certain number of coins before making the currency available to the public. They may then distribute these coins in a variety of ways, such as through a public sale or airdrop. The pre-mined coins can also be used to incentivize early adopters and developers to help build the new currency’s ecosystem. Once the post-mining phase is over and public mining begins, the process is generally the same as with any other cryptocurrency. Miners will use their computational power to solve complex mathematical problems in order to earn rewards in the form of new coins. While post-mining can be a helpful way to jumpstart a new cryptocurrency, it’s not without its risks. Because post-mining generally leads to a more centralized distribution of coins, it can make a currency more vulnerable to manipulation by its developers. It can also create an unfair advantage for early adopters and insiders, who may be able to accumulate a large number of coins before the general public has a chance to get involved. Overall, post-mining is a tool that can be used to help launch a new cryptocurrency, but it’s important to be aware of the potential risks involved. |
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