There needs to be more transparency. This is one of our core tenets. If miners mine with us and build their own blocks they are able to verify that all payouts are 100% correct. I believe when miners get used to this they will not switch to non-transparent pools. It's only a matter of time.
what is view for potential trend with fee as part of block reward? will there expected growth from any additional streams or will be stagnation for some time?
This is a key question. Our premise is simple: when miners build their blocks through DMND’s Stratum V2 implementation, they can unlock new, additional streams of revenue. We’ve already built the foundation and launched the first key revenue streams. Next week, we’ll introduce another. it is a true paradigm shift in how miners can earn.
Bitcoin is a big tent. You have to make a living. I don't want you to think I'm just trying to heap maxi toxicity on you. I do have an aversion to altcoins, but regarding merged mining, I understand the economics, but I do think it sort of runs counter to your entire thesis that allowing the construction of blocks will help mining decentralization. It seems the main focus of your custom templates may serve to actually make it easier for big miners to further centralize with these additional altcoin fees. I know we probably come from very different perspectives. I'm open to listening. How do you see it as increasing decentralization?
80% of the bitcoin mining network merge-mines it now (i believe it's the top merge-mined coin) and the team behind RSK are highly technical and understood what Sv2 is... so it was only a natural fit!
Maybe I should have elaborated. Rootstock (and merged mining generally) can tend toward further centralization, as smaller miners find it even harder to compete with miners earning rBTC. There is of course the additional "shitcoin" stigma too.
all pools provide merge-mining. miners are used to it and expect it.
Check out one of my projects, the Merge Mining Monitor, where I reveal the merge mining attribution of each Bitcoin block (and also track other data of interest, most importantly, stale blocks "embedded" in the history of merge-mined chains).
Tried to think of something witty, but couldn’t. I think “believe about Bitcoin” is the wrong framing. Bitcoin is less about what you believe and more about what you can verify.... right?
moving hashrate and operations from China to USA was indeed a wild ride. But my experience at BTC.com was even wilder! The mining operations back in those days were very rudimentary and literally in the middle of nowhere. No one had any idea what they were doing tbh, lol.
we grew a lot because it was a great pool and team, we offered a lot of innovative things like hashrate switch. as for the decrease... i left a couple of months after the texas move, so dunno. ask the new guys that came in after me :)
i get this question a lot and to be honest with you, it has little to do with bitcoin mining but with how the world works. the world manufacturer is China... the best chips are from Taiwan/Korea. The FW is locked by the OEM for business reasons (not saying that's good or bad it's just the way it is). It's not an easy fix. I think firmware has the best chance.... and we do have non OEM firmware out there, and Proto is working on open source FW. Not to mention the mining management software by Tether. So, things are moving in the right direction.
it's KYB. Realistically, we decided to focus on large operators to actually try to push the needle of decentralization. We are after the big hashrate. More hashrate building their own blocks = the better.
Yes I do. If the miner see's more value being generated by building their own block then they will switch. Miners are concerned about their bottom line, first, ideology second. Best is to make the case that they will earn more if they build their own block, that's our goal, that's what we're doing.
Sure thing. We provide added value on top of the block our miners build. Miner builds their own block. They are then able to merge-mine RSK, earn 100% of it back. Able to signal any BIP. Can get their branded block (with their logo!) on mempool.space. Are able to check that all shares that have been sent have been paid 100% correctly. and we will continue to add different revenue/value on top of the block. Actually, next week we release a new revenue-generating-addition. Super excited about it!!!
Hi Alejandro. I’ve recently started working alone on an early-stage project. It’s still too early to share the details publicly, but I’m building it from the ground up.
From your experience building and scaling mining operations, what is the most important assumption a solo founder should test before investing heavily in infrastructure? Looking back, what would you validate first if you were starting again today?
Alejandro, I have a question. Bitcoin managed to decentralize money, but it seems we are still facing challenges decentralizing other layers (mining, exchanges, education, etc.). From your experience, what do you think will be the next big battle for sovereignty within Bitcoin?
to be honest with you, back in the day, I had a strong understanding of all the different things going on in bitcoin. but nowadays, it's already quite a lot to stay on top of just bitcoin mining and pools. So i stick to that. For me my mission is to decentralize bitcoin mining via miners their own blocks and i'm committed to that mission.
yes. miners that switch over to AI lower the mining difficulty, thus it is a great thing for bitcoin mining, allows for new entrants and current miners to grow!
While I agree that mining pool centralization is concerning, what lesson are we to take from Poolin? They were huge in 2019...but just announced bankruptcy. Is Poolin some special case, or is it that Bitcoin always has an antipathy to the top dog?
in bitcoin mining, there is always big dogs that come and go. new entrants bring better tech or better offering which attracts the current/new hashrate. That's what we are trying by building various extra revenue generating features on top of the miners that build their own block on our pool. Like, for example, miners that actually build thier own block with Sv2 can enjoy all of the merge-mined RSK coins. 100% of it. Or can signal for any BIP. Or get their block branded on mempool.space with their logo. Or have full transparency that their shares are being paid correctly. We will be adding more revenue and valuable features on top of their blocks.
Do you think Bitcoin mining is destined to be the energy buyer of last resort? By which I mean will most mining actually occur at a loss but pencil because people are mining with waste/stranded energy or reusing heat or ideologically mining?
I think this is more related to home mining or using miners as a heat source. Miners that set up mid to large operations definitely will not want to mine at a loss, of that, i am 100% certain.
altruistic mining with a bitaxe will always go on, and more power to them. but no one is going to switch a multi-million dollar operation to a pool for altruistic purposes. I think mining is pretty decentralized today. I know miners across the globe. What IS centralized however, are the pools. That's where we come in ;)
no I don't think so, at least not in it's current form. I've followed those projects from the very beginning... one very important thing to always consider is that miners are NOT usually technical. We made setting up a Sv2 proxy as simple as it can possibly be and still miners believe it's complex. So we continue trying to improve the UX - it's an ongoing effort
Wow, thanks for sharing this update! As a teenager from Switzerland who is just starting to learn about Bitcoin, these kinds of posts are super helpful to understand the ecosystem. Keep it up!
you were honest twice and the two answers don't square. miners aren't technical, and you're after the big hashrate. sv2 job negotiation is a real win but it only decentralizes if the small miner can actually run it, and the easy button you're building goes to the guys who already run the big pools
What’s your current take on pool payout schemes?
There needs to be more transparency. This is one of our core tenets. If miners mine with us and build their own blocks they are able to verify that all payouts are 100% correct. I believe when miners get used to this they will not switch to non-transparent pools. It's only a matter of time.
what is view for potential trend with fee as part of block reward? will there expected growth from any additional streams or will be stagnation for some time?
This is a key question. Our premise is simple: when miners build their blocks through DMND’s Stratum V2 implementation, they can unlock new, additional streams of revenue. We’ve already built the foundation and launched the first key revenue streams. Next week, we’ll introduce another. it is a true paradigm shift in how miners can earn.
Why rootstock?
oh and btw, we intend to add all major merge-mining coins!
Way to embrace your shit coining!
that's the answer i was expecting, let it flow, baby.
Bitcoin is a big tent. You have to make a living. I don't want you to think I'm just trying to heap maxi toxicity on you. I do have an aversion to altcoins, but regarding merged mining, I understand the economics, but I do think it sort of runs counter to your entire thesis that allowing the construction of blocks will help mining decentralization. It seems the main focus of your custom templates may serve to actually make it easier for big miners to further centralize with these additional altcoin fees. I know we probably come from very different perspectives. I'm open to listening. How do you see it as increasing decentralization?
80% of the bitcoin mining network merge-mines it now (i believe it's the top merge-mined coin) and the team behind RSK are highly technical and understood what Sv2 is... so it was only a natural fit!
I didn’t get the question. What’s the connection with Rootstock?
Maybe I should have elaborated. Rootstock (and merged mining generally) can tend toward further centralization, as smaller miners find it even harder to compete with miners earning rBTC. There is of course the additional "shitcoin" stigma too.
all pools provide merge-mining. miners are used to it and expect it.
Check out one of my projects, the Merge Mining Monitor, where I reveal the merge mining attribution of each Bitcoin block (and also track other data of interest, most importantly, stale blocks "embedded" in the history of merge-mined chains).
https://mmm.deadmanoz.xyz/
P.S. the data seems to indicate that Foundry are no longer merge-mining: https://mmm.deadmanoz.xyz/?view=findings&finding=foundry-exits-rsk-fractal-2026-06
yes, i love your project. spent hours looking at juicy stuff
All the big players, anyway, right? I don't think Braiins, Ocean, or P2Pool do, but maybe I'm wrong. Your focus is industrial, so I see your point.
almost certain that Braiins does merge-mining. p2pool... no one uses. If ocean doesn't, then their miners are earning less for their hashrate. shrug
What's something you believe about bitcoin that hardly anyone agrees with you on?
Tried to think of something witty, but couldn’t. I think “believe about Bitcoin” is the wrong framing. Bitcoin is less about what you believe and more about what you can verify.... right?
You can't verify there will be people mining bitcoin in 5 years, can you? You can believe/hypothesize there will be.
you're right. i misunderstood you question. yes in 5 years i believe more and more nation states will be mining - let's see!
Can you tell us a little about your experience at Poolin? It must have been quite a ride.
moving hashrate and operations from China to USA was indeed a wild ride. But my experience at BTC.com was even wilder! The mining operations back in those days were very rudimentary and literally in the middle of nowhere. No one had any idea what they were doing tbh, lol.
How did Poolin reach 30%+ hashrate share so quickly? And lose that share just as quickly?
we grew a lot because it was a great pool and team, we offered a lot of innovative things like hashrate switch. as for the decrease... i left a couple of months after the texas move, so dunno. ask the new guys that came in after me :)
Do you feel very optimistic about Bitcoin right now?
Always, sir.
How concerned should I be about the lack of open source miner firmware?
and about the centralization of miner manufacturing?
i get this question a lot and to be honest with you, it has little to do with bitcoin mining but with how the world works. the world manufacturer is China... the best chips are from Taiwan/Korea. The FW is locked by the OEM for business reasons (not saying that's good or bad it's just the way it is). It's not an easy fix. I think firmware has the best chance.... and we do have non OEM firmware out there, and Proto is working on open source FW. Not to mention the mining management software by Tether. So, things are moving in the right direction.
This? mdk.tether.io
Do you think very many people are using it?
i know some are and i'm sure as things develop more and more will.
Why KYC/AML? Is it to attract big corporate miners? Are you also going to market to plebs?
it's KYB. Realistically, we decided to focus on large operators to actually try to push the needle of decentralization. We are after the big hashrate. More hashrate building their own blocks = the better.
Do you anticipate a high demand for large industrial miners to construct customized blocks?
Yes I do. If the miner see's more value being generated by building their own block then they will switch. Miners are concerned about their bottom line, first, ideology second. Best is to make the case that they will earn more if they build their own block, that's our goal, that's what we're doing.
I know you don't have all the time in the world here, but this is a worthy goal. Can you possibly give a short synopsis of that case?
Sure thing. We provide added value on top of the block our miners build. Miner builds their own block. They are then able to merge-mine RSK, earn 100% of it back. Able to signal any BIP. Can get their branded block (with their logo!) on mempool.space. Are able to check that all shares that have been sent have been paid 100% correctly. and we will continue to add different revenue/value on top of the block. Actually, next week we release a new revenue-generating-addition. Super excited about it!!!
Hey mate! What’s your take on bitcoin miners balancing energy grids?
it's a great way to get mining 'accepted' by local authorities.
What's the worst thing DMND could do to its miners today even with full Stratum V2?
well for one, we would never switch an endpoint that miners are mining on to a forked coin!!!
Hi Alejandro. I’ve recently started working alone on an early-stage project. It’s still too early to share the details publicly, but I’m building it from the ground up.
From your experience building and scaling mining operations, what is the most important assumption a solo founder should test before investing heavily in infrastructure? Looking back, what would you validate first if you were starting again today?
start with second hand machines, learn the ropes and then get the new shiny beastly asics
That makes sense learn the operational lessons on cheaper hardware before committing serious capital to new ASICs.
Beyond the machines themselves, which hidden cost surprised you most when scaling: power, cooling, downtime, repairs, or something else?
This is a question asked in advance by @satoshiplanet:
Alejandro, I have a question. Bitcoin managed to decentralize money, but it seems we are still facing challenges decentralizing other layers (mining, exchanges, education, etc.). From your experience, what do you think will be the next big battle for sovereignty within Bitcoin?
to be honest with you, back in the day, I had a strong understanding of all the different things going on in bitcoin. but nowadays, it's already quite a lot to stay on top of just bitcoin mining and pools. So i stick to that. For me my mission is to decentralize bitcoin mining via miners their own blocks and i'm committed to that mission.
miners building their own blocks*
Thanks for taking the time to hang out!
I notice that lots of bitcoin miners are pivoting to AI. Is this good for Bitcoin?
yes. miners that switch over to AI lower the mining difficulty, thus it is a great thing for bitcoin mining, allows for new entrants and current miners to grow!
This is probably unfair to ask, but as hashrate has been trending down since last fall, do you see it continuing down for some time to come?
if i knew that answer, i'd probably be on some beach sipping a nice refreshing drink! :P
While I agree that mining pool centralization is concerning, what lesson are we to take from Poolin? They were huge in 2019...but just announced bankruptcy. Is Poolin some special case, or is it that Bitcoin always has an antipathy to the top dog?
in bitcoin mining, there is always big dogs that come and go. new entrants bring better tech or better offering which attracts the current/new hashrate. That's what we are trying by building various extra revenue generating features on top of the miners that build their own block on our pool. Like, for example, miners that actually build thier own block with Sv2 can enjoy all of the merge-mined RSK coins. 100% of it. Or can signal for any BIP. Or get their block branded on mempool.space with their logo. Or have full transparency that their shares are being paid correctly. We will be adding more revenue and valuable features on top of their blocks.
Do you think Bitcoin mining is destined to be the energy buyer of last resort? By which I mean will most mining actually occur at a loss but pencil because people are mining with waste/stranded energy or reusing heat or ideologically mining?
I think this is more related to home mining or using miners as a heat source. Miners that set up mid to large operations definitely will not want to mine at a loss, of that, i am 100% certain.
If Bitcoin mining trends toward centralization, do we just have to rely on altruism to save it? (how can small mining pools compete with FPPS?)
altruistic mining with a bitaxe will always go on, and more power to them. but no one is going to switch a multi-million dollar operation to a pool for altruistic purposes. I think mining is pretty decentralized today. I know miners across the globe. What IS centralized however, are the pools. That's where we come in ;)
are you worried about Bitcoin's security budget?
My focus is on decentralizing bitcoin mining, it's more than enough to worry about it. Can't worry about everything.
Do you think of fully decentralized pools like p2pool [v2] and braidpool will ever be the norm?
no I don't think so, at least not in it's current form. I've followed those projects from the very beginning... one very important thing to always consider is that miners are NOT usually technical. We made setting up a Sv2 proxy as simple as it can possibly be and still miners believe it's complex. So we continue trying to improve the UX - it's an ongoing effort
What do you think of drivechains and Paul Stzorc's upcoming ecash fork?
if you want to fork, fork.
Any answer for Paul Sztork?
t=848
Wow, thanks for sharing this update! As a teenager from Switzerland who is just starting to learn about Bitcoin, these kinds of posts are super helpful to understand the ecosystem. Keep it up!
you were honest twice and the two answers don't square. miners aren't technical, and you're after the big hashrate. sv2 job negotiation is a real win but it only decentralizes if the small miner can actually run it, and the easy button you're building goes to the guys who already run the big pools
deleted by author
Ah! i didn't realize you were going to make it and already asked your question. See the answer here: #1547179