Honey Mining Intro

Honey Mining Intro


We are living in a very progressive time and crypto-currencies penetrate deeper and deeper into our lifes and at the dawn of becoming it can make many people rich.

"Honey Money" project was created about 6 months ago.
Basically for self-development and as an attempt to create something "on your knees", and see what will come of it.

We started out as a project involving the distribution of XRB coins as a group pool, and we had to say that it turned out very well, in just one with a half month we reached the top 1 for redirected traffic, and the active audience went over 50 thousand per week.

After the closure of the XRB faucet, the project began to roll down and slowly turn into some kind of wild crap, which we clearly didn't want.

We began to actively look for options that will help our audience, as before, to earn, and therefore help to make money for us. Yes - we earned with users, but not through deception, but honestly and conscientiously working. Most of all, our attention was attracted by the so-called cloud mining, when the user just needs to invest the desired amount, and make profit in the medium and long term.

Why cloud mining ? - because the equipment for mining costs a lot of money, you can try on your home computer with a video card / processor, but it will only baubles since the complexity of mining and power networks have long gone beyond the horizon, but, you see, the reward is very much tempting and the value of crypto-currencies becomes even more attractive.

However, at the moment, such projects (cloud mining) are too "tricky" for price formation and income as well, which was the reason to create not onw (another) coin, but an instrument that would be transparent enough for all participants (and not only) and therefore will have all chances for survival.

So there idea of "Honey Mining Token" was appeared

"Why Token" - you may ask, as mentioned above, we do not need a crypto-currency, we need a crypto-tool, such tool is a smart contracts in the eco-system of the ethereum (Ethereum).

They are absolutely transparent, because all transactions in smart contracts are nested (additional) information in the ethereum transactions, and therefore also publicly available.

sample block, 17 transactions (transfers) and 4 internal transactions - which are the transactions of smart contracts
We have come to a description of the principle of Honey Mining Token, as well as general concepts related to it.

The first thing that needs to be understood is that the project is aimed at mining various crypto-currencies and requires investment of money, we in turn labored on our own, as well as by the forces of involved people (investors), collected an initial capital of $20,000 to purchase equipment.

The prices are very different due to the huge demand and despite the base price of $1650 from the manufacturer, for the collected funds we were able to buy 8 x "Bitmain AntMiner s9".

This set of 8x miners will serve as a good start for the project. And the income from these miners will serve as a guarantor, both for us and for all who wish to join the project.

We did not ask for money from users, did not arrange fundraising and did not do ICO - for its launch.

We ourselves have passed the initial stage, and only now we launch the ICO, but in our case it is rather an IPO, what's the difference?

ICO - initial coin offering
IPO - initial public offering

In the concept of our project, tokens are an analogue of shares, which of course can later be sold / exchanged.

Why shares? - because every month, collecting "in a bunch" income from the miners, it will be credited to the account of the contract (account of the token) - and each participant of the system (holder) - will be able to withdraw his income (dividends) via smart contract function.

Consider an example

A "Dmitry", decided to buy our tokens at $12.000.

* let's ignore the details of the bonuses *, and we will take the basic price of the token ~ $1 (all depends on the price of the etherium (ETH/USD), but at the moment the price is approximately that)

So for 12 thousand dollars Dmitry will receive 12 thousand tokens.

According to the smart contract, for every third generated token, developers will receive one token, which means that with the purchase of Dmitry, developers will receive 4000 tokens.

The total number of tokens is 16,000. Then for $12.000 we will buy 4 miners.

Aprproximately 1 miner brings about $ 19 per day, excluding of electricity costs, then for the month total income will be: 19 * 4 * 30 = $2280

An important factor in mining is the constant increase in capacity (due to the constantly increasing complexity), so 30% of the total revenue will be spent on the purchase of new equipment (re-investment).

2280 - 30% ($ 684) = $ 1596, and now $1596 will be divided proportionally between the token holders.

Important: tokens should be on account, which belongs to you, because dividends will be credited to addresses that have tokens, if tokens will be stored on web wallet, Blockchain for example, or any others that do not give you access to private keys, then you can not receive dividends !!!

So $1596 needs to be distributed among holders: "Dmitry" will receive: 12000 * 1596/16000 = $1197,
where 12.000 - the number of Dmitry tokens,
1596 - the amount to be distributed,
16000 - the total number of tokens
and developers will receive: 4000 * 1596/16000 = $ 399

In this example, only 2 participants (holders) are described, for ease of perception, but the percentage of income would be at the level of 7-9% per month from the invested amount. Also every 1-3 months (depending on the speed of buying up tokensand delivery of miners), the profit will increase, because the total farm capacity will increase.

In view of the fact that 30% of income will be spent on re-investing, and hence the income from connection of new equipment will increase by 30%, from 7-9% to 9-11%, then to 12-14%, and so on.

Reasonable question

Why to invest $12.000 "Dmitry" decides to invest in this project, rather than buy miners and not start the mine by himself.

The answer on the surface: as already mentioned, mining has long become not just a business, but an industrial business, if "Dmitry" had bought 4 miners, he would later have to invest not only the funds which would be received from miner, but additional ones, as well. this will require equipment.

For sure miners do not require 24 hour control, but you need to watch. Important is the arrangement of the premises, ventilation, security in the end, as well as monitoring, because if for several miners everyone can quite see at home (although the noise from them will make you think about placement), but if we are talking about 10/20/50/100 miners, the task no longer seems so trivial. Appear costs not only to the electricity, but also for the described above cases, and some times for repairs.

* Yes the manufacturer gives a guarantee, but while the miner will be on repair, he will not bring money. All this takes time (and time is money), which for many is a key factor.

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