Merkle Mine

Introduction

Merkle Mine is an algorithm that allows for the large-scale, decentralized distribution of token during the genesis state. It was first introduced by Livepeer.

At the beginning of the first period, known as the slow start, accounts that pass a minimum token threshold at a designated block number can submit proofs of their own accounts to generate token for themselves. Submitted proofs must authenticate the fact that the account was included in this genesis state. If no proof is submitted by an account during this period, which lasts about three months, others will be able to receive portions of the unclaimed tokens in the next period.

At the end of the slow start, the claiming period begins for a 15 month duration in which 3rd parties can participate to submit proofs on behalf of others’ accounts to split the generated unclaimed tokens. If a 3rd party successfully submits a proof of another’s account, the generated token would split evenly between the caller and receiver. As time progresses, 3rd parties become more incentivized to submit proofs of others’ accounts.

The Merkle Mine is a method through which an initial state of token can be set, thus creating the environment necessary for staking to begin. It is important to note that Merkle Mining is not a proof-of-work mining algorithm.

Suggested Reading

Introducing the MerkleMine by Livepeer

Merkle Mine —A short note by Keerthi Nelaturu

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