Topic: Nxt - Mining profitability (Read 8146 times)

Anyone got an equation to find out the time?

you are probably doing nothing wrong, you can check when you will get your next reward at http://localhost:7874 (while running wallet) its under the blocks menu thing

but your reward is very small (0.05% i believe) and it takes longggg before you get it, up to multiple weeks

I have 250 next, how many next will I earn per day? I also left the browser open for 24 hours and not even 1 next??

Any suggestions on what I might be doing wrong??

Fixed.

1 NXT is minimum value. We already saw 1000 NXT per block rewards.

Nxt will implement colored coins, a decentralised blockchain based stock exchange.  You will be able to exchange altcoins using the Nxt block chain, i.e., NXT will be the base currency for a massive p2p on-line alt coin stock exchange.

Reference: https://bitcointalksearch.org/topic/nxt-descendant-of-bitcoin-updated-information-345619

Nxt is purely proof-of-stake and, therefore, requires no CPU for mining.  The block reward is the transaction fee.  Currently, NXT requires a transaction fee of at least 1 NXT for any transaction.

The number of blocks a miner can mine depends on the number of NXT the miner owns (i.e., his/her stake).

The formula for the number of blocks a miner can mine is

blocks_per_day(STAKE) = STAKE*(AVG_BASE_TARGET/100)/694444
= STAKE*AVG_BASE_TARGET/69444400

STAKE is the number of NXT you own.

The AVG_BASE_TARGET is a network parameter that varies over time that represents how much of the money supply is active for POS mining.  You get this number by averaging the last K base targets (the little red and white target icon under "Recent blocks").

Reference: https://bitcointalksearch.org/topic/m.3726410

Now the question is: how many Nxt could you expect to mine per day if Nxt becomes the defacto online exchange for crypto currency?

Each block will contain multiple Nxt, at least 1 for each transaction.  So how many transaction will there be per block?  Recent stats on the bitcoin block chain show 98753 transactions over the last 177.00 blocks.  So, that's about 557 transactions per block.

Reference: http://blockchain.info/stats

But Nxt has 1440 blocks per day (bitcoin has should have 144).  So, we can divide 98753 by the number of Nxt blocks per day: 98753/1440 = 68.57 Nxt transactions per block.

So, you could expect 68.57 Nxt transactions per block.  If Nxt is traded as much as BTC.  It could actually be more though, because Nxt could facilitate trading across all different types of crypto currency.

Our estimate for the amount of NXT per day is

nxt_per_day(STAKE) = 68.57*blocks_per_day(STAKE)

====

So for AVG_BASE_TARGET = 1000 and STAKE = 1000000

blocks_per_day(1000000) = STAKE*AVG_BASE_TARGET/69444400
= 1000000*1000/69444400 = 14.4 Nxt blocks / day

nxt_per_day(1000000) = 68.57*14.4 = 987 NXT /day

====

But, how much is 987 NXT worth?  How much could you earn per day?

Well what are the average transactions fees mined from a single bitcoin transaction?

Total transaction fees over the last 177 bitcoin blocks is 31.825982 BTC.  So that's 31.825982/98753 = 0.000322 BTC / transaction.

Reference: http://blockchain.info/stats

Nxt has 68.57 transactions per block, so we can calculate the average BTC value per Nxt block: 0.000322*68.75 = 0.022 BTC / Nxt block

Right now that is about 0.022 * 1080 =  $23.76 / next block.

So, if you get 14.4 Nxt blocks per day, then that is about $342 / day or about $10,000 / month.

There are a lot of assumptions here, but the basic parameters guessed at are:

- STAKE
- AVG_BASE_TARGET
- NUMBER OF TRANSACTIONS PER NXT BLOCK (estimated from BTC)
- VALUE OF MINIMUM NXT TRANSACTION FEE (estimated from BTC)

It will be interesting to hear your replies and all the errors you spot in my quick calculations.