How it Works
How it Works
Loka Labs operates bitcoin mining facilities and fractionalized the hardware ownership to their users using NFT. Users who hold the FMH (Fractional Mining Hardware) gets bitcoin yield every 24 hours, minus fees (management fees, hosting fees, and electricity expense)
Loka is launching on Stacks, an using sBTC to distribute the yield, which is pegged 1:1 with BTC.
Alongside with sBTC yield, users will also rewarded with $LKV (Lokaverse) token as described in the LKV Tokenomics
Mining Facilities
The first mining facility that Lokalab operates is located in power plant with max capacity of 10MW, but the electricity demand is only maxed at 5MW.
The hardwares will be latest edition of high efficiency ASICS machines using 20 feet containers plugged in directly to hydroelectric power plants absorbing the excess energy scalable to ~100 MW in Gayo Lues Aceh, Sumatra island, Indonesia
Fractional Mining Hardware NFT
ERC-721 Standard Non Fungible token on Stacks chain that represents the ownership of fractional mining hardware. FMH will have several tiers with different price, started from 100 USDC.
Buying NFT
User will go to Lokaverse website (https://lokaverse.io), connect the wallet and buy the Fractional Mining Hardware NFT using USD-pegged stablecoin.
Claiming Bitcoin mining yield
The NFT will act as an access pass to the dashboard where users can claim the bitcoin yield. Since the NFT is in Stacks, the yield will be pegged in to sBTC that can be peg out anytime to BTC by user.
Staking NFT
To claim the bitcoin yield, users simply need to hold the NFT even without staking. However, staking the NFT will make the user eligible to claim additional LKV token reward and transaction fee from NFT transaction
Fees & Expenses
To sustain the mining facility operation and profitability of the platform, Loka Labs imposed some fees that are deducted from the mining yield.
Management Fee
Loka Labs is charging 7.5% management fees from the bitcoin mining yield. This fee is automatically deducted right after we receive bitcoin from the mining pool.
Hosting Fee
This fee is to sustain the day-to-day operation in the mining facility including regular service of the hardware. Hosting fee will be charged in $ but converted from the bitcoin yield of NFT holders.
Electricity Expenses
Electricity will be charged based on usage for each fractional mining hardware users have. There will be a live power meter that feeds real-time data that holders can monitor.
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