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I just read the proposal for "Time Locked Proof of Non-ASIC work challenge reward"

https://www.reddit.com/r/Monero/comments/86zb03/the_end_of_all_asic_miners_moneros_new/

I still don't understand how does it work exactly to deter ASIC production. From my understanding, this new algorithm will let you mine and then you have to mine again with a cpu to get the real reward? Is there a better eli5 explaination?

  • Has a similar asic resistant feature like this been implemented before in another coin?
  • What are some ways asic manufacturers can over come this new algo implementation?
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The idea behind this draft is more like an extension to PoW changes like currently to prevent ASICs overtaking a serious amount of hash rate.

However, it's proposing to time lock all mining rewards during a full period of time where one algorithm is active, between two PoW hard forks and release them only after another challenge period which might be 1-3 months only to miners who keep up their average hash rate after a PoW hard fork to a changed algorithm.

From my knowledge there are no other coins which have implemented a similar solution yet.

ASIC manufacturers would have to prove immediately after a PoW changing hard fork that they can keep up their average hash rate, otherwise they will loose all rewards locked within the last PoW duration which is now considered to be 6 months or maybe will be lowered to 3 months. So an ASIC miner would have just 2-4 weeks between final PoW algorithm code merge until the fork to create a new ASIC or would have to rent large amounts of hash rate to match their previously ASIC based hash rate in order not to loose all mined but time locked coins.

However, there are several draw backs in this proposal.

  • Every single miner would have to wait to get mining rewards for a whole PoW period plus the challenge period where you already have to pay for your hardware and electricity

  • Freshly mined coins wouldn't be distributed evenly but only after every PoW plus challenge period and might lead to a lack of coin supply for months and then a huge wave at once being distributed after a finished challenge period

  • The whole process is pretty complicated, especially the time-locking of funds and the penalty system when someone doesn't meet his previous hash rate in the challenge period and his rewards would have to be distributed among all legit miners

  • Legit CPU/GPU miners might run their mining software just during idle times and might miss their challenge losing all their already minted rewards. Also failing to upgrade your mining software immediately after a fork brings you at that risk so only somehow professionally operating CPU/GPU miners would survive

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