Solana's network congestion is getting some relief as Ore project's mining activities are suspended by its creator, Hardhat Chad. This move follows Solana's recent struggles with congestion and instability.
Ore's token price surged over threefold on the news, peaking at over $300 before settling around $215. Solana's bearish trend continued amid this development, dropping from $131 to $127. Ore introduced a proof-of-work token distribution model on Solana to explore a fairer way of distributing cryptocurrency.
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Source: CoinGecko
Ore: Exploring Fair Token Distribution on Solana
Ore, a blockchain project on Solana, introduced a proof-of-work (PoW) token distribution method to explore a fairer way of distributing cryptocurrency. Often dubbed "Bitcoin on Solana," Ore attracted Solana enthusiasts since its trading debut earlier this month. Unlike Bitcoin's PoW, which is known for its high energy consumption and slow transaction speeds, Solana utilizes a proof-of-history (PoH) consensus coupled with proof-of-stake (PoS), offering high throughput and low transaction costs.
Ore was introduced as an experiment to merge proof-of-work (PoW) with Solana's high-speed transaction capabilities for a fair token distribution mechanism. After its launch, Ore quickly became the most active program on Solana by transaction count.
Source: Dune
However, amid a surge in transactions, a significant portion—up to 75% at one point—were not going through. While the situation has improved slightly, around 60% of non-vote Solana transactions still face processing issues.
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Ore's Response to Solana Transaction Challenges: Preparing for Version 2 Redesign
While often termed as "failed" transactions, Solana's challenge lies in effectively scheduling transactions, resulting in some being dropped before inclusion in a block. Despite low fees, the network faces issues when transaction costs aren't sufficient to deter spam.
This insight prompted Ore to pause mining and prepare for a Version 2 (v2) redesign. V2 aims to optimize the system, address miner advantages, and introduce incentives for token holders.
As Solana implements upgrades like v1.17.31, Ore's v2 aligns with these improvements. All Ore tokens will transition one-for-one to v2, ensuring fairness. The mining hiatus is temporary, with Ore planning to reintroduce its PoW concept under improved conditions.
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