Gridcoin weekly project update - 09/Apr/18

Here is another weekly Gridcoin project update where I look at the project chart developments and highlight an interesting aspect. This time I would like to present the impact if we would remove team requirements.

There have been ongoing discussions and articles on Steemit (eg. here and here) to remove Gridcoin team requirements in an effort to increase the demand for the coin. The removal of this requirement is important because a lot of BOINCers are not willing to leave their current team and as such can’t or will not mine Gridcoin. If this limitation would be removed, more users could crunch the coin leading to additional transactions and driving up the price. Obviously, this will also increase the computing power on whitelisted projects, which in effect reduces the earnings.

To assess the impact, I have built a simplified model based on a number of assumptions:

• When team restrictions are lifted, all BOINC users in teams will apply and crunch for Gridcoins. You could also consider this the best-case or worst-case scenario (depends how you look at it).
• Team-less BOINCers are excluded from the assessment as they could have joined already in the past.
• The current computing power is taken as baseline for the calculations.
• There are 24 whitelisted projects and the multiplier is 0.225.

GRC earnings without team restrictions

The table below presents the RAC output of all whitelisted projects which includes total project RAC, all teams combined and team Gridcoin only.

(source: BOINCStats)

Team Gridcoin contributes between 7% (World Community Grid) to almost 94% (Numberfields@home) of the total team RAC for the various projects.

The next table provides the earnings per project for all teams combined and for team Gridcoin based on a system with RAC of 1000 (GRC per 1k system RAC). The earnings are calculated using the following formula:

(source: Gridcoin wiki)

Where team Gridcoin is contributing only a small percentage of the total RAC output, the earnings decline is the largest with World Community Grid losing potentially the most (-93%).

(source: BOINCStats)

Maintaining the earnings level

Hopefully the Gridcoin price increase will be sufficient to offset the earnings decline (due to the extra computing power on projects). The table below shows the required price increase per project to maintain the current earnings level based on GRC price of $0.0386.

(source: BOINCStats and CoinMarketCap)

As you have seen above, World Community Grid requires the highest price increase ($0.55) to maintain the current earnings level. When we would reach this price level, all other projects are in positive territory as well.

So let’s see when this change will be implemented but until then here are the stats with the current team requirements still in place.

(source: BOINCStats and CoinMarketCap)

Definitions

• Recent Average RAC = The total amount of RAC produced by all systems within the Gridcoin network.
• Team RAC vs Overall RAC % = The proportion of RAC output team Gridcoin has produced as part of the overall RAC for the project.
• GRC per 1k system RAC = The amount of GRC you will receive for a system per 1000 RAC points. Example: You have a system which is running Rosetta@home with a RAC value of 3500. According to the chart on 30-Oct, you should gain 3.5 x 0.42 GRC = 1.47 GRC per day for this system.
• USD per 1k system RAC = The amount of USD you will receive for a system per 1000 RAC points. Example: You have a system which is running NFS@Home with a RAC of 4700. According to the chart on 30-Oct, you should gain 4.7 x $0.29= $1.36 per day for this system.

Gridcoin is an open source cryptocurrency (Ticker: GRC) which securely rewards volunteer computing performed upon the BOINC platform in a decentralized manner on top of proof of stake.

BOINC (Berkeley Open Infrastructure for Network Computing) is a distributed Internet platform and was launched beginning of 2002 and it rewards participants with credits for performed work. BOINC is an application available for multiple Operating Systems and uses the unused CPU and GPU cycles on computers to perform scientific work.

Thanks for reading. Follow me for more BOINC & Gridcoin related articles.

Image source: Header, Gridcoin logo, BOINC logo