HashCloud Mining Rewards Protocol

Overview

HashCloud introduces a dynamic and transparent mining rewards framework purpose-built for decentralized GPU compute. The model evaluates every miner based on:

  • Real computational throughput

  • Staked token contribution

  • VIP tier multipliers

  • 14-day epoch scoring

Unlike static mining systems, HashCloud’s reward model adapts each epoch to reflect network activity, compute supply, and governance updates.


1. Reward Formula

The core of the reward mechanism is built on three components:

base_power = loops_done / compute_time
final_score = base_power * stake_multiplier * vip_multiplier

Each miner’s reward is proportional to the verified compute they provide and their economic + community participation.


2. Base Power

Definition

base_power measures the miner’s raw GPU throughput.

  • loops_done — Total validated GPU computation loops in an epoch

  • compute_time — Total active processing time (seconds)

base_power = loops_done / compute_time

Purpose

  • Normalizes differences between GPUs

  • Rewards consistent uptime

  • Reflects real performance without vendor bias

Integrity

  • Every loop undergoes Merkle Subset Auditing

  • Invalid or manipulated results are rejected

  • Timestamped logs ensure session integrity

This ensures base power represents real computation.


3. Stake Multiplier

Staking increases a miner’s reward potential while strengthening ecosystem liquidity.

stake_multiplier = 1 + (staked_amount / stake_ratio)

Key Notes

  • Multiplier increases linearly up to a capped maximum (e.g., 2.5×)

  • Unstaking before epoch end may reduce multiplier credit

  • Boost is recalculated every epoch

Benefits

  • Stabilizes token circulation

  • Rewards long-term participation

  • Supports predictable liquidity flow


4. VIP Multiplier

HashCloud’s VIP system enhances rewards for active community members.

vip_multiplier = 1.0 → 3.0
VIP Tier
Requirements
Bonus

Bronze

Default

1.25x

Silver

2 active epochs + minimum stake

1.5x

Gold

Contributor / consistent miner

1.75x

Diamond

Governance role / validator participation

2.0x

VIP tiers reset and update every epoch.


5. Epoch Distribution Model

HashCloud operates using 14-day epochs.

Epoch Steps

  1. Aggregate all verified compute data

  2. Compute every miner’s final_score

  3. Sum global network score

  4. Distribute rewards:

miner_reward = (final_score / total_network_score) * reward_pool

Adaptive Reward Pool

Reward pool recalibrates each epoch based on:

  • Protocol revenue

  • Marketplace fees

  • DAO contributions

  • Unclaimed or penalized rewards

The system scales naturally with ecosystem growth.


6. Reward Pool Inflow

The reward pool is fed from multiple on-chain sources:

Sources

  • % of network transaction fees

  • Revenue from compute or marketplace integrations

  • Community/DAO injections

  • Adjustment factors (penalties, unused allocations)

Sustainability

By tying rewards to network activity, the system creates a self-balancing economic loop.


7. Verification & Anti-Fraud

HashCloud uses Merkle Subset Auditing to verify compute results while keeping bandwidth low.

Security Features

  • Miner submits all loop digests

  • Server verifies a random subset

  • Any failed proof invalidates the entire batch

  • Probabilistic detection defeats fake-loop attempts

This ensures the network rewards only honest computation.


8. Governance Integration

The governance council or DAO can modify system rules:

  • Adjust stake multiplier ratios

  • Change epoch length

  • Select reward pool token composition

  • Update VIP rules

  • Approve mining protocol upgrades

Governance ensures the system evolves fairly and transparently.


9. Future Extensions

Planned upgrades include:

Coming Soon

  • Dynamic GPU Benchmarking

  • Smart Epoch Rebalancing

  • Cross-chain reward distribution

  • AI-driven compute difficulty tuning

These expansions aim to scale HashCloud into a global decentralized computation layer.


Summary

HashCloud unifies verified compute, staking economics, and community governance into a single reward protocol.

The result:

  • Fair

  • Transparent

  • Scalable

  • Hard to cheat

  • Sustainable long-term

Miners who provide real GPU power — and participate in the ecosystem — earn the highest rewards.

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