ChainX Zero Cost Mining Guide

ChainX is the first chain of Substrate, and it is also an inter-chain asset gateway. Its token PCX can be mined through BTC lock-up mining which is secure and at zero cost.

1. What is ChainX?

At present, blockchain assets are trapped in their own systems without inter-chain division of work and collaboration.

• BTC has established the most widely accepted consensus, but its transaction efficiency is low.

• ZEC has enabled privacy protection, but smart contract is not available.

• ETH has smart contract, but it cannot migrate to the POS system.

ChainX can transfer all assets across chains in a decentralized way. Chains that have been connected with ChainX can enjoy asset connectivity.

In the future, ChainX will be able to incorporate more cryptocurrencies into asset mining and calculate their mining power based on the market value of these assets such as BTC, DOT, ETH, ERC20 token, EOS and so on.

ChainX does not have ICO or pre-mining and it strives to keep its nodes in check and deploys PoS algorithm to establish the first blockchain network that supports long-term competitive mining.

2. What is PCX and what is the value of PCX?

PCX is the Token of ChainX, 21 million in total. There is no public or private offerings, nor is pre-mining. The amount of token generated is halved every two years. The initial generation rate is 14400PCX/day, which means 10.5 million will be issued in the first two years. The team will automatically receive 20% of the tokens in the first two years for development and other expenses.

PCX is used to pay for various operations on the main network. It is the only token for node voting. At present, the pledge rate of PCX is about 70% and it will become the intermediate currency for other inter-chain tokens in the future.

Assets(BTC, ETH, ETC) entering ChainX via inter-chain deposits will be automatically converted to PCX according to the daily average exchange price, and newly issued PCX will be distribute to users according to the total value of the assets they hold.

PCX gained from mining can be used to pay miners, vote for node elections and serve as intermediate token for other inter-chain assets.

Polkadot investors can map the DOT of Ethereum into ChainX and participate in the first round of inter-chain asset mining along with BTC depositors, which is like a warm-up for Polkadot ecosystem.

3. What is the relationship between ChainX and Polkadot?

ChainX is an inter-chain asset project based on Polkadot’s Substrate. It will exist as an independent chain before Polka main network is launched.

Polkadot aims to build the underlying infrastructure to enable inter-chain message exchanges, while ChainX focuses on transferring assets across chains, and aspires to become an inter-chain gateway for assets in the Polka system.

4. Why does ChainX become the first chain of Polkadot?

• ChainX is the first chain based on Substrate, Polka’s technology framework;

• ChainX’s team is the first Chinese team working with Polkadot and it is the only Chinese development team to be displayed on the Polkadot website.

• ChainX is the first team to promote Polka technology in China. PolkaWorld which is organized by ChainX and Hashbang has already become the first Polka technology community, co-hosting several Polkadot Workshops and Meetups.

5. How to calculate the mining power of various assets?

The basic unit of mining power is PCX:

• BTC deposit mining: the mining power is 10% of the PCX/BTC average exchanging price per hour in the currency trading system. For example, the price of PCX on the currency exchange is 0.001BTC, then the 1BTC mining power is 1/ 0.001*0.1=100PCX;

• BTC lock-up mining: the same as BTC deposit mining;

• SDOT computing power: SDOT computing power is 0.1PCX;

• PCX voting mining power: 1PCX in vote is equivalent to 1PCX mining power.

PCX voting mining and all other inter-chain mining (BTC deposit mining, BTC lock-up mining and DOT mapping mining) use the same dynamic mining model, when inter-chain assets flood into the system too fast, the mining upper limit will be triggered and the fixed dividend ratio mechanism is deployed to strike a balance between inter-chain assets and internal assets. The current ratio of inter-chain assets to PCX voting mining power is 1:1, which can be adjusted through community votes, that is, the upper limit of mining power of all inter-chain assets is set at 50%, to ensure PCX voting mining accounts for 50% or more, so that at least half of newly generated PCX will be issued to PCX holders every day.

6. Are inter-chain assets such as BTC safe?

The inter-chain BTCs are kept in public multi-signed addresses with private keys controlled by the trustee which are elected in community vote and generally are well-credited institutions with strict KYC compliance.

7, The status of ChainX

So far there are more than 10,626 BTCs and 1.39 million Polka initial token DOTs in lock-up. A total of 965,250 PCXs have been mined. The network is running stably and smoothly.

The token PCX is quoted at 6.24 US dollars in exchanges(July 31), showing a slight decline from the recent peak, but it is still worth investing, for users holding BTC and SDOT could obtain PCX at zero cost.

8. How about investment returns?

▍ The theoretical return of collateralizing PCX: 0.641PCX/100PCX/day

The monthly return rate is 19.23%, which means for 100 PCX you can get 19.23 PCX. After deducting 10% node service fee, you get 17.307 PCX, so the final monthly return rate is 17.307%. ( calculated with PCX as basic unit)

▍The theoretical return of BTC deposit mining: 0.433PCX/1BTC/day

It is equivalent to 12.99 PCXs per month for one BTC invested, deducting 10% node service fee, users getting 11.691 PCX. The monthly return rate is 0.729% with PCX price being 6.24$, BTC 10000$(calculated with US dollar as basic unit)

▍ Extra income

The price of PCX will increase as it is the only rewards users want to get in mining and other activities. PCX is currently at a lower price with asset mining also in an early stage, so there are plenty of PCX available.

▍ Note

The number of PCX generated is affected by the number of collateralized BTC thus every-day fluctuations are expected and there is a possibility of revenue decline in the long run.

PCX itself is also at risk of falling in Value due to various factors in the market.

9, How to get PCX?

▍ Method 1: getting PCX by locking-up BTC

Click read more or view lock-up steps at https://mp.weixin.qq.com/s/gBHqqjd5PhDSaX62oirgcA

▍ Method 2: Buying PCX directly

At present, PCX can be purchased through Hotbit Exchange, MXC Exchange and BigONE (recently MXC and BigONE have trading promotion activities), and then transfer coins to the ChainX wallet, the address is in the upper right corner of the wallet page (marked in the following picture) and can be copied directly.

10, PCX mining steps

▍Step 1: Download the ChainX wallet

Go to the official website https://chainx.org/ and click the wallet in the upper right corner. Go to the wallet page and download the wallet. Choose a version according to your needs. After downloading, unzip the file and open ChainX Wallet.exe.

▍Step 2: Register a ChainX wallet account

Enter the wallet page, click on add new account in the upper right corner, back up the private key (mnemonic words), not by screenshot or taking photos. We suggest writing them down by hand.

Finally click on I have backed up, then re-enter the mnemonic words.

▍Step 3: Set the password

Pay attention to the first letter which should be capitalized.

▍Step 4: Select a node

In the election page, search for the node you like.

Then you will see

Choose the node, click Vote, enter the number of PCX, and finally enter the password.

Completing the above steps means that you have pledged PCX through a node and you will get the mining returns.

About Chain X

ChainX is the largest Layer-2 network of Bitcoin, based on Substrate, and will evolve into the Polkadot Secondary Relay Chain.