Mining Fundmeans a Bitbon System[i] component whose Assets[i] are designated exclusively in Bitbons[i] and are formed from the sources that do not contradict the Bitbon System Public Contract[i]. The Mining Fund’s objective is to provide a mechanism, which allows accumulating received Bitbons and redistributing them among the Bitbon System Miners[i] based on the mining method(s) chosen by each Miner, in accordance with Clause 61[i] of the Bitbon System Public Contract.
Bitbon System means an integral blockchain-based decentralized information system, which allows its Users to fully own their Assets, i.e. to record their property right to Assets in the form of their unique digital copies by completing the Asset Digitization Procedure in order to implement accounting and management as well as safe and equal exchange of the given Assets between the Bitbon System Users without intermediaries and money. The key component of the Bitbon System is Bitbon.
Asset means property and/or (property, non-property) rights of a natural person and/or business entity, which represent tangible assets, including Digital Assets (Bitbon, Bon), crypto currency, money and various kinds of works, services.
Bitbon means a Digital Asset, which is a token of access and provides the Bitbon System User with certain access rights to the opportunities of the Bitbon System in accordance with the number of Bitbons that such a User has. Bitbon is represented as an alphanumeric identifier and registered in the Blockchain with an ability to circulate only in the Bitbon System. Bitbon is a unit of measurement of the exchange value of all Digital Assets and ensures their ability to circulate in the Bitbon System. Bitbon is created and given unique attributes and properties based on the Bitbon System Public Contract and the Bitbon Protocol.
Bitbon System Public Contract means a digital document, a type of social contract of statutory nature, basic constitutive agreement between Simcord Company, the founder of the Bitbon System, and all Bitbon System Participants, where Simcord also acts as the Bitbon System Operator.
Bitbon System Miner means a Bitbon System User who undertakes obligations to participate in supporting and developing the decentralized environment for the Bitbon System functioning, by allocating for these purposes his/her resources.
Clause 61. The Bitbon System User in the status of a Bitbon System Miner undertakes obligations to participate in supporting and developing the decentralized environment for the Bitbon System functioning. As the founder of the Bitbon System, Simcord Company establishes that 10% of the number of Bitbons received by the Bitbon System Capitalization Fund in the process of Obventing over a certain time period, as well as 40% of the commission for transferring Digital Assets within the Bitbon System in accordance with Clause 54 hereof, are allocated to the Mining Fund. The activity of the Bitbon System Miners initiates the algorithm of redistribution of Bitbons from the Mining Fund to the Assetboxes of such Miners.
The Bitbon System foresees two mining methods:
- Consensus building mining. In order to participate in consensus building in the Bitbon System, the Miner allocates a certain amount of his/her Bitbons. The Miner’s degree of participation in the process of Bitbon redistribution is determined based on the amount of allocated Bitbons and his/her activity in the process of organizing the Miner Community in accordance with the Appendix “Mining in the Bitbon System”, which is an integral part hereof.
- Infrastructure building mining. In order to provide infrastructure of the Bitbon System, the Miner allocates his/her resources. The degree of participation of each Miner in the process of Bitbon redistribution depends on technical properties and characteristics of the resources provided by the Miner, including the quality and speed of the Internet channel, CPU time and the amount of memory for long-term data storage, in accordance with the Appendix “Mining in the Bitbon System”, which is an integral part hereof.
Bitbons from the Mining Fund are redistributed among the Bitbon System Miners based on the quantity and quality of the resources utilized by each Bitbon System Miner individually.