Contents
Introducing Infinity Hash
Infinity Hash’s community-driven share system is a significant improvement over other more conventional mining investments. The way it works is simple: Infinity Hash manages a Bitcoin mining operation, and issues shares that entitle holders to a percentage of the mining rewards. Investors can then buy these shares to participate in the daily mining earnings from the whole operation.
However, unlike conventional mining investments, Infinity Hash’s system reinvests half of the rewards obtained by the miners into acquiring more mining equipment. This helps maintain and potentially grow over time the hashrate backing the shares, and thus also their value. By doing so, Infinity Hash addresses many of the typical challenges associated with Bitcoin mining, such as high upfront costs, decaying returns, and operational complexities. You can learn more about Infinity Hash here
xIHS: A Solana Token Backed by Bitcoin Mining
Building on the success of Infinity Hash shares (IHS), the xIHS token represents the most natural next step. Essentially, xIHS is a Solana token resulting from staking IHS into a dedicated pool, where mining rewards are reinvested into additional IHS. This is designed to offer the benefits of daily rewards without the need to receive daily transactions. Instead, the token accrues value day after day, with holders having the option to realize their earnings at any point by selling it on the open market.
In addition to that, unlike IHS holders, xIHS holders also receive 50% of the revenue generated by Infinity Hash through fees. That makes holding xIHS slightly more profitable than holding IHS. Both will benefit from the daily rewards, but the xIHS investment will get an extra boost from the revenue share.
Understanding the Mechanics of xIHS and IHS
But how does it all work? How do IHS and xIHS interact? Let’s take a closer look: When IHS holders stake their shares, they receive in return xIHS tokens based on the staking pool’s IHS/xIHS ratio. Meanwhile the IHS they staked go to a dedicated staking pool. In this pool, the IHS continues to generate rewards, which are automatically converted into additional IHS. Over time, this makes the staking pool accumulate more and more IHS.
Later, when a user redeems xIHS, their xIHS tokens are burned, and the pool releases the corresponding IHS to them. The amount they will receive is once again based on the prevailing IHS/xIHS ratio at the moment of redemption. This maintains the correct balance between xIHS and IHS, avoiding dilution.
What Is Exactly the Ratio?
The ratio is simply how much IHS is in the staking pool for every xIHS token issued to the stakers. When the staking pool was created, the IHS to xIHS ratio was 1, because there were the same number of xIHS tokens created as IHS were in the pool. That is, if someone had redeemed their xIHS tokens for IHS at that point, they would have received 1 IHS per xIHS token they held. However, as the staking pool reinvests the rewards into additional IHS, the IHS in the staking pool is constantly growing, while the corresponding amount of xIHS token owned by the staker remains constant.
As a result, when the depositor eventually redeems their xIHS tokens, they will receive a larger amount of IHS than they deposited. In other words, the ratio of IHS to xIHS has increased. With this, investors can obtain a profitability from holding xIHS tokens without directly receiving the Bitcoin mining rewards that their staked IHS is generating.
Advantages of xIHS
xIHS provides several compelling advantages to investors:
- It adds flexibility by allowing holders to keep the tokens in their own wallets, send them, or swap them any way they choose.
- The absence of payout transactions avoids creating taxable events, reducing taxation expenditures for the holder.
- As mentioned, xIHS holders obtain a slightly higher profitability thanks to the revenue share system.
- The token’s liquidity on decentralized and centralized exchanges enhances accessibility and trading flexibility even further.
Revenue Streams and Future Prospects
Infinity Hash plans to channel various revenue streams into the xIHS-pool to increase the profitability of holding xIHS even further. These include trading fees, withdrawal fees, listing fees, and profits from liquidity pools. Infinity Hash will put to a vote which fees should contribute to the xIHS revenue share program. Some possibilities include:
- 50% of trading fees from the swap feature in our dashboard.
- 50% of withdrawal fees for special upcoming features such as automated withdrawals.
- 50% of listing fees for Infinity Hash reward pools. Token and coin projects may pay a fee to be added to the Infinity Hash reward pool system so that Infinity Hash users can select them as payout.
- 50% of profits from liquidity pools. As mentioned, Infinity Hash will be providing liquidity for xIHS on DEX’s and earning liquidity provider fees.
Conclusion
In essence, the xIHS token represents a significant step forward in the evolution of cryptocurrency. By combining the stability of Bitcoin mining with the versatility of a token model, xIHS provides an investment opportunity for those who want to profit from Bitcoin mining with none of the entry or exit barriers. This makes xIHS an excellent option for investors looking to profit from Bitcoin mining without the time, capital, or expertise typically needed to obtain a profit from other more conventional options.
