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Demand (DMND)
Today, DEMAND (DMND) launched the first Stratum V2 Bitcoin mining pool built on the Stratum Reference Implementation (SRI), following their funding round led by Bitcoin VC Trammell Venture Partners (TVP).
This initiative marks a significant push toward decentralizing global Bitcoin mining, empowering individual miners, and moving away from the current centralized bitcoin pooled mining model.
DEMAND: A Vision for Bitcoin Mining Decentralization
Founded by Alejandro de la Torre, former Vice President of BTC.com and Poolin, and Filippo Merli, the lead developer of the open-source SRI, Demand (DMND) is on a mission: to “maximize miner profits while reinforcing Bitcoin’s decentralization.” This vision comes in response to the increasingly centralized nature of Bitcoin mining pools, an issue that de la Torre has identified over his decade-long career in the industry.
As he noted in a press release, “The Bitcoin mining industry has a key problem which I’ve pinpointed: mining pool centralization.” This realization underscores a growing consensus within the community that, for the long-term health and sustainability of Bitcoin, there is a crucial need to transition the mining ecosystem toward a more decentralized framework.
A Transition to Decentralization
As industry experts emphasize, decentralization of Bitcoin mining can help ensure a balanced distribution of mining power, making it less susceptible to manipulation and control by a few dominant pools. One critical tool in this transition is Stratum V2, a revolutionary open-source initiative co-led by the SRI team and various Bitcoin developers globally. This technology aims to return control of block creation to individual miners, improving security and efficiency compared to its predecessor, Stratum V1.
Demand’s Stratum V2 Bitcoin Mining Pool
After successfully launching a solo mining pilot in late 2023, DMND has focused its efforts on advancing the SRI through innovative testing and development. One of their standout contributions is a novel mining rewards payout system known as SLICE. This approach combines elements from Pay Per Last N Share (PPLNS) and Stratum V2’s Job Declaration, creating a system designed to maximize miner payouts while eliminating hidden fees typically associated with traditional mining pool payment methods like Full Pay Per Share (FPPS).
Additionally, by utilizing Stratum V2, Demand benefits from enhanced security features, such as end-to-end encryption to protect against hashrate hijacking—where malicious actors can redirect a miner’s hashrate to their own advantage—while reducing hashrate waste and improving data transfer efficiencies. This not only lowers operational costs but also strengthens the overall resilience of the mining operation.
Exciting Opportunities for Miners
In a further demonstration of their commitment to the mining community, DMND has announced an opportunity for miners to apply as launch partners directly via their website. Miners who join the pool by March 28 will enjoy a groundbreaking offer of 0% fees for the first two months and will secure a unique two-year founding miner agreement.
A New Era for Bitcoin Mining
The ongoing efforts to develop and implement Stratum V2, alongside innovative frameworks such as OCEAN’s Decentralized Alternative Templates for Universal Mining (DATUM), signify the early stages of a renaissance in the decentralization of global Bitcoin mining.
We find ourselves in a historically significant moment for Bitcoin, characterized by increased ETF inflows, strategic governmental initiatives such as the U.S. government’s Strategic Bitcoin Reserve (SBR), and innovative uses of Bitcoin mining for rural electrification in Africa. Reinforcing Bitcoin’s core properties has never been more crucial to avert the risks of it becoming a compromised project.
DMND’s Stratum V2 pool serves as a testament to the commitment of global stakeholders to enhance and protect Bitcoin as a $1.6 trillion asset for current and future generations, heralding an exciting new chapter for Bitcoin mining.
