L-Fi Cloud Minting
Cloud Minting is hardware rental service that works to mint LFi tokens. In the rules of the L-Finance minting protocol, the main purpose is not to produce tokens, but rather to move tokens from the total supply into the circulating supply.
Minting tokens usually requires the purchase of expensive hardware to manage and run the work, which then generates coins as a reward for the work done. L-Finance allows users to rent hardware—either a part of it or several—for a predefined period according to the contract in a remote location.
This solution makes it possible to receive minting rewards without the hassle and possible technical issues of managing hardware. Once users have rented hardware, they can put it right to work—it provides computing power and space to other users on the network. By providing terabytes and hashrate through their rented hardware, users get rewards in LFi tokens.
Work blocks for minted tokens close every hour; rewards are credited daily.
Distribution difficulty is based on the increase in temporal difficulty, the number of active clouds, and the max daily minting.
The increase in difficulty is based on three factors:
As time passes, fewer LFI tokens are able to be minted for each Cloud Minting unit.
The more Cloud Minting units increase (i.e. the hardware), the fewer tokens the single hardware will give. Every 1000 Cloud Units will equal two percent fewer coins per month. With a so-called halving of time and sales, the total number of coins distributed can differ for each Cloud unit (Megahash and Terabyte). Basically, the later the minting process hardware is activated, the lower the total number of coins minted.
The max reward daily minting is based on the maximum amount of LFI tokens possible that can be distributed in the day. Every day there is a max daily minting, determined by the LFI algorithm and by the work of all hardware.
Coin Minted for each unit – Max rewards daily minting assigned = Reserve value for the pool Reserve value for the pool will be taken for future payment in the pool.
With this system, LFi will be protected against monthly inflation.