The mining capability is anticipated to increase purchasing demand for the system’s metaverse currency and improve income prospects for metaverse residents. Users may now purchase NFT miners and get a payout for every POLC generated in PolkaCity.
The mining function is an attempt by PolkaCity to boost community engagement and transform the platform self-sufficient. In 2022, the metaverse dabbled with a similar service in collaboration with River Financials.
Utilizing a miner NFT, people may mine POLC, the metaverse coin, throughout 2022. The metaverse teamed with River Financials to acquire Bitcoin (BTC) miners in their Texas mining operation and distribute the benefits to NFT holders according to the NFT’s purchase cost.
Now, PolkaCity is testing independently with the platform. Users may now purchase NFT miners, expand their participation in the framework of the metaverse, and receive incentives.
The Polkacity NFT miners will operate as follows:
PolkaCity mines POLC tokens in the metaverse by mining BTC.
The metaverse will then sell the newly minted BTC and purchase further POLC from users.
Throughout this procedure, POLC will be issued to POLC metaverse miners owned by PolkCity residents.
The market repurchase of POLC will raise the demand for the token.
It is crucial to remember that the income from mining relies on a number of variables, including the price of Bitcoin, the mining complexity, as well as other mining efficiency considerations. Eventually, PolkaCity indicated that user earnings would be variable. The less the value of POLC, the greater the earnings for users.
On the negative side
A $400 graphics card (NVIDIA (NASDAQ:NVDA) 3060) has a hash rate of around 150 MH/s. Users may get a hash rate of 4 TH/s using PolkaCity’s NFT miners for $400.
As per research, cryptocurrency mining in the United States generated an additional 27.4 million tonnes of carbon dioxide between mid-2021 and 2022, or three times the amount that country’s largest coal plant emitted in 2021.
In 2024, Bitcoin (BTC) is likely to be halved, therefore it will be intriguing to observe how PolkaCity handles the eventuality.
As they imitate reality, metaverse platforms are steadily gaining attention. Nevertheless, they are still in their infancy, and the industry remains very exploratory. While mining is often considered taboo, it is intriguing to watch a metaverse platform employ mining to support itself in a novel way.