One of the most-cited arguments against Bitcoin (Crypto: BTC) is the fact that maintaining its blockchain is too resource-intensive. The total power consumption of the computer hardware maintaining the BTC network exceeds that of many smaller nations. If the network continues to expand, it could even take up a noticeable chunk of the total global power supply. In the long run, if nothing is done, this could significantly impact our carbon footprint.
However, for Foleum, a fledgling blockchain-based cryptocurrency mining project, this is an opportunity rather than a roadblock. Unlike other mining companies that set up equipment in locations with a large supply of cheap power, Foleum’s core philosophy is to source most of its own energy from renewables. This allows its to not only eliminate most of the expenses related to running a mining farm, but to also negate the impact on the environment.
A lot of these savings will naturally come from using its own hybrid solar and wind installations to provide renewable energy rather than sourcing it from other companies, which generally operate inefficient fossil fuel-powered plants. Rather than having to cover those companies’ expenses and profit margins, the team will only need to worry about maintenance and upkeep costs of its own installations.
Saving Energy, while Staying Cool
Renewable energy usage won’t be the only path to reduced costs, though. Using high-efficiency geothermal cooling systems, an estimated 50 percent reduction in power usage can be achieved for heat dissipation alone. As a bonus, these systems will also keep the mining hardware a lot cooler, greatly reducing or eliminating temperature-related wear and tear. Of course, the custom GPU/ASIC hardware to be installed in the data center will also contribute to energy savings. On top of that, there are plans to install indoor wind turbines to recapture some spare energy from air movement within the building, leading to additional savings.
Combined, the savings in power will greatly reduce the amount of renewable energy equipment needed for operation, further reducing the monetary and environmental costs of Foleum’s blockchain mining operation.
These technologies could slash operating expenses by nearly 75 percent (according to Foleum’s estimates, which assume a price of $0.12/KWh).
The Foleum Token
The Foleum Crystal (FOL) is the ERC-20 security token that is being distributed through Foleum’s ICO (Initial Crystal Offering).
One of the primary functions of the token will be profit sharing from the mining operation. Up to 60 percent of the total coins mined will be distributed to crystal holders, though this won’t happen right away. Once the project is operational, Foleum will release a wallet for its token and update its website. This will allow any holder to register his or her tokens, locking them out of circulation, and claim the profits. Users won’t immediately get the full 60 percent cut of the profits, as that will require a full year of continuous staking (meaning not moving the tokens anywhere for at least a year). The initial cut starts at 10 percent, ramps up to 50 percent over half a year, and then bumps to the full 60 percent after a full year.
Aside from this primary profit distribution function, each token also represents a vote in company matters, like regular shares. Not all decisions will be made through a vote, but the community will be essential for making decisions related to mining, as that will have a direct impact on the profits that token holders may or may not receive. In this way, the community will be a key part of Foleum’s business model.
Due to its nature as a bona fide security token, the Foleum Crystal ICO is currently only available to accredited investors inside the U.S., as well as non-U.S. purchasers. However, Foleum is working hard on getting regulatory approval for a Regulation A+ Mini-IPO of its tokens, which would allow anyone inside the U.S. to invest in the project, as well.
This is quite notable, as there are very few blockchain projects and companies that are willing to accept U.S. investors. Even then, just a small fraction of those projects accepts anyone from inside the U.S. aside from accredited investors. Foleum, on the other hand, has made it clear that it plans on being fully compliant while being very accessible to anyone who wants a vested interest.
The funds raised through said ICO will be used primarily to finance the construction of the data center, and to purchase the renewable energy-generation hardware. Given that the primary benefit to investors is daily payouts proportional to their holdings, the data center is a focal point in Foleum’s early growth. The project aims to reward the early investors by setting up the mining farms that will generate the said payouts. This will also help to stabilize the price of the token itself, as claiming the full profit requires investors to hold on to their tokens rather than trade them.
There are plans, though, to expand into hardware sales. The custom hardware initially sourced for the mining data center will be integrated into DIY mining kits, pre-built home miners and even pre-made mining servers that will be available for purchase separately. Of course, any FOL token holders will be eligible for a special discount on any such hardware purchases. Additionally, as the data center is periodically upgraded, any used hardware will be sold off through the company website to partially recover costs and further increase profit margins.
Overall, the Foleum team seems to have a well-developed, long-term vision for its company. Aside from operating the data center and doing hardware sales, the team is planning to conduct regular token buybacks and burns to actively take more FOL out of circulation. All of these strategies are designed to enable Foleum’s growth well into the future, long after the initial buzz around the ICO dies down and the company begins regular operation. Additionally, it could become an example of how to run an environmentally-friendly, community-based project.
For more information, visit www.Foleum.io
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