Binance's Crypto Mining Pool Adds Ravencoin Support
Former Ethereum miners have been drawn to alternative coins like ravencoin after they had to leave the Ethereum network post-merge.
Binance Pool, the crypto exchange's mining pool service, is adding ravencoin (RVN) to its list of supported tokens as crypto miners look for new tokens to mine since the Ethereum Merge, according to a Wednesday blog post.
In September, the Ethereum network switched its algorithm from proof-of-work (PoW) to proof-of-stake (PoS), doing away with the need for computation-heavy mining in favor of a process called validating.
Ethereum miners have since had to find new ways to make money using their graphics processing units (GPU). Tokens such as ethereum classic (ETC), ravencoin and beam (BEAM) have seen a big influx of former Ethereum miners looking for a new use for their GPUs. Computing power on the Ravencoin network has grown about fivefold since before Ethereum's switch to PoS, data from Coinwarz shows.
However, as miners flock to a token, a mechanism known as mining difficulty kicks in, which makes it less likely they will win rewards. Thus, the ones with less efficient machines or high costs are eventually crowded out.
Binance Pool will be charging 1% fees for its RVN pool.
In October, Binance Pool launched a $500 million fund to lend to distressed miners amid a market downturn that has seen many of them struggle to pay off their debts.
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