Solana-based proof-of-work (PoW) project Ore has suspended its mining activities effective immediately due to issues such as network congestion and instability.
Ore's market value has staggeringly more than tripled since the announcement of the suspension of activities.
Ore’s anonymous founder, Hardhat Chad, announced the decision on social media, explaining that the mining pause was to address critical flaws and prepare for a more efficient version of the Ore contract, known as version 2 (v2).
The new version promises to improve upon the original design to correct inefficiencies and introduce incentives for miners to hold tokens.
Ore, which uses a PoW distribution mechanism similar to Bitcoin, has quickly become the most active program on Solana and a major factor in the network’s recent congestion issues. This popularity has led to unprecedented network traffic and exposed multiple vulnerabilities in the network infrastructure.
Since its launch, Ore’s price has surged from around $93 to a peak of over $300 before settling at around $215.
The decision to suspend Ore mining is part of the project's adjustment of its token distribution strategy. While PoW is secure and proven, it is known for its high energy consumption and slow transaction times, which is in stark contrast to Solana's low-cost, high-throughput model.
By combining PoW with Solana’s existing Proof of History and Proof of Stake mechanisms, Ore aims to create a fair and engaging distribution method.
With the upcoming launch of Ore’s v2 version, all existing tokens will be upgraded in a one-to-one manner and ensure fairness for current stakeholders. The Ore team is focused on implementing changes to address previous inefficiencies, optimize the system, and better align with Solana’s ongoing network enhancements.
With the upcoming launch of the second version of the Ore project, existing tokens will be able to upgrade one-to-one, ensuring fairness to the interests of existing holders. The Ore team is committed to making necessary improvements aimed at solving previous efficiency issues, improving system performance, and aligning with the ongoing technical upgrade work of the Solana network.
Solana’s community and investors are watching these developments closely, expecting the upcoming changes to stabilize and improve network performance. In the meantime, the suspension of mining activity is an important moment of reflection and recalibration for this highly-watched project in the cryptocurrency space. #Solana #Orev2