Here is a quick synopsis of recent activity.
Weekly, Mark, Dave & Adam continue to work in the cave cleaning and maintaining equipment, optimizing and ensuring that we are hashing at maximum efficiency. We continue to hash at ~55K, which translates into ~130 ETH/month. Ethereum difficulty has trended down lately, which is a positive development for us, however not one that we can count on longer term. If you have not, please bookmark this address if you want to monitor production activity.
We made a distribution last Saturday (11-3-18). Please check your wallet to ensure that you received it. All transactions are stored on Etherscan. We plan to continue making bi-weekly distributions.
Devcon 4 Highlights:
Devcon 4 recently wrapped up (10/31-11/2) in Prague. This is a conference focused on Ethereum development. Quite a bit of enthusiasm surrounded the conference and it appears that a lot of progress is being made with Ethereum. 2019 should see quite a few immediate updates including improvements to “Vyper,” the new Ethereum smart contract programming language. As well as “Ethermint” a platform for scaling, or improving the capabilities, of dApps, and an iOS development kit for building Apple compatible smart contract deployments.
Vitalik Buterin continues to note that a complete roll out of Ethereum 2.0, for which the main goal is usability and widespread mainstream adoption is “not so far away”; however to date there are not specific dates or a timeline given for such major parts of 2.0 like the switch from Proof of Work to Proof of Stake.
About Ethereum 2.0, Buterin stated, “a combination of a bunch of different features that we’ve been talking about for several years, researching for several years, actively building for several years that are finally about to come together in one cohesive whole,”.
The September Financials are attached. Two areas of note are the absence of revenue and the payment of a management fee. We do not realize revenue until we either convert Ethereum to dollars or make distributions, which happened in the first week of November; therefore, no revenue is shown in September or October even though we were mining during that time. The management fee was a one-time amount determined unanimously by the managers to pay a discounted amount of accrued start-up and build out costs. Mark, who was originally contemplated to be employed full-time by the fund throughout the life of the fund and was the primary benefactor of the originally contemplated monthly management fee, continues to be active in working at the cave and on Ensource/Blockchain initiatives; however there will be no more ongoing monthly management fees.
The October 2018 financial statements are expected to be ready next week.
We have done a significant amount of research, traveling and due diligence regarding the use of the Antminers. This includes site visits to offsite hosting facilities, number-crunching on opportunistically mining in the cave now that temperatures have declined and liquidating on eBay. We have determined that we are going to liquidate the Antminers for the best prices that we can get and as quickly as possible. BTC difficulty has continued to rise despite stable BTC price and Bitmain has recently announced the pending release of new hardware that will put pressure on the obsolescence of our equipment. So, although this is not strategically a different path forward than what we have mentioned previously concerning the Antminers, we have decided that the timeline for liquidating this equipment must move more quickly.
Thank you for your time in reading this update. Please let us know if you have any questions.
– Ensource Team