We at Toomim Bros Bitcoin Mining Concern are selling the first 400 H/s of our ZCash cloud mining capacity in two parallel auctions completing this Monday, Oct 10th at 5pm PDT. Contracts will begin on Oct 28th, and last for 3 months, backed by the Toominer GPU mining software. The auctions will be uniform price multiple unit auction. One will accept only public bids, and the other only private bids. Both will be for 200 H/s. We will offer more batches later. We currently have 5,000 H/s available which we will sell before Genesis day. We will be adding more capacity as fast as we can.
This thread is to discuss the rules and format of the auctions. The auctions themselves will be conducted in separate forum threads. We will open the first auction thread within 24 hours.
Bidders will name the price they are willing to pay and the quantity of hashrate they are willing to pay at that price. Bidders can place multiple bids. At the end of the auction, we will aggregate the bids into one list, sort them by price, and fill them in order from highest to lowest bid until we have filled the 200 H/s. Bids must be fully paid (either to us or into escrow) to be valid. Losing bids will have their funds fully returned.
For the public auction only, bidders will not pay their bid price, but rather the price set by the lowest winning bid in the auction. The difference between their bid and this lowest bid will be refunded. Rational behavior is thus to bid the most you are willing to pay.
Example - Auctioning a total of 200 H/s for 3 months
Bid #1 - 2.0 BTC - 100 H/s <-- Bidder Refunded 0.5 BTC
Bid #2 - 1.5 BTC - 100 H/s <-- Winning Bid -- All 200 H/s auctioned for a total of 3 BTC.
Bid #3 - 1.3 BTC - 100 H/s <-- Losing Bid
Bid #4 - 1.0 BTC - 100 H/s <-- Losing Bid
For the private auction, winners will pay the actual amount bid, as there is no way we can prove what the lowest winning bid was.
Accounts and payment methods
Bidders will first create an account with Toomim Bros. We will assign a Bitcoin payment address to each customer. We will use the address listed on http://toom.im/faq, 1CjUsGn5iQ7eRRjYfryQ2EPoE2z5oNvVT4, to sign messages for each payment address assignment. This proves that Toomim Bros controls the address you were given, and that you are not being scammed by a phisher.
Bidders who wish to use third-party escrow may do so with OgNasty. The minimum size for escrow bids is $1000. Alternate escrow agents will be considered for large bids. At the bidder's choice, the funds can either be held in escrow until the auction closes, or they can be held in escrow until the first 7 days of the hashing contract has been fulfilled. If the funds are released upon auction close, OgNasty will get a 1% fee and Toomim Bros will not charge an additional fee. If the funds are released upon 10% completion of the contract, OgNasty will get a 1.5% fee and Toomim Bros will charge an additional 5% fee. Using escrow is a lot more work, and makes it harder for us to use our revenue to buy more GPUs, so we disincentivize it.
Payment will be accepted in BTC or in ETH. All bids will be officially denominated in BTC. When exchange rates are required, conversions will be made at the time the auction closes, using the rates listed on Poloniex at that time. Failed bids will be refunded in full in their original currency.
To create an account, please send an email to firstname.lastname@example.org with the following information:
- Your preferred Toomim Bros account username.
- Your forum username (if you have one).
- A return bitcoin (or ethereum) address. It is strongly recommended that you be able to sign messages with this address.
- An email address. We will need this in order to get your pool information before activation. (PGP is nice if you have it. Our PGP keys are here.)
- Whether you will be using OgNasty's escrow service.
- Whether you expect to bid mostly privately or publicly. (You can switch later, but it helps us to know early.)
- Optional: Phone number for 2FA.
- Optional: Skype/Facetime/iChat for 2FA or answering questions.
Accounts created less than 4 hours before an auction's close time will not be permitted to bid until the next auction.
(Note: escrow instructions via OgNasty are still being written.) Bidders using OgNasty still need to register their account with Toomim Bros as above before bidding. Bidders utilizing OgNasty (from bitcointalk) for escrow should send their bids to 1Zcash1bw9DNTbDkqaB67uYme44eEmtp6. After sending a bid to this escrow address, bidders should post the transaction ID as well as an address the funds should be returned to in the event the bid is not accepted. Bids that are not accepted will be returned to the sending address if no return address is listed.
Our hashrate will be delivered to a pool of your choice via the ZCash stratum protocol. As the pool ecosystem is not yet mature, we will collect pool information from you in the weeks or days before the October 28th ZCash launch. Pool changes will also be permitted after launch. We might also be able to assist you in solo mining, but we legally cannot be a pool. Toomim Bros will never handle your mining revenue. We are not a money services business or a money transmitter, merely a purveyor of computation.
Nope. After the auction is complete, we will not do refunds unless we have difficulty fulfilling the hashpower contract. Bid with that in mind.
Exception: If the community is able to crowdfund a purchase of our mining software as open source, we will refund all cloud hashing customers (pro-rated, if after the start of the contract) and start the auctions over. If we sell the software privately to another entity, we will offer our customers a choice of a full refund.
We will be appearing on BlockTalk w/ Alex Sterk https://www.youtube.com/c/blocktalk with hosts @Sterky @NotSoFastCrypto @CollinCrypto Tuesday October 11th at TBD time to talk about our offering, plans and answer general questions. Please feel free to post questions on this thread you'd like us to address on the show, just add #blocktalk to your post.
For our next auction, how long should the contract duration be?
- < 1 month
- 1 month
- 3 months
- 6 months
- 12 months
Choose up to 6 options