A Quick Overview of Recent POW Projects: Dynex, Microvision Chain, Neurai
Since Ethereum’s shift to POS mode, the majority of public chains that have captured market attention also follow the POS model. Nevertheless, the POW model continues to develop. Typical examples include KAS, which has proposed a new POW blockchain model. Due to KAS’s consistent rise, new POW projects have gradually attracted investment and community interest. This article introduces several recent POW projects that have performed decently in the market.
I. Market Performance
Note: Data is accurate as of August 1, 2023.
The above table shows that these projects have been launched less than a year ago, have a market cap below $50 million, and have achieved good price gains in the past two months.
Additionally, the teams behind Dynex and Neurai remain anonymous, while Microvision Chain’s co-founder (Twitter: @Jason_K0001) is Chinese, with no specific experience disclosed on the official website.
II. Narratives
New POW projects each emphasize their unique narrative, in line with current market trends.
Dynex
Dynex is a neuromorphic supercomputing blockchain based on the DynexSolve chip algorithm. It employs a Proof of Useful Work (PoUW) method to enhance the speed and efficiency of decentralized networks.
DynexSolve can run “neuromorphic chips,” which outperform traditional computing methods in various tasks. Neuromorphic computing is a natural platform for many of today’s AI and machine learning applications. Dynex aims to provide computing power for AI, machine learning, fintech, biopharmaceuticals, etc.
Dynex primarily uses GPU power, and according to hiveon.com, DNX’s current hash rate accounts for 14%, making it the largest POW token within the platform’s hash rate range.
Microvision Chain
Microvision Chain aims to establish a highly scalable POW public chain as a second layer to Bitcoin, enhancing efficiency and reducing costs. The protocol focuses on three improvements: 1) Smart contracts based on UTXO accounts for application development; 2) Built-in decentralized identity protocol supporting cross-chain, with all chain data belonging to one ID; 3) To attract new users, no purchase or holding of cryptocurrency is required to use Web3 applications.
According to the official website, the core team filed a patent titled “Method and system for hierarchically cutting data in blockchain transaction, and storage medium” in November 2021. The testnet went live in May 2022 and was verified by the High-Performance Computing Center of the University of Science and Technology of China, achieving a smart contract execution speed of over 5K TPS.
Neurai
Neurai aims to be a comprehensive platform utilizing AI algorithms for data analysis, predictive modeling, decision-making, and connecting blockchain assets to IoT devices. Compared to Bitcoin and Ethereum, Neurai’s main technical parameters are as follows:
As seen, Neurai seeks to increase transactions per second, reduce transaction fees, and aims to support the implementation of smart contracts in the future.
III. Hash Power
According to Mining pool data, the hash power statistics for each project are as follows:
Note: Hash power units: H/s is the smallest unit, representing one random hash collision per second, abbreviated as H/s.
1 KH/s = 1000 H/s, 1 MH/s = 1000 KH/s, 1 GH/s = 1000 MH/s, 1 TH/s = 1000 GH/s, 1 PH/s = 1000 TH/s, 1 EH/s = 1000 PH/s.
Comparing the hash power rankings of some leading and well-known POW public chains: BTC is ranked 1st, BCH 7th, BSV 12th, KAS 29th, DASH 31st, LTC and DOGE are 38th and 39th, respectively. Microvision Chain’s ranking is relatively high.
It should be noted that according to hiveon.com, DNX’s current hash rate share reached 14%, the largest within the GPU hash rate range tracked by the platform, surpassing KAS token. The difference with Miningpool’s statistics is likely due to different statistical methods.
Below are the hash power trend graphs displayed by Miningpool:
Dynex: Overall on the rise. Recent decline due to algorithm upgrade.
Microvision Chain: Hash power is fluctuating without significant growth or decrease.
Neurai: Recent growth trend, mainly from individual miners, with a declining trend from known pools.
Overall, Dynex has an advantage in GPU hash power, with a general upward trend, though a recent decrease due to an algorithm upgrade that should gradually recover. Moreover, as KAS has shifted to using specialized mining machines, its previous GPU hash power has been redirected to DNX mining, further enhancing DNX’s hash power. Microvision Chain’s ranking is high, but highly concentrated and centralized, with fluctuating trends. Neurai has a higher degree of dispersion with many individual miners, and its hash power is on an upward trend.
IV. Economic Model
Dynex
No ICO, no pre-mining, no team reserves. Total supply of 100 million, with 64.61 million already released, representing 64% of the circulating supply. The release speed is relatively fast, with about 80% expected to circulate within two years.
The chart below displays the token release schedule and the number of tokens awarded per block over time. The reward per block is progressively reduced according to a specific formula, forming a smooth curve.
Currently, the reward for each block is approximately 173 DNX, and a block is produced approximately every 2 minutes. Based on this, the monthly emission of tokens can be calculated as around 2.67 million tokens, valued at about $2.2 million at $0.6 per token.
Microvision Chain
The token release of Microvision Chain is not entirely POW mode. It also includes reserves for the project and DAO builders, more like a combination of POW and POS modes.
According to this release rule, monthly token release for the first 1000 days is about 274,000 tokens, with an annual release of about 3.28 million tokens, and a total release of 9.86 million over three years. Three years later, the circulating percentage will reach 47%. If calculated at $12, the monthly release value is $3.28 million, and the annual release value is $39 million.
Neurai
The total number of tokens is 21,000,000,000, with a current circulating amount of 5,873,595,098, representing 28%.
If calculated at a price of 0.00081, the monthly added value is about $810,000, about 17% of the current market value.
It can be seen that the token distribution of Dynex and Neurai follows a complete POW model. 65% of Microvision Chain’s tokens are not distributed in the POW model, and the project side has significant control. Early miners hold a large amount of tokens for all three tokens. These tokens are both potential selling pressure and potential buying momentum.
V. Concerns
Among the aforementioned three projects, the most susceptible to scrutiny are the strength of their teams and the feasibility of their technology. In the Dynex and Microvision Chain communities, there are occasional expressions of FUD (Fear, Uncertainty, Doubt) towards the project teams. The main concern is that the papers published by the project teams appear to be “stitched together” from various sources, and the videos they have demonstrated do not represent new technology but merely semblances of concepts.
These three projects require significant research prowess and technical development capabilities. Dynex and Neurai are operated by anonymous teams without disclosure of member information; although Microvision Chain does have co-founders who are semi-public (such as through Twitter and interviews), they lack industry recognition and experience with other well-known projects.
Currently, many of the investors engaged in these types of projects are those who have profited from investments in KAS. There is a certain degree of overlap within the community.
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