FinNexus Blog

FinNexus Blog

Understanding the Basics of the New Mining Mechanism

Ryan TianJanuary 25th 2021

Basic Mining

  • Both USDC/USDT and FNX contributors in the USDC/USDT and FNX liquidity pools can participate in FNX mining, by simply staking FPT-USDC/USDT or FPT-FNX* pool share tokens in the mining contract.
  • Each user’s mining power is calculated according to her/his amount of FPT-USDC/USDT or FPT-FNX tokens staked.
  • Each FPT-USDC/USDT or FPT-FNX counts as 1 point, while a group of overlapping FPT-USDC/USDT and FPT-FNX is considered 20 points.
  • The goal of the mining system is to increase the Total Value Locked (TVL) in the FinNexus Protocol for Options (FPO), especially in the USDC/USDT pool. When calculating the overlapping FPT-USDC/USDT and FPT-FNX groups, different weights will be given to the two FPT tokens, with FPT-USDC/USDT scoring 10 times higher than FPT-FNXs.
  • The share/weight of a miner is calculated as his/her mining score divided by the total score of all miners.
  • The total basic mining reward is set to be 20,000 FNX/Day.
  • FPT-FNX is required to be locked for a minimum period of 15 days to participate in basic mining. FPT-USDC/USDT does not require to be locked.


User’s mining score = amt of FPT-USDC/USDT + amt of FPT-FNX + min(amt of FPT-USDC/USDT, 10×amt of FPT-FNX)×20
Share of a miner = one’s mining score / total score of all miners
Basic mining Amt = Total Basic Reward × Share of a miner
Total Basic Reward = 20,000 FNX/Day


  • A reward multiplier is added to the basic mining amount.
  • The longer one locks FPT-FNX, the higher the boost will be. (See table below.)
  • The minimum locking time for assets is 15 days, guaranteeing a 1x multiplier. After that, there is no lockup requirement and FPT-FNX can be transferred or removed at any time.
  • Once a choice is made, the locking period can only be increased but not decreased.
  • The reward multiplier decays as time moves forward. For example, assuming an investor locks FNX for 6 months, after 3 months, the reward multiplier decays from 6 to 5.
  • FPT-USDC/USDT does not require locking.locking period15 days3 months6 months9 months12 months15 months18 monthsreward multiplier15678910locking period21 months24 months27 months30 months33 months36 monthsreward multiplier111213141516

Total mining Amt = Basic mining Amt × reward multiplier


  • All FNX mined will be vested and linearly released in 6 months.
  • cFNX tokens will be minted and can be claimed anytime as a voucher for mining rewards.
  • cFNX tokens are transferable on the market.
  • cFNX can be transferred to FNX at a 1:1 ratio.
  • Once sent to the conversion contract, cFNX will be burnt and ⅙ FNX can be claimed monthly in 6 months.

Quick takes from FinNexus’ new mining system

  • Greatly increases mining incentives compared with the current plan.
  • Creates a joint mining pool with new mining contracts for both the USDC/USDT and FNX pool.
  • Encourages simultaneous contributions to both pools with higher mining rewards.
  • Introduces a reward multiplier according to the lockup period in the FNX pool.
  • All FNX mining incentives will be vested and linearly released in 6 months.

The New Mining Program on Wanchain

The new mining program on Wanchain will apply a similar mechanism to the one proposed for Ethereum and described above.

However, please bear in mind:

  • The WAN/FNX pool on Wanchain will be equivalent to the FNX pool on Ethereum.
  • The stablecoin pool (wanUSDT Pool) on Wanchain will be equivalent to the USDC/USDT pool on Ethereum.
  • The total basic mining reward is set to be 400 FNX/Day.

*Note: the FPT-USDC/USDT refers to the pool share token in the USDC/USDT Pool (USDT is included as additional collateral on this update), while FPT-FNX indicates the pool share token in the FNX Pool.