Bitpanda Asset Management GmbH, Bitpanda GmbH

9845005X9B7N610K0093, 5493007WZ7IFULIL8G21

Mina

Mina is present on the following networks: Ethereum, Mina. The crypto-asset's Proof-of-Stake (PoS) consensus mechanism, introduced with The Merge in 2022, replaces mining with validator staking. Validators must stake at least 32 ETH every block a validator is randomly chosen to propose the next block. Once proposed the other validators verify the blocks integrity. The network operates on a slot and epoch system, where a new block is proposed every 12 seconds, and finalization occurs after two epochs (~12.8 minutes) using Casper-FFG. The Beacon Chain coordinates validators, while the fork-choice rule (LMD-GHOST) ensures the chain follows the heaviest accumulated validator votes. Validators earn rewards for proposing and verifying blocks, but face slashing for malicious behavior or inactivity. PoS aims to improve energy efficiency, security, and scalability, with future upgrades like Proto-Danksharding enhancing transaction efficiency. Mina operates on a unique Proof-of-Stake (PoS) consensus protocol called Ouroboros Samasika, which is adapted to work with Mina’s succinct blockchain structure. This innovative approach enables Mina to maintain a lightweight and efficient blockchain while ensuring security and decentralization. Core Components of Mina’s Consensus: 1. Ouroboros Samasika PoS Protocol: Adaptation of Cardano’s Ouroboros: Mina’s PoS mechanism, Ouroboros Samasika, is a modified version of Cardano's Ouroboros PoS. It has been specifically optimized for Mina's succinct blockchain model, which requires minimal data storage for validating the entire chain. 2. Succinct Blockchain (Constant Size): 22 KB Fixed Size: Unlike traditional blockchains, Mina maintains a minimal, fixed-size blockchain of around 22 KB. It achieves this through the use of recursive zero-knowledge proofs (zk-SNARKs), which compress the entire blockchain into a single, verifiable proof that any node can validate. Efficient Verification: This succinct structure allows Mina to operate efficiently without requiring nodes to store vast amounts of historical data. Instead, each node validates the chain by verifying a concise zk-SNARK proof, maintaining security and scalability. 3. Leader Election with Verifiable Random Function (VRF): Randomized Validator Selection: Mina’s leader election process is conducted through a Verifiable Random Function (VRF), which randomly selects validators to produce blocks based on their stake. This randomization enhances security, prevents manipulation, and ensures a decentralized network. 4. Fork Resolution: Longest-Chain Rule: Mina employs a longest-chain rule with Ouroboros Samasika. The chain with the most accumulated proof-of-stake work is considered the valid chain. However, due to zk-SNARKs, Mina reduces the chain data required to verify the blockchain, making fork resolution more efficient.

Mina is present on the following networks: Ethereum, Mina. The crypto-asset's PoS system secures transactions through validator incentives and economic penalties. Validators stake at least 32 ETH and earn rewards for proposing blocks, attesting to valid ones, and participating in sync committees. Rewards are paid in newly issued ETH and transaction fees. Under EIP-1559, transaction fees consist of a base fee, which is burned to reduce supply, and an optional priority fee (tip) paid to validators. Validators face slashing if they act maliciously and incur penalties for inactivity. This system aims to increase security by aligning incentives while making the crypto-asset's fee structure more predictable and deflationary during high network activity. Mina incentivizes participants through block rewards, transaction fees, and a unique role called Snarkers to support network security, stability, and the succinct blockchain model. Incentive Mechanisms: 1. Block Rewards for Validators (Block Producers): Incentivizing Security and Block Production: Validators, known as block producers, earn block rewards for successfully producing blocks. These rewards provide an incentive for users to stake their tokens and contribute to network security and block production. Inflationary Model: Mina has an inflationary token supply, where new tokens are minted as block rewards. This inflation rate is designed to decrease over time to reach a stable token supply, balancing incentives with long-term sustainability. 2. Transaction Fees: Ongoing Rewards: Validators also earn transaction fees from the transactions included in each block, providing a continuous reward mechanism that grows as network usage increases. Dynamic Fees During Congestion: Although Mina’s transaction fees are generally flat, they can increase during times of high network demand. Validators can set higher fees to prioritize transactions, ensuring efficient block production during peak periods. 3. Incentives for Snarkers (Proof Generators): Role of Snarkers: Mina introduces Snarkers (or Snark Workers), a unique role in the network responsible for generating zk-SNARKs to verify the blockchain’s state. These zk-SNARK proofs are essential for maintaining Mina’s succinct structure. Compensation by Block Producers: Block producers pay Snarkers for their zk-SNARK proofs, creating a decentralized market for proof generation. This setup incentivizes individuals to produce these essential proofs, decentralizing the proof-generation process and supporting network functionality. Applicable Fees: Flat Transaction Fees with Dynamic Adjustments: Mina’s transaction fees are typically flat, making the network accessible and predictable for users. However, during periods of network congestion, validators may set higher fees to prioritize transactions with higher fees, ensuring that critical transactions can be processed quickly.

2024-10-12

2025-10-12

92768.40000 (kWh/a)