Magi (symbol XMG) is a Pow/PoS coin without premine, based on the M7M algorithm. That algorithm is an improvement of the prior work done by XCN, the M7 algorithm. XCN has done well on choosing cryptographically secure hashing functions; M7 hashes the multiplication of seven hashes by using SHA-256.
For some time, M7 was only minable through CPU. Unfortunately, as of this time both Nvidia and AMD miners have been implemented, that makes M7 like any other algorithm. Under this scheme, the Magi team has carried out modifications to the M7 algo. The basic idea is that GPU does bad work on manipulating complicated mathematical functions compared to CPU. The resultant algorithm significantly increases the difficulty of implementing GPU miners. This idea and its implementation could be very promising for future use in CPU coins. The native characteristics of the algorithm resists to GPU mining and hence ASIC mining, too. The additional advantage is that the algorithm is not memory hard which means not a lot of energy consumption during mining processes.
Following the success of the 1st Magi Proof of Mining Campaign, Magi team, some days ago, announced a 2nd Proof of Mining Campaign (PoM). PoM means, by it’s definition, the more mining efforts being placed, the more rewards one gets. This is typically right in mining any coins, while it’s particularly emphasized in Magi (on individuals’ participation), because of the design of PoW block reward. A simple description of the block reward is that it decreases with increasing network hashrate, and may hit zero when network hash is significantly high. A consequence of this is big miners get frustrated. If one is familiar with the block reward, you will see block reward could be easily hitting zero. A point here, which was also being argued among people, is who will exit if mining nothing? This is where PoM campaign will be functioning. The campaign will encourage people to keep mining by rewarding despite the amount of block reward. To understand the purpose of the PoM campaign , we can see what happens if we’re on the opposite situation – what if generic miners quit first? Big miners keep mining, because of miners quitting, network hash getting low, block reward increasing, and big miners get rewarded more! So now you see PoM campaign is trying to protect the network and to ensure FAIR coin distribution.
To the individuals, PoM means one will receive better rewarding by long term mining. Provided that the generic miners form a solid league and they won’t give up mining in any situation, one will receive less mining share if big miners are present since they have more hash weight over the rest of miners. It should be noted, however, that coin distribution is pretty much protected by the significantly reduced block reward, as much less coins will be mined in this case. At the time of big miners’ leaving, network hash decreasing, not only one gets higher mining share, but also the block reward is high. Then you know why Magi can achieve the FAIRness in coin distribution. The max hashrate allowed to individual miner is the dedicated PoM pool is set at 250 kh/s. At the time of this article being written, the Magi team is developing an android miner, so that another class of small miners can join and bring in even much more decentralized mining.
The 2nd Magi Proof of Mining Campaign already achieved a huge success, with about 200 active miners working in the dedicated mining pool. You can find all details of the campaign in the dedicated thread.