How It Works
End-to-end flow of the m1n3 protocol
Overview
m1n3 is a decentralized Bitcoin mining protocol built on the Sui blockchain with four distinct roles:
- Node Running — run a Bitcoin full node and register blocks on-chain to mint M1N3 tokens
- Token — M1N3 is the native incentive token, used for staking on block templates
- Mining & Templates — miners perform SHA-256 PoW and submit shares to Sui for trustless verification
- Share Trading — mining shares are tradeable on-chain assets, redeemable for BTC rewards
Node Runners
Bitcoin full nodes are critical to the network's decentralization, yet they have no built-in financial incentive. m1n3 solves this: node runners register blocks on-chain and earn M1N3 tokens — the only way tokens are minted.
- Run a Bitcoin full node
- Register blocks on-chain via Sui
- Earn M1N3 tokens for each registered block
- Strengthen Bitcoin's decentralization
M1N3 Token
The M1N3 token is minted exclusively through node running — when node runners register blocks on-chain.
- Minting: Only through block registration by node runners — no pre-mine, no other minting path
- Utility: Stake on block templates to signal confidence and earn a share of the 2% share-trading tax
- Tradeable: Instantly liquid on-chain — no waiting for a Bitcoin block to be found
Block Templates & Mining
1. Template Creation
Miners build their own block template from their local Bitcoin full node — choosing which transactions to include — or fetch a template already registered on-chain by another node runner.
2. On-Chain Template Visibility
Each template registered on Sui is publicly visible and shows: total work dedicated, number of unique miners, and total M1N3 staked — giving miners full transparency before they choose where to direct hashpower.
3. Mining & Share Submission
Miners perform SHA-256 double-hash Proof of Work against their chosen template. When a valid share meeting the pool difficulty target is found, it is submitted as a transaction to the Sui blockchain.
4. On-Chain Verification
Sui's native SHA-256 function verifies the double-hash and validates that the share meets the required difficulty target. No off-chain trust is required — verification is fully trustless.
Mining Shares
Mining shares in m1n3 are not just Proof of Work receipts — they are fully tradeable on-chain assets that unlock a futures market for hashrate.
- Tradeable: Buy and sell shares on the open market
- Redeemable: Redeem shares for BTC rewards when blocks are found
- Speculation & Hedging: Enables a futures market — speculate on hashrate or hedge mining output
- 2% Transfer Tax: A 2% tax on share trades is distributed to all M1N3 stakers
- Zero Cost for Holders: Miners who hold and redeem their own shares pay nothing
Why m1n3
Dynamic Hashrate Tokenization
Legacy hashrate tokenization projects use fixed-rate tokens that get diluted as global hashpower increases. m1n3 shares represent actual work performed at actual network difficulty — a direct, undiluted claim on mining output.
Exchange-Grade Liquidity
Miners traditionally lack an immediate exit for their hashrate. m1n3 creates a secondary market: sell shares for immediate cash, or trade and hedge your mining output — all on-chain with instant settlement.
Zero Pool Fees
0% pool fee vs the industry standard 2%. The only fee in the ecosystem is a 2% tax on share trading, distributed entirely to M1N3 stakers. Mine and redeem = keep everything.