Protocol
Reward Distribution
How BTC rewards are distributed to mining share holders
Overview
When the m1n3 pool finds a Bitcoin block, the coinbase reward (currently 3.125 BTC) needs to be distributed to share holders. m1n3 uses MPC (Multi-Party Computation) technology for trustless, non-custodial Bitcoin distribution.
How It Works
- Block found — the pool mines a valid Bitcoin block
- Coinbase maturation — the reward is locked for 100 blocks (~16.5 hours) per Bitcoin consensus rules
- Reward calculation — each share's contribution is calculated based on its difficulty relative to the total work in that round
- MPC signing — the MPC network signs Bitcoin transactions distributing rewards to share holders
- Distribution — BTC is sent directly to share holders' Bitcoin addresses
Share Holder Options
After a block is found, share holders have two paths:
Hold & Redeem
Wait for the coinbase to mature and claim your BTC reward. This path has zero fees — you keep the full value of your share.
Sell on Marketplace
Sell your share immediately on the m1n3 marketplace. This gives you instant liquidity but at a discount (since the buyer must wait for maturation). A 2% marketplace fee applies, distributed to M1N3 stakers.
MPC Technology
The reward distribution system uses dWallet/IKA MPC technology:
- Non-custodial — no single party controls the BTC
- Trustless — signing is enforced by the smart contract
- Decentralized — multiple parties must cooperate to sign transactions
- Automatic — reward distribution happens without manual intervention