TonMiner Protocol

# Overview

TonMiner - High-Yield DeFi Protocol on TON

Dynamic Mining System with Returns up to 8% Daily

TonMiner is an economic model on the TON blockchain based on reinvestment mechanics and mining optimization. The well-designed reward system and balance between fund withdrawal and reinvestment allow achieving returns up to 8% daily

⚡MINER - The Core Element of the System

The central element of TonMiner is the MINER, which mines TON coins. The key feature of the system is the ability to improve your MINER through the Upgrade operation:

✓ With each upgrade, your miner's level increases
✓ Higher levels directly increase profitability and operating time
✓ Each action (withdrawal or upgrade) has a 3-hour cooldown period
✓ Strategic upgrade management is the key to maximizing your income

🔒Maximum Security of Your Funds

• Audited smart contract: Our smart contract has undergone thorough security audits by independent experts, confirming its reliability and safety for all users
• Full control over your assets: We have no access to your funds - all operations are performed directly through the verified smart contract
• Transparent mechanism: All transactions are completely open and available for verification

# ⛏️ Mining Algorithm

Mining Basics

Users deposit TON into our Dapp to purchase mining power. The obtained power determines the speed of TON mining: the higher the power, the more cryptocurrency your miner produces.

⏱️

Operating Time Mechanics

Miner work continuously, but with an important limitation: operating time depends on the miner's level, which is determined by the number of upgrades performed:

1 Level 1 : base time = 24 hours

2 Level 2 (5-14 upgrades): +24 hours

3 Level 3 (15-29 upgrades): +48 hours

4 Level 4 (30-49 upgrades): +72 hours

5 Level 5 (50+ upgrades): +96 hours

⭐ 70+ upgrades: +120 hours (max)

Important: The operating time is counted from your last action (withdrawal or upgrade). If you regularly perform upgrade/withdraw actions before your miner's operating time expires, your miner will work continuously without interruption.

🔄

Usage Options

You have two options for using the mined TON:

Upgrade (Compound)

Reinvest the mined TON to increase your mining power

Withdraw

Receive the mined TON to your wallet

Strategic management of the upgrade process and choosing the optimal moment to withdraw funds are key factors for your success in the system.

🧮

Income Algorithm

Formula:

Miner power = deposit / (deposit + contract balance) * Market

The market is a dynamic value that changes with each transaction in the system. It ensures a balance between new investments and payouts, making the project's economy sustainable in the long term.

📊

Dynamic Profitability

Profitability dynamically changes depending on three key factors:

Your deposit amount

Current contract balance

Market conditions

# 🛡️ Miner Health System

Contract Protection and Fair Profit Distribution

📈The Stability Problem of Mining Protocols

One of the main issues with most mining projects is the ability of early investors and "whales" (users with large investments) to take a disproportionate share of profits, leading to contract destabilization and reduced profitability for new participants.

💡Innovative Solution: Miner Health System

A unique solution to this problem is the miner health system, which in combination with other measures ensures long-term project sustainability and fair profit distribution among all participants.

Based on deep analysis and study of similar projects' experience, optimal threshold values and miner health management mechanisms have been carefully determined.

Technical note: Under the hood in the smart contract, each purchase of mining power actually represents a separate "deposit" with its own health level and efficiency. This allows the system to track and manage the state of each group of mining power independently.

⚙️How It Works:

•
Initial state: Each deposit is created with full health (level 2)
•
Sequential reduction: When withdrawing funds, the smart contract automatically processes mining power in the order it was acquired:
- → First reduction: When withdrawing more than 300% of the mining power cost, health decreases to level 1, and power is reduced by 80%
- → Second reduction: When withdrawing more than 600% of the initial cost, health drops to level 0, and power is further reduced by 50%
•
Multi-deposit system: After reducing the health of the first group of mining power, users can purchase new mining power based on current market conditions to maintain high overall performance. It's essential to note that each new purchase takes into account the current market state at the time of acquisition, ensuring fair conditions for all participants.
•
Deposit limitation: There is a 10% TVL (Total Value Locked) limit for each deposit. This means that no single deposit can exceed 10% of the total contract balance, preventing excessive concentration of power in the hands of large investors.

Important: Mining power never drops to zero. Even after both health reductions, mining power continues to generate income, albeit at a significantly lower rate. This solution allows investors to retain a portion of their profits even from "aged" mining power.

✅System Benefits:

✓
Natural limitation for whales: Even large investors cannot indefinitely withdraw profits from a single mining power purchase
✓
Fair distribution: Ensures more equitable profit distribution among all participants
✓
Long-term sustainability: Significantly extends the project's lifespan, protecting it from rapid depletion

🔄Withdrawal Penalty System

To ensure the long-term stability of the contract, a penalty system is applied when withdrawing funds, which affects the user's mining power:

Penalty Calculation Mechanism:

7-15%

15-35%

35-70%

70-95%

150%

300%

450%

600%

•
Up to 150% withdrawal from deposit: penalty from 7% to 15%
•
From 150% to 300% withdrawal: penalty from 15% to 35%
•
From 300% to 450% withdrawal: penalty from 35% to 70%
•
From 450% to 600% withdrawal: penalty from 70% to 95%
•
Over 600% withdrawal: fixed penalty 95%

Tip: If you have suffered a significant loss of mining power, make a repeat deposit. Mining power from the repeat deposit will not be withdrawn until the health of the previous deposit reaches 0

When calculating the penalty, the amount of mining power that could be bought for the withdrawn amount is taken into account, and this equivalent is reduced by the penalty percentage. The more the user withdraws relative to their deposit, the higher the penalty percentage.

Penalty Calculation Example:

If you deposited 100 TON, withdrew 340 TON and want to withdraw another 58 TON:

Total withdrawal: 398 TON (398% of the deposit)
Withdrawal falls in the range 300-450% of deposit
According to the scale above, this range has a penalty of 35-70%
Since 398% is approximately in the middle of the range (398 is 65% of the way from 300 to 450), the penalty is calculated as ~52.5%, which we round to ~50% for simplicity
If 58 TON can buy 290 mining power, the penalty will be 145 mining power

Important: The penalty system works in addition to the miner health system, ensuring fair profit distribution and preventing excessive depletion of contract resources.

# 🛡️ Efficiency Reduction of Older Deposits

To ensure fair profit distribution among participants and protect the protocol from excessive withdrawals, TonMiner implements a mechanism that gradually reduces the efficiency of older deposits:

•
After you withdraw more than 300% of your deposit amount, a portion of the miners from that deposit is removed, reducing its mining power by approximately 80%.
•
After reaching 600% withdrawal, the deposit is fully removed, and the remaining mining power is automatically transferred to your next deposit, if any.

💡

Important Note

This reduction applies only to the currently active deposit from which the withdrawal is made. Other deposits remain unaffected.

This mechanism encourages reinvestment and helps maintain long-term sustainability of the system.

# 🔄 Withdrawal Penalty System

To ensure the long-term stability of the contract, a penalty system is applied when withdrawing funds, which affects the user's mining power:

Penalty Calculation Mechanism:

7-15%

15-35%

35-70%

70-95%

150%

300%

450%

600%

•
Up to 150% withdrawal from deposit: penalty from 7% to 15%
•
From 150% to 300% withdrawal: penalty from 15% to 35%
•
From 300% to 450% withdrawal: penalty from 35% to 70%
•
From 450% to 600% withdrawal: penalty from 70% to 95%
•
Over 600% withdrawal: fixed penalty 95%

Tip: If you have suffered a significant loss of mining power, make a repeat deposit. Mining power from the repeat deposit will not be withdrawn until the health of the previous deposit reaches 0

Penalty Calculation Example:

If you deposited 100 TON, withdrew 340 TON and want to withdraw another 58 TON:

Total withdrawal: 398 TON (398% of the deposit)
Withdrawal falls in the range 300-450% of deposit
According to the scale above, this range has a penalty of 35-70%
Since 398% is approximately in the middle of the range (398 is 65% of the way from 300 to 450), the penalty is calculated as ~52.5%, which we round to ~50% for simplicity
If 58 TON can buy 290 mining power, the penalty will be 145 mining power

Important: The penalty system works in addition to the efficiency reduction system, ensuring fair profit distribution and preventing excessive depletion of contract resources.

# 👥 Referral System

💎Unique Opportunity for Community Owners

TonMiner offers an exceptional opportunity for owners of Telegram channels, groups, and other communities to monetize their audience. Our generous three-level referral system allows you to not only receive rewards for direct referrals but also create passive income from their activity and further distribution. This is an ideal solution for influencers who want to offer real value to their audience while generating a stable stream of income.

🌟How It Works

Our referral system is designed to maximize rewards for bringing new users and creating a sustainable network of investors:

Referral Rewards:

✓
15% of every deposit made by your referrals
✓
5% of every Upgrade (compound) made by your referrals

Distribution of Referral Rewards: The total referral reward (15% from deposit or 5% from upgrade) is distributed among three levels of referrers in the following proportions:

75%

First Level

Direct referrals

20%

Second Level

Referrals of your referrals

Third Level

Referrals of your second level referrals

Important: If a user doesn't have second or third level referrers, the entire reward is distributed to the existing referrer(s). For example, if only the first level referrer exists, they will receive 100% of the referral reward!

📊Reward Distribution Example

Let's say a new user invests 1000 TON:

Total referral reward: 150 TON (15% of the investment)

Level 1 referrer: 112.5 TON (75% of 150 TON)

Level 2 referrer: 30 TON (20% of 150 TON)

Level 3 referrer: 7.5 TON (5% of 150 TON)

⚡Important Mechanics

The referral system is built with several key features to ensure fairness and efficiency:

•
First referrer is permanent - each player can only have one referrer
•
Referral rewards accumulate in your balance until claimed
•
No minimum threshold for claiming rewards
•
No expiration date on accumulated rewards

It's essential to emphasize that the referral system is designed to reward active participation and community building, rather than just attracting new users.