Ethereum’s existing dependence on Proof of Work (PoW) mining is less than optimal, and although we continue to strive earnestly towards a Proof of Stake solution (PoS), we must manage PoW as gracefully as we can (at least until the eventual transition!). In the meantime, promoting overall network health necessitates mining decentralization and diversity as a clear priority:
Mining Pool Diversity from March 28 via https://etherchain.org/statistics/miners
Although there exist some examples of available open-source Ethereum pool mining software, the adoption has been minimal, and there seems to be a considerable efficiency disparity between proprietary solutions and available open-source options.
We aim to rectify this.
As of now, the Ethereum Foundation is presenting a reward to a developer or a team interested in initiating this project, contingent on the “performance” of the final product:
100 ETH for each % hashpower that implements the software, limited to a maximum of 8% per independently operated pool or 33% total, whichever is lower. (e.g., pools A,B,C with 6% each -> 1800 ETH, pool A with 25% + pool B with 5% -> 1300 ETH, pools A,B,C,D,E with 7% each -> 3300 ETH)
To facilitate development in the interim, DEVgrants will contribute an extra $10,000 grant once the project is in motion.
We are receptive to various strategies, provided that the end product delivers an easily configurable mining pool under an open-source license that yields comparable returns to existing Ethereum mining pools (such as dwarfpool, ethermine, etc). The bounty will be granted to the initiative that we find the most compelling and feasible.
For those applicants willing to engage in open public discourse, please submit a 1-2 paragraph proposal in this reddit thread. Vitalik and others will examine the proposal and discuss its merits in a public forum. If you prefer to submit your proposal privately, you may email grants@ethereum.org. Please be aware, however, that your project will be disclosed publicly (and inevitably debated extensively) in due time.
We invite everyone to collaborate in addressing this challenge, viewing it as another opportunity for the remarkable Ethereum community to rise to the occasion!
