DEMAND Launches First Stratum V2 Bitcoin Mining Pool, Decentralizing Industry

DEMAND, a pioneering force in the Bitcoin mining industry, has launched the first Stratum V2 Bitcoin mining pool. This significant development follows a successful funding round led by Bitcoin VC Trammell Venture Partners. The launch marks a pivotal step towards decentralizing global Bitcoin mining, empowering individual miners, and transitioning away from the current centralized mining model.

Founded by Alejandro de la Torre, former Vice President of BTC.com and Poolin, and Filippo Merli, lead developer of the open-source Stratum Reference Implementation (SRI), DEMAND is on a mission to maximize miner profits while reinforcing Bitcoin's decentralization. De la Torre, co-founder and CEO of DEMAND, has long identified mining pool centralization as a critical issue in the Bitcoin mining industry. He emphasizes the need for a decentralized mining ecosystem that balances mining decentralization and economic sustainability for miners.

A key component of this transition is the development and adoption of Stratum V2, an open-source effort led by the SRI team and Bitcoin developers worldwide. Stratum V2 gives control of creating blocks back to individual miners, introducing significant security upgrades over the Stratum V1 protocol. This shift is essential for the long-term health and vitality of Bitcoin, ensuring that the mining ecosystem remains decentralized and economically sustainable.

Following the launch of their solo mining pilot in late 2023, DEMAND has been actively contributing to the testing and building of the SRI. They have pioneered a novel mining rewards payout system called SLICE, which combines the benefits of Pay Per Last N Share (PPLNS) and Stratum V2’s Job Declaration. This system maximizes miner payouts, eliminates hidden fees, and avoids the economic incentives towards mining centralization seen with conventional Full Pay Per Share (FPPS) systems.

By leveraging Stratum V2, DEMAND benefits from end-to-end encryption, safeguarding against hashrate hijacking, reducing hashrate waste, and enabling more efficient data transfer and lower costs. DEMAND has also opened applications for miners to join as launch partners, offering 0% fees for the first two months and an exclusive two-year founding miner agreement for those who apply by March 28.

The growing activity surrounding the development and adoption of Stratum V2, along with other related approaches, signals the beginning of a renaissance in decentralizing global Bitcoin mining. This moment is historically significant for Bitcoin, marked by developments such as ETF inflows and the use of Bitcoin mining for rural electrification in Africa. Reinforcing Bitcoin's core properties has never been more crucial to prevent it from becoming a failed project.

DEMAND’s Stratum V2 pool serves as a reminder that global stakeholders are actively working to enhance and protect Bitcoin, a $1.6 trillion asset and global monetary network. This initiative ushers in a new era for Bitcoin mining, ensuring that the benefits of this revolutionary technology are sustained for future generations.