# Mining Mechanism

### Mining Definition 📘

* Power Definition: In the MLH ecosystem, Power refers to the mining fees paid by users to participate in mining. Users can choose to purchase one or more Power to participate.
* Reward Mechanism 🎁: User-paid mining fees (S) are used to buyback MLH tokens, add liquidity, and reward miners, creating a positive feedback loop.

### Mining Difficulty and Reward Calculation 📐

* Dynamic Difficulty Adjustment: Mining difficulty adjusts dynamically based on total Power in each cycle to ensure fair token distribution and long-term sustainability.
* Reward Calculation Formula:
* ```
  Reward = (User's Power / Total Power) * Total Cycle Reward
  ```

### Mining Cycles and Reward Distribution 📅

* Cycle Definition: Each mining cycle lasts 24 hours.
* Reward Distribution: The system automatically calculates MLH rewards for miners at the end of each cycle, with automatic settlement of 8-day pool rewards (S) every 8 cycles.
* Automatic Staking: Unclaimed MLH tokens are automatically considered staked, earning mining fees.
* Reward Claim Mechanism: MLH tokens can be claimed at any time, with first cycle claims linearly released over 15 days, second cycle over 14 days, third cycle over 13 days, and so on until reaching a minimum of 5 days.

### Mining Advantages  🌟

* Energy Efficiency: Power mining significantly reduces energy consumption compared to traditional PoW mining.
* Fair Participation: Investors of any size have the opportunity to participate and receive proportional returns.
* Value Capture: The project better captures and distributes value through mining fee buybacks.

### Mining Strategy Recommendations 💡

* Regular Participation: Users are advised to participate regularly for optimal returns due to dynamic difficulty and reward adjustments.
* Batch Management: Choose appropriate batch quantities based on personal risk tolerance and investment strategy.
* Market Monitoring: Mining returns may be affected by market conditions; users should closely monitor market dynamics.
