This post is intended to give all IHS holders an overview of how IHS-to-contract conversion will work once the feature is online in the dashboard. The conversion is necessary because we are changing how hashrate in the dashboard is displayed from the old IHS model to a contract-based model. To find out how contracts work and which other new features are coming to Infinity Hash, please read this post on the contract launch.
The most important points
These are the most important points for all IHS holders before we go into the details of the conversion options:
- All IHS can be converted to mining contracts. Everyone will keep their exact IHS hashrate and the actual efficiency of the miners behind their IHS. From a reward perspective, nothing changes or is taken away. The biggest immediate change is that reinvesting becomes fully optional, and you can now pay out 100% of mining rewards instead of only 50%.
- IHS holders made Infinity Hash a reality by buying IHS, which doesn’t only include the miners behind the hashrate but also the infrastructure. Therefore, IHS holders will benefit from lower prices and other perks long-term with contracts too.
The biggest differences between IHS and contracts
Exactly as with IHS, the new contracts have no time limit and transparently provide daily BTC mining rewards without any prepayments. Here are the most significant changes of contracts compared to IHS for IHS holders converting their IHS to contracts.
Reinvestment becomes optional
Although the new contracts do have an auto-compounding feature (0% to 100%), reinvestment becomes fully optional. This results in double the rewards in your account on day one. You can now decide individually for yourself if you want to reinvest any of your rewards and when to do so (you can change it anytime). Go for the highest returns with 0%, copy how IHS worked with 50%, pick any other percentage value, or go with our new optimized mode. The choice is yours.
You always buy the best efficiency
With contracts, miners aren’t just thrown into one big pool regardless of their efficiency, like they were with IHS. When you buy new hashrate via contracts, you actually get the newest contract, which is backed by the latest, most efficient miners available. This makes the whole system more fair and gives you more control over which efficiency you want to buy and when you want to increase your hashrate within a Bitcoin cycle.
Withdrawal fees go to nearly zero
With the contracts update, manual withdrawals get replaced with automated withdrawals. This increases the non-custodial nature of Infinity Hash and, most importantly, allows us to do batch withdrawals and reduce fees for payouts to nearly zero (only the current Bitcoin network fee). You only need to enter your BTC wallet address right on the main page of the dashboard; everything else is fully automated.
No more repair costs
Since there is no more reinvestment wallet, repair costs for miners are directly included in the purchasing price for hashrate via contracts. For all IHS holders that convert their IHS to contracts, we’ll cover the full repair costs.
What you’ll get for each IHS
At the point of stopping sales of IHS, each IHS was backed by 107.32 GH/s of hashrate from actual miners. Each IHS holder will get exactly the hashrate of their IHS in contracts when converting. Based on the miners behind IHS, here is how the hashrate behind each IHS is mapped to contracts:
| Contract | Efficiency | Allocation |
|---|---|---|
| 1st Gen | 29 W/TH | 55.54% |
| 2nd Gen | 26 W/TH | 26.33% |
| 3rd Gen | 23 W/TH | 2.67% |
| 4th Gen | 20.5 W/TH | 5.93% |
| 5th Gen | 19 W/TH | 5.91% |
| 6th Gen | 17.5 W/TH | 3.28% |
| 7th Gen | 16.5 W/TH | 0.34% |
In practice, this means that you’ll get exactly the same rewards with exactly the same hashrate, backed by exactly the same miners you’d have gotten with IHS, just that you get 100% of the rewards to your dashboard instead of 50% of them going to the reinvest wallet each day.
Conversion options
We’ll provide two options for converting IHS to contracts to allow everyone to decide how to go forward for themselves. Regardless of which option is picked, the following advantages are given to all IHS holders:
1. No repair costs
We’ll cover all repair costs for contract hashrate received from converting IHS (repair costs are included in the purchase price for new hashrate purchases).
2. Free infrastructure
For all new hashrate purchases by prior IHS holders – including those made via auto-compounding – there is no infrastructure cost. This is calculated based on the average purchase price per IHS, which is added as a percentage discount to new auto-compound and regular purchases.
Example: A user bought 100 IHS at an average price of $2 –> the user receives an infrastructure discount of $200.
This allows a fair approach to honoring the differences in average purchase prices of existing IHS holders while also giving everyone the exact hashrate they bought when purchasing IHS during the conversion itself.
Option 1: A 25% discount with full conversion
This is the basic option with full IHS to contract conversion, regardless of whether the lower efficiency contracts you receive are currently profitable or not.
- You’ll get the full allocation of 1st Gen to 7th Gen contracts outlined in the table above.
- The older contracts will stay offline, and we’ll keep the older miners behind it at the farm so they can be switched on if and as soon as they are profitable again.
- You will get a full infrastructure discount based on the number of your IHS times your average purchase price per IHS (e.g., a $200 discount if you bought 100 IHS at an average price of $2) for all future purchases and all auto-compounding purchases.
The pure infrastructure discount based on the infrastructure cost portion of the 7th Gen contract (our newest contract and the one being sold right now) would be 25%. This option is a good pick if you think that older efficiency miners will get profitable again and you don’t want to miss out on potential rewards. Regardless of whether they get profitable again, you’ll have your full discount value based on your past IHS purchases for any new purchases of hashrate via contracts.
The resulting price per Terahash for 7th Gen contracts with this option is $18.75.
Option 2: A 50% discount with partial conversion
This is a partial conversion option and the option we as a team would recommend. With this option, you’ll get:
- The contract allocation of the 4th Gen to 7th Gen contracts (the ones profitable at the time of publishing this post).
- The same full infrastructure discount based on the number of your IHS times your average purchase price per IHS as with conversion option 1.
- An additional discount of the same amount as your infrastructure discount.
The additional discount is made possible by selling currently unprofitable miners behind the 1st Gen to 3rd Gen contracts and would result in a total discount of 50% for all new auto-compounding and direct purchases of the newest 7th Gen contract. This option is a good pick if you want to buy additional hashrate in the newest contract and keep mining sustainably long-term. Especially if you are looking to buy more hashrate, this option allows for an extremely low price per Terahash in the newest available miners.
The resulting price per Terahash for 7th Gen contracts with this option is $12.50.
When will the conversion options be available?
We are fully focused on finishing the conversion options right now, after we brought the new contracts online in the last few days. We are aiming to publish the conversion options within the next 1-2 weeks. Furthermore, we’ll keep the progress bar of the effort updated; it sits right at the top of our roadmap page.
Where will the conversion options be available?
The conversion options will be available as a pop-up directly in the dashboard, providing a detailed breakdown of how much hashrate in which contracts is received with each option. As soon as the conversion options are online, we’ll inform everyone about them via social media and email.
When will I have to decide? / I have questions!
There will be no rush to choose an option once they are online. We want to make sure that everyone can make an informed decision. If you are unsure what the above options would mean for your IHS or have any questions, please feel free to contact our support at any time!
What about xIHS?
Conversion to contracts will be possible with IHS and xIHS in the dashboard. For xIHS to contract conversion, the xIHS is automatically converted to IHS at the current ratio before being converted to IHS. We’ll provide a fast deposit option or manual conversion via our support for xIHS outside the dashboard as soon as possible.
Mid- to long-term, xIHS won’t really change apart from being backed by contract hashrate instead of IHS. We will be adding an option to stake contract hashrate for xIHS and claim contract hashrate from xIHS as soon as possible.