Dorsey led a $6.2 million seed funding round for Mummolin, the parent company of a new decentralized bitcoin mining pool called “Ocean,” according to a November 29 announcement.
The seed funding will support the launch of Ocean, which is designed to decentralize and revolutionize the bitcoin mining process. The mining pool aims to provide more transparency in the mining process and allow miners to receive block rewards directly from the Bitcoin network instead of through the mining pool.
Luke Dashjr, co-founder of Mummolin and long-time developer of Bitcoin Core, believes that the role of mining pools must change for bitcoin to exist as a truly decentralized currency.
“Ocean is a new type of pool that allows miners to be miners again. “We launched the most transparent pool and also the only non-custodial pool where miners are the recipients of the bag block rewards directly from the Bitcoin network,” Dashjr said.
Mark Artymko, co-founder and president of Mummolin, emphasized that the traditional BTC mining pool holds sole custody of block rewards and transaction fees before distributing them to miners. “This gives them the ability to withhold payments to individual miners, either by their own choice or by legal requirements,” said Artymko, adding:
“OCEAN’s non-custodial payment directly to miners from the block reward eliminates this risk and undue influence on the pool of miners.”
Jack Dorsey, a committed supporter of Ocean, is confident that the platform can solve the problem of greater centralization of mining pools that affects bitcoin. He taught:
“If I see a project that is good for bitcoin in general, and that is also good for me and my companies personally, it will be a simple decision for me and I am happy to be part of it.”
Ocean’s launch was announced at the Future of Bitcoin Mining Conference in the shadow of the 150-year-old Barefoot Mining hydroelectric dam in rural South Carolina. Barefoot Mining, Ocean’s first customer, has completely converted the dam, turning excess energy into large-scale bitcoin mining.
Ocean’s launch comes 139 days before bitcoin’s fourth halving event, which is expected to take place on April 17, 2024. After the halving, the current 6.25 BTC per block reward will be reduced to 3.125 BTC , which reduces incentives for bitcoin miners.