Proof-of-work mining pool operator Luxor Technologies launches a new derivatives product based on a new commodity called “hashprice.”
The new product, dubbed the Hashprice Non-Deliverable Forward (NDF) contract, is a cash-settled instrument that will expose institutional investors to Bitcoin mining without them directly operating mining equipment.
Hashprice is a term coined by Luxor. It describes the revenue generated by the company’s hashrate, a measure of the company’s computing power to create a new transaction block and add it to a proof-of-work blockchain. Mining revenue is paid out to miners for successfully adding a new block to the blockchain and consists of a block subsidy and transaction fees. Mining difficulty also influences revenue since the more computing power comes online, the more difficult it is to finalize a transaction block.
In the NDF contract, one party will agree to buy hashprice from the miner at a future date for a certain price. When the contract
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