Pega Pool Aims to Make Bitcoin Mining Environmentally Friendly with Carbon Offsets

[ad_1]

A new Bitcoin mining pool set to launch in 2023 aims to provide an eco-friendly alternative to the industry’s notoriously high carbon footprint, using carbon offsets to reduce its environmental impact and reward miners for using renewable energy.

UK-based Pega Pool, launched in Q1 2023, is opening its offer to Bitcoin mining customers regardless of their renewable energy use, but will reward customers who mine renewable energy with a 50% reduction in their pool fees , from 2% to 1%.

Additionally, a portion of pool fees from customers using non-renewable energy will be allocated to carbon offset programs that plant trees to reduce the environmental impact of mining activities.

Bitcoin mining fossil fuel problem

The bitcoin mining industry is coming under increased scrutiny over its use of fossil fuels. According to a September 2022 study by the Cambridge Center for Alternative Finance, fossil fuels account for nearly two-thirds (62.4%) of Bitcoin miners’ electricity mix.

Between 2020 and 2021, the average intensity of Bitcoin emissions fell from (491.24 gCO2e/kWh) to (531.81 gCO2e/kWh), suggesting that the sustainability of the electricity mix has deteriorated, according to the authors of the studies.

The energy consumption and environmental impact of Bitcoins has led to global pushback from countries and companies. In May 2021, electric vehicle company Tesla dropped plans to accept payment for its products in Bitcoin, with CEO Elon Musk stressing concern over the growing use of fossil fuels for Bitcoin mining. The following month, China cracked down on Bitcoin mining, citing its commitment to “carbon neutrality” at the 2020 United Nations General Assembly.

This has raised awareness and adoption of sustainable bitcoin mining, with some proponents claiming that bitcoin could actually help accelerate the transition to renewable energy.

Times of crisis

As the crypto market faces a protracted slump, Bitcoin miners are feeling the squeeze on their profit margins as the difficulty of mining Bitcoin has skyrocketed and the price of cryptocurrencies has fallen.

This has left bitcoin miners looking for profitable options that provide a steady stream of income; something that Pega Pool seeks to address with reduced pool fees for miners.

Customers who join the Pega Pools Early Access Waitlist will receive a permanent 50% reduction in pool fees, while customers accepted for beta testing will see 0% pool fees during the beta phase and an ongoing pool fee of 0.5% after launch. The pool also operates using a competitive pay-per-share plus (PPS+) revenue model.

Although the only customers currently mining with Pega Pool are its sister company Pega Mining and a handful of beta testers, it is already the 13th largest pool in the world by hashrate, according to BTC.com; with miners increasing their focus on sustainability and stable earnings amid the current bear market, its share is expected to increase.

Article sponsored by Pega Pool

This sponsored post was created by Decrypt Studio. Learn more about the partnership with Decrypt Studio.

Stay up to date with crypto news, get daily updates in your inbox.

[ad_2]