Fractal Bitcoin Merge-Mining Could Boost or Slash Miner Revenues

The launch of Fractal Bitcoin, a new Bitcoin sidechain, has sparked debate in the mining community. The sidechain, which is merge-mined with Bitcoin, introduces a unique mechanism called Cadence Mining, allowing Bitcoin miners to merge-mine every third block for Fractal Bitcoin rewards. This could potentially boost miner revenues by increasing the number of rewards they receive from both BTC and Fractal Bitcoin tokens.

However, there are concerns that Fractal Bitcoin could lead to a decrease in network fees on the Bitcoin blockchain, which might hurt miner revenues. With 50% of Fractal Bitcoin’s 210 million tokens allocated for mining and the other 50% pre-mined, miners are carefully weighing the potential benefits and risks of participating in this new ecosystem.