Mining ENRC Overview

https://energychain.ca/product-category/mining-enrc

Mining ENRC is an integral part of the Energy Chain ecosystem, where contributors are rewarded for completing and submitting comprehensive summaries of past energy projects, as well as for achieving milestones in ongoing projects. ENRC is awarded based on a combination of completed legacy projects and contributions to new energy initiatives tracked on the blockchain.

How ENRC Mining Works

1. Completed Energy Project Summaries:
   • Awarded for Past Projects: Participants can submit detailed summaries of legacy energy projects such as oil, gas, oil sands developments, thermal, renewables. These projects must outline the full lifecycle from start to finish, including exploration, production, processing, and decommissioning (if applicable).
   • Legacy Project Equity: Legacy projects that have historical significance or that showcase innovative processes may receive additional ENRC tokens based on their impact and completion.
2. Ongoing Projects on the Energy Chain:
   • Earning Through Milestones: Active projects listed on the Energy Chain can earn ENRC for reaching predefined milestones. These can include environmental compliance, regulatory approvals, project construction phases, or successful production runs.
   • Milestone Examples: Examples include hitting a production quota, completing a processing facility, or achieving a successful energy distribution stage.
3. Proof of Accomplishment (PoA) Evaluation:
   • All submitted projects and milestones are evaluated by Project PoA Evaluators, a group of designated node operators responsible for verifying the validity, completeness, and impact of each project. The evaluators ensure that the project summaries and milestones meet the established criteria for mining ENRC tokens.

ENRC Mining Incentives

• Legacy Projects: The more comprehensive and detailed the submitted legacy project, the higher the potential reward. The project’s significance within the energy sector, its contribution to technological advances, or its impact on the environment are all factors that influence the ENRC reward.
• New Projects: Active projects are incentivized to achieve their milestones efficiently and in compliance with best practices. Each successful milestone on the Energy Chain unlocks ENRC tokens, encouraging the project owners to adhere to timelines and quality standards.

Token Distribution

ENRC tokens are distributed upon successful verification of either legacy project summaries or milestone achievements. Each project or milestone is assigned a specific ENRC value based on its complexity, scope, and contribution to the energy ecosystem.

Example Earnings

• Past Project Summary: A complete historical summary of a major oil sands development could earn a significant ENRC reward, proportional to its economic and environmental impact.
• Ongoing Project Milestone: Completing a critical drilling milestone or production quota in a gas project could earn incremental ENRC rewards as the project progresses.

By mining ENRC through energy project contributions and milestones, stakeholders gain both financial incentives and recognition within the decentralized energy ecosystem. The PoA evaluators ensure that each token awarded is backed by real-world energy achievements, promoting transparency and accountability.

Project Evaluation Forensic Appraisal (PEFA) Overview

The Project Evaluation Forensic Appraisal (PEFA) process is an essential step in determining the value of energy projects on the Energy Chain. This system is designed to appraise a project’s value based on a forensic analysis of its lifecycle, financial returns, and environmental impact. Once appraised, projects are awarded ENRC tokens, equivalent to the appraised value, with gas fees applicable for the transactions.

What PEFA Does

1. Comprehensive Evaluation:
   • PEFA examines every aspect of a project—its conception, financing, operational phases, environmental compliance, and completion. This includes oil, gas, energy infrastructure, and other projects related to the energy sector.
2. Forensic Appraisal Methodology:
   • The evaluation process involves deep forensic analysis. Key factors include the project's economic viability, resource consumption, technology used, environmental sustainability, and overall contribution to the energy value chain.
   • Appraisal reports take into account regulatory adherence, production outcomes, and potential future revenues to generate a comprehensive value.

ENRC Token Awarding System

• ENRC Awarding: Once the forensic appraisal is complete, the project is awarded ENRC tokens equal to the appraised value. For example, if a project is appraised at $5 million, it would receive an equivalent value of ENRC tokens. This ensures that the token represents real-world assets and project values.
• Gas Fees: Each transaction in the awarding of ENRC involves gas fees, which cover the computational and operational costs of processing transactions on the blockchain. The fees are paid in ENRC and are essential for maintaining network security and performance during the token distribution process.

Benefits of PEFA on the Energy Chain

• Accuracy and Transparency: PEFA provides an accurate appraisal of the real-world value of energy projects. By leveraging blockchain technology, the system ensures transparency and immutability of the data, making it a trusted method for determining project worth.
• Incentive for Compliance and Success: As ENRC tokens are distributed based on the appraised value of the project, companies are incentivized to not only complete projects but also to meet high standards in efficiency, environmental impact, and regulatory compliance.

Key Components of PEFA

• Ownership and Title: Each project must provide clear ownership documentation and title to the assets involved in the project.
• Evaluation Reports: The forensic analysis must be thoroughly documented, covering every stage of the project from inception to conclusion, with detailed financial evaluations.
• ENRC Gas Fees: These fees are required to process the smart contracts, ensuring that all transactions are recorded on the Energy Chain with transparency and security.

By ensuring that ENRC tokens are awarded based on solid forensic appraisals, the system not only creates a reliable and transparent blockchain ecosystem but also incentivizes participants to submit thorough, compliant, and successful energy projects.