# Phase 1: Mining Simulator Program)

The **Kaleido Testnet Mining Program** was the first phase of our points-based incentive system — a gamified experience that rewarded early users for participating in Kaleido’s testnet.\
The mining interface simulated real-world computational mining through **virtual workers, pools, and algorithms**, while actually tracking users’ **on-chain test activities** such as wallet connections, collateral deposits, and DApp engagement.

#### Core Concept

Each user could “mine” **Kaleido Points (KLD)** through simulated computational power, which represented their level of participation and engagement across Kaleido’s testnet ecosystem.

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The system consisted of:

* **Mining Pools** (network nodes where users connect)
* **Workers** (virtual agents performing simulated “hashrate” tasks)
* **Efficiency Metrics** (performance factors affecting reward speed)

#### Mining Structure

**Mining Pools**\
There were t

hree available mining pools, each with unique characteristics and reward dynamics:

| Pool Name        | Algorithm                    | Fee  | Difficulty | Description                                       |
| ---------------- | ---------------------------- | ---- | ---------- | ------------------------------------------------- |
| **Quantum Hash** | quantum.kaleido.network:3333 | 1%   | 2.5        | High-speed pool optimized for daytime performance |
| **Neural Mesh**  | neural.kaleido.network:3334  | 0.8% | 2.0        | Balanced efficiency for consistent earnings       |
| **Chaos Matrix** | chaos.kaleido.network:3335   | 1.2% | 3.0        | High-risk, high-reward pool with volatile output  |

#### Worker Types

Users could activate up to **seven virtual workers**, each with distinct efficiencies and performance bonuses:

| Worker Name         | Specialization | Power | Efficiency | Bonus                             |
| ------------------- | -------------- | ----- | ---------- | --------------------------------- |
| Quantum Accelerator | Quantum Hash   | 120W  | 70%        | +30% when matched to Quantum Pool |
| Neural Processor    | Neural Mesh    | 110W  | 65%        | +30% with Neural Pool             |
| Chaos Engine        | Chaos Matrix   | 130W  | 75%        | +30% with Chaos Pool              |
| Hybrid Miner        | Multi-pool     | 100W  | 60%        | +10% across all pools             |
| Quantum Lite        | Quantum Hash   | 90W   | 55%        | –                                 |
| Neural Lite         | Neural Mesh    | 85W   | 50%        | –                                 |
| Chaos Lite          | Chaos Matrix   | 80W   | 45%        | –                                 |

**Optimal Strategy:**\
Matching specialized workers with their preferred pools resulted in up to **30% increased efficiency**, while hybrid workers offered flexibility for unpredictable market conditions.

#### Reward Mechanics

Earnings were measured in **simulated hashrate (MH/s)** and translated into **Kaleido Points (KP)**, which were later converted to $KLD.

* **Time-Based Rewards:** Pools had variable efficiency cycles depending on global activity.
* **Power Efficiency:** Worker consumption affected yield stability.
* **Dynamic Algorithms:** Pool efficiency fluctuated hourly to simulate network congestion and demand.

**Example Formula:**

> Total Points = (Hashrate × Efficiency × Time Active) ÷ Difficulty

***

#### 💰 Rewards & Claiming

* Users could view total mining rewards directly on their Mining **Dashboard**.
* Rewards accumulated as **KLD equivalents**, pending conversion during TGE.
* Once Phase 1 concluded, participants received a **Mining Completion Badge** and became eligible for **Premium Node mining** and **SuperNode campaigns**.

***

#### 📊 Key Stats (Phase 1 Summary)

| Metric                            | Value                             |
| --------------------------------- | --------------------------------- |
| Total Testnet Miners Participants | 1352000                           |
| Total Points Mined                | 220M+ KP                          |
| Average Mining Efficiency         | 68%                               |
| Conversion Preview                | 100 KP = 1 KLD (provisional rate) |
