To relieve congestion on the Solana network, Hardhat Chad, the pseudonymous founder of the ore project, announced that all mining will be halted immediately.
Ore, a blockchain-based project launched on Solana, is exploring the right way to deploy using a Proof-of-Work (PoW) token distribution mechanism. The project is experimenting with combining the security of PoW with the fast transaction capabilities of Solana.
Since its introduction, Ore’s activity has significantly contributed to network congestion, affecting transaction schedules and leading to high transaction failure rates, especially due to the meme coin craze on the network.
“Pausing now will give us much needed time to study the data, build our team, and focus our energies on getting v2 right,” said Chad. post.
The outage comes shortly after the price of the ore surged from around $93 to over $300 following the announcement of a token supply pause, before settling around $175, according to CoinGecko.
Meanwhile, Solana (SOL) has seen its value decline, falling 3% over the past 24 hours. It is currently sitting at $133, worsening the bearish trend.
Solana operates on proof-of-history and proof-of-stake consensus mechanisms, promoting high throughput and low transaction costs. This framework differs significantly from Bitcoin’s energy-intensive PoW mechanism, which Ore initially sought to replicate in Solana.
In the future, the Ore project plans to introduce an improved version of the token with structural incentives for retention as Solana implements updates to improve performance and manage congestion.