Cryptionary

Instamine

fastmine

1. event

Instamine is an event where a large portion of a cryptocurrency's maximum supply is mined shortly after its launch. This can lead to a concentration of tokens among early miners, potentially resulting in an unfair distribution.

1.1

"Dash (DASH) experienced an instamine event at launch, where about 10% of the total supply was mined within the first 2 days due to a difficulty readjustment issue."

2. cause

Instamine can occur due to a variety of reasons. Sometimes, it's a result of mining difficulty not readjusting as designed, allowing miners to find blocks and gain rewards much faster than expected. In other cases, it may be intentionally designed to enrich the founders.

2.1

"Some critics argue that certain cryptocurrencies are designed for instamine to benefit the founders, although this is often disputed."

3. impact

The impact of instamine can be significant. It can lead to centralization of the token supply, which goes against the principle of decentralization in cryptocurrencies. It can also affect the token's price and stability.

3.1

"Instamine events can lead to price volatility, as early miners may decide to sell their tokens en masse, causing the price to drop significantly."

* All terms and definitions may update as the Cryptionary improves.

All terms

Dump Dust ERC-20 Token ERC-721 Token Ethereum Ethash Ethereum Virtual Machine Cryptocurrency Exchange Faucet Fiat Currency Flippening FOMO Fork FUD Genesis Block Halving Hash rate Hodl ICO IEO Instamine←JOMO Know Your Customer Lambo Lightning Network Limit Order Liquidity Locktime Majority Attack Market Cap Market Order Masternode Maximalist Maximum Supply Mempool Mining Mining Pool Minting Baton Mnemonic Mooning 🌕