How Does Ambassador Mining Work?

1. Ambassador mining never provides a “share” or a “percentage” of what anyone you have invited does.

2. Merit invented proof-of-growth, which is a totally new category of mining. I suspect others will use it in the future. We believe it to have major advantages over PoS or PoW. (We employ PoW also.)

3. With proof-of-growth, the protocol looks at the total community size and activity of each wallet. It is robust in that it works to be fair and ensure that bad actors are not rewarded for fake behavior.

4. Proof-of-Growth is lottery, just like PoW. Top ambassadors have a higher probability of winning ambassador rewards every period. So the more you grow the network, the higher your probability of winning a reward is. (And the rewards are proportional, so they get larger too.)

5. Community-size includes all the people you have invited, and all of the people they have invited, and so on. There is no depth-limit, though their affect on your total Ambassador Score is halved at each level. This was done to ensure that the earliest members of the community do not have an unfair advantage. And to ensure that people are rewarded for their own behavior more than anything else.

6. Again, it’s worth stressing that this is not just a “flat” count of how many people you’ve invited. That would be an easy metric to exploit. (Eg, make fake wallets.) In Merit, doing that would do you no good.

7. More information can be found here. The WhitePaper explains more theory, and the BluePaper explains the algorithm (and the other new Merit technology) in depth.