Ozcoin mining pool payouts suspended

OZCoinAn announcement on BitcoinTalk by Ozcoin mining pool operator Graeme Tee says that they will be temporarily suspended while he works out a payment issue.

According to Graeme the problem originated when he made a mistake with calculating the PPS payout (Pay Per Share) for the pool.  Apparently the last 50 PPS blocks earned a total of just under 1247 BTC but the pool actually paid out over 2071 BTC leaving a shortage of 824 BTC totally depleting the pools wallet.

Graeme is attempting to make up the shortfall out of his own funds but his personal ‘stash’ of bitcoin does not cover.  He is in the process of either borrowing the addition funds or selling his own Avalon ASIC pre orders to cover the outstanding amount.

If you want to help Ozcion out of the situation Graeme has asked for you to use the Ozcoin mining pool (even though payments are currently suspended) to help generate income for the pool to cover as much as possible.

Graeme finishes up by saying “I apologize for this major hiccup but am doing my best to get these issues resolved as I think more pools closing is not good for Bitcoin.”

Ozcoin is one of the oldest and most reputable bitcoin mining pools that started operation on the 7th of July 2011.

Hello Miners
I made a mistake:
A week ago I was getting concerned at the continued run of bad luck, I should have turned PPS off then.
Luck did not improve and after not sleeping well I got up at 3:00am to find we were on another long block and realized something needed to be done immediately.
The last 50 blocks on PPS
paid out  2071.11934723
earnt     1247.92580065
made up of
10 of last 50 payout less than 25btc
24 between 25btc and 50 btc
16 of last 50 payout more than 50btc
When the pool gets 25btc + a little transactions fees per block it is easy to see this is a problem.

Something that didn’t help:
Miners moving from DGM to PPS when round went over 100% of Difficulty, I found ~40% of the pool was on PPS until share count passed difficulty then PPS lept to 80%+ of the pool – good for the miners, not so good for the pool. We initially coded payout method changes only be available at end of round but when PoT was introduced this changed – my fault for not making sure miners could not exploit this aspect of the pool.

About Payouts:
Payout have been stopped until we can code the payout script to take up where it left off when wallet empties.
Currently payout script starts at user 1 every time, if I top up wallet and payouts run the oldest members will get paid as usual, newer members wont be paid for some time.
Changing the code means we will roll through all users before starting back at user 1, the fairest way I can think of currently and hopefully will be complete within a few hours.

What I am doing:
I have put all of my personal coins into the pool and am trying to buy coins, another option I am exploring is borrowing 500-700BTc to be able to catch up on miners pay -not having a lot of luck with either yet, another option is to sell my batch2 Avalon preorder (seems people are paying up to $50k for them – crazy I know)
I am also involved in other Bitcoin based businesses, any earnings of mine from these I will be putting into pool as available until pool is “back on it’s feet” or loans repaid if I am able to secure one.

What miners can do to help:
Keep mining
Anyone that is able to wait a little longer for coins could remove payout address until pool funds are replenished allowing those more in need of payouts to be able to come to top of the queue quicker
Above all be patient, I am committed to paying all miners as soon as possible and continuing to improve the Ozcoin pool.

I apologize for this major hiccup but am doing my best to get these issues resolved as I think more pools closing is not good for Bitcoin.

Best wishes
GraemeGraeme – Ozcoin Pool operator

Neil Fincham, the MineForeman has over 20 years experience in the computer industry and runs the MineForeman mining operation for the co-op members.He is also very dyslexic, so he appreciates anyone pointing out spelling errors.

Posted in Bitcoin, Mining, News, Pools

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