To alleviate congestion on the Solana network, the pseudonymous creator of the Ore project, Hardhat Chad, announced an immediate halt to all mining.
Ore, a blockchain-based project launched on Solana, is exploring the right distribution method by using a proof-of-work (PoW) token distribution mechanism. The project is experimenting with combining PoW’s security with Solana’s fast transaction capabilities.
Since its introduction, Ore’s activity has contributed significantly to network congestion, impacting transaction scheduling and leading to a high rate of failed transactions, especially from the meme coin frenzy on the network.
“By pausing now, I will gain much needed time to study the data, organize a team, and focus our energies on getting v2 right,” Chad said in a post.
The suspension comes shortly after Ore’s price surged from around $93 to over $300, following the announcement of the paused token supply, before settling at approximately $175, as per CoinGecko.
Meanwhile, Solana (SOL) has seen its value decline, with a 3% drop in the past 24 hours. It currently sits at $133, worsening a bearish trend.
Solana operates on a proof-of-history and proof-of-stake consensus, facilitating high throughput and low transaction costs. The framework heavily differs from Bitcoin’s energy-intensive PoW mechanism, which Ore initially sought to replicate on Solana.
Looking ahead, the Ore project plans to introduce a revamped version of its token with structural incentives for holdings as Solana implements updates to enhance performance and manage congestion.
