Pega Pool to make BTC mining eco-friendly

Key points:

• Bitcoin's energy consumption and environmental impact have sparked resistance from countries and businesses around the world.
• Pega Pool aims to offer an environmentally friendly alternative to the industry's notoriously high carbon footprint, using carbon offsets to reduce environmental impact and rewarding miners who use renewable energy.
• It will reward customers with renewable energy usage with reduced pool fees from 2% to 1%.
• Additionally, a portion of pool fees collected by customers using non-renewable energy sources will be allocated to a carbon offset program that reduces the environmental impact of mining activities by planting trees.

A new bitcoin mining pool, due to launch in 2023, aims to offer an environmentally friendly alternative to the industry's notoriously high carbon footprint, using carbon offsets to reduce environmental impact and rewarding miners who use renewable energy.

U.K.-owned Pega Pool, due to launch in Q1 2023, will open its product to bitcoin mining customers regardless of their renewable energy use — but reward customers with renewable energy usage with reduced pool fees 50%, from 2% to 1%.

Additionally, a portion of pool fees collected by customers using non-renewable energy sources will be allocated to a carbon offset program that reduces the environmental impact of mining activities by planting trees.

The Fossil Fuel Problem in Bitcoin Mining

The bitcoin mining industry is facing heightened scrutiny over its use of fossil fuels. According to a September 2022 study by the Cambridge Center for Alternative Finance, fossil fuels account for nearly two-thirds (62.4%) of Bitcoin miners’ electricity mix.

According to the study authors, Bitcoin’s average emissions intensity increased from (491.24 gCO2e/kWh) to (531.81 gCO2e/kWh) between 2020 and 2021, suggesting that the sustainability of the electricity mix has “deteriorated.”

Bitcoin's energy consumption and environmental impact have sparked resistance from countries and businesses around the world. In May 2021, electric car company Tesla dropped plans to accept bitcoin as payment for its products, with CEO Elon Musk highlighting concerns over "the rapidly increasing use of fossil fuels in bitcoin mining." The following month, China cracked down on bitcoin mining, citing its commitment to “carbon neutrality” at the 2020 United Nations General Assembly.

This has helped to increase awareness and acceptance of sustainable bitcoin mining, with some proponents arguing that bitcoin could help accelerate the transition to renewable energy.

Critical point

Bitcoin miners are feeling the pressure on profit margins as the cryptocurrency market faces a prolonged downturn, with bitcoin mining difficulty increasing and cryptocurrency prices plunging.

This has led Bitcoin miners to look for low-cost options that can provide a steady income stream; Pega Pool hopes to solve this problem by reducing pool fees for miners.

Customers queuing for early access to Pega Pool get a permanent 50% discount on pool fees, while customers approved for beta testing get 0% pool fees during Beta and a permanent 0.5% after-launch Mining pool fees. The pool also operates on competitive earnings per share plus (PPS+) revenue model.

Although the only customers currently mining with Pega Pool are sister company Pega Mining and some beta testers, according to BTC.com, it is already the 13th largest mining pool in the world by hash rate; Doubling down on sustainability and steady profits in a bear market, their stakes could increase.