mining-and-combbase

Haircomb Basics

Mining and Combbase

Mining Process

Haircomb mining operates through a unique integration with the Bitcoin blockchain, utilizing Bitcoin blocks for consensus while maintaining its distinct tokenomics and reward structure.

  • Overview of How Haircomb is Mined: Unlike traditional proof-of-work cryptocurrencies, Haircomb does not have its own independent blockchain. Instead, it leverages the Bitcoin blockchain for securing its network. Each Haircomb transaction is linked to Bitcoin blocks, and miners who include specific types of outputs (namely P2WSH) in a Bitcoin block are eligible to claim Haircomb rewards (Combbase). This makes Haircomb effectively merge-mined with Bitcoin, relying on Bitcoin's robust hash power for security.
  • Key Aspects of the Mining Process:
    • Haircomb tokens (COMB) are generated and distributed via the inclusion of previously unseen P2WSH outputs in Bitcoin blocks.
    • Early adopters can claim rewards by submitting valid comb addresses (cryptographic addresses used in the Haircomb system).
    • To earn rewards, miners must include transactions with P2WSH outputs that have never appeared in prior blocks, ensuring unique contributions to the blockchain.
  • Differences or Similarities with Bitcoin Mining:
    • Haircomb leverages Bitcoin’s proof-of-work consensus mechanism but does not alter the mining process directly for Bitcoin miners. Instead, it incentivizes miners to include P2WSH outputs by awarding them Haircomb tokens.
    • Unlike Bitcoin, where rewards are fully visible on-chain, Haircomb utilizes off-chain storage for transaction history, ensuring private transactions and minimal data requirements for full nodes.

Combbase Reward Mechanism

Haircomb has a distinct reward system called Combbase, which issues COMB tokens to miners and claimers based on Bitcoin block activity.

  • Description of the Combbase Reward System:


The Combbase reward system is designed to distribute tokens to those who can identify and claim previously unseen P2WSH outputs on the Bitcoin blockchain. These rewards are not tied to computational work (as in Bitcoin's mining), but rather to the discovery of unique P2WSH outputs within a block, making the process partially luck-based for early adopters.

  • How Rewards are Distributed and Calculated:


Combbase rewards decrease sub-exponentially over time, unlike Bitcoin’s sharp halving cycles. The formula for the reward at Bitcoin block height h is:

reward = MAX(2.1 - FLOOR((LOG(h)/LOG(2))^6) / 100000000, 0) COMB

This ensures that rewards slowly taper off over centuries, with the total theoretical supply of COMB capped at around 12.4 million units.

  • For each block, only the first unique P2WSH output qualifies for a reward.
  • If a Bitcoin block contains no P2WSH output, no reward is distributed.
  • The reward for block h = 1 is 2.10000000 COMB, and by block h = 21835313 (~year 2423), the reward is effectively zero.
  • Details on Claiming Combbase Rewards and Related Processes:

To claim a reward, users must submit a valid Haircomb address derived from a SHA256 hash of a comb public key and the whitepaper hash. This address is then encoded as a P2WSH Bitcoin address, and if the P2WSH output is included in a Bitcoin block, the corresponding COMB reward is assigned to the Haircomb address.

Key points:

  • Only the first previously unseen P2WSH output in a block is eligible for a reward.
  • Rewards are credited anonymously, meaning only the recipient of a Haircomb token knows the history of their coins once the transaction is sent to them.
  • In case of Bitcoin blockchain reorganizations, previously claimed P2WSH outputs are reset, allowing claimants to attempt earning the Combbase reward again.

This mechanism encourages Bitcoin miners to incorporate P2WSH outputs into their blocks over time, further strengthening the merge-mined nature of Haircomb.