See Saw Difficulty Change At Hilux
Recently, Hilux saw its difficulty going up and down quickly due to the sudden inflow of hashrates as well as sudden pull of the plugs. As a result, we saw longer than usual block times when the huge hash power suddenly disappears.
Logically speaking, the higher a pool’s hashpower, the faster it is for a block to be solved, hence rewarding the mining pool which solves it with 20 HLX. Out of these 20 HLX, 12 HLX goes to the Masternodes while the miners will get 8 HLX. Traditionally, Bitcoin uses a difficulty adjustment frequency of once every 2016 blocks. This means that if there is a sudden increase in hash power, the difficulty will remain the same until the next 2016th block. This is okay for Coins with huge enough hashpower that it becomes expensive to suddenly increase and decrease hash power.
However this poses a problem for new Coins because miners could enter in huge Hash Powers and leave after the difficulty is high and come back again when difficulty is low, hence rinse and repeat. To mitigate a slow difficulty adjustment issue, Evan Duffield from Dash came out with a new difficulty adjustment algorithm called Dark Gravity Wave V3 which adjusts difficulty at every block. It uses a mathematical method of measuring the exponential moving averages and simple moving averages to dynamically adjust the difficulty so that pool hoppers will not benefit as much as the traditional Bitcoin difficulty adjustment algorithm. This in turn allows fast difficulty adjustments to match the current hash power in the network.
What does this mean for Hilux?
As aforementioned, Hilux uses Dark Gravity Wave V3 difficulty adjustment algorithm. The advantage of pool hopping gets smaller as the amount of miners and hash power increases. Even if hash power stays low, we wouldn’t sweat over it because the difficulty adjustment changes quicker as time goes by due to the moving averages.
We should focus our efforts in usability of the coin than worrying about miners coming and leaving.