The Cointiply Mining Game, which has remained in beta since its inception, has now been shut down and will be retired. Users of the Mining Game will receive a private message detailing payout status and schedule. Nothing else on the site is affected.
- The Mining Game is being retired.
- Cointiply will pay players based on how much they have earned on the site, plus a bonus, over time from a pool based on offerwalls and CointiPlay.
- Players will have access to a detailed report on their total site activity and how much they have been paid back.
We are announcing today that we have shut down the Cointiply Mining Game and temporarily suspended all Mining Game-related payouts. In this note we’ll explain why we’re shutting it down and how we plan to pay back the Coins you spent on the game and resume those payouts in a way that is sustainable.
For clarity we’ll say right up front that we will not be able to pay out everything you’ve *earned* in the Mining Game, though we will be able to pay out everything you’ve invested into it along with some of your earnings. We wish it weren’t this way, but simple math forces us to choose between paying you something and filing a bankruptcy. We’ve chosen to pay you something and keep Cointiply running for all.
At the root of the issue is the reality that we made some significant mistakes in the original formulation of the Mining Game. These mistakes have made the game completely unsustainable and, if we don’t stop the Mining Game entirely right now, Cointiply would quickly be forced to go out of business.
The first mistake we made was starting our Gem Conversion Rate too high and not correcting it immediately. Every Gem generated on the site above 18 Gems per Coin loses money, and we allowed billions of Gems to be generated between 36-60 Gems per Coin.
While the Gem Conversion rate has now reached a sustainable level – many of you remember the related correction we rolled out this summer – the damage has been done and there are simply too many Coins per Hour being generated from money-losing Gems to give us the time to survive the eventual correction.
This is inescapable math.
We also made some other, more minor mistakes such as allowing referral earnings to be generated as Gems (again, in the billions). If we could go back in time, we’d have changed other aspects of the game, too, such as including the Gems feature from the beginning, paying mostly from a pool, and paying out weekly, rather than hourly. The biggest problem, however, is the compounding nature of the infrastructure we put into place has escaped our ability to maintain.
We understand that many of you will never forgive us for the decision we are making. The reality, however, is we either shut down the Mining Game now or everyone loses everything in the next month or two.
We will provide every Miner an exact accounting of how many Coins they spent on the game and where those Coins came from. When you see those figures for your account, you will likely begin to understand the problem. That won’t make everything OK, but our purpose is to make clear why we are doing this. Here’s an example of a real account:
We will pay you back Coins earned on the site, including the Cointiply Faucet, offerwalls, videos, and referral earnings, plus 15%. We will pay this back over time from a pool based on site Activity. This will be a much larger pool than the current Mining Game bonus pool. It will take time for you to get your Coins back, but in this way you can be assured you will get your Coins back. Your share of that pool will be based on your share of the total amount owed, so everyone gets paid back equally. Once you have been paid back, you will no longer earn from that pool.
What you won’t get are all the compounded Coins earned in the Mining Game and reinvested back into the game. We know this sucks, but there is literally no mathematical alternative, and we feel terrible about this.
Summarizing The Good News, The Bad News, and The Future
The good news is that the Mining Game doesn’t earn us any significant revenue. In fact, your earnings from the Mining Game have always been paid out of Cointiply’s share of unrelated earnings from elsewhere on the site. We realize that’s the entire reason for all the bad news, of course, but this means we’ll still have the cash flow to pay former Mining Game players out over time as described above.
The bad news for us is that we’ll all be working on either reduced or withheld salaries until those Mining Game payouts are complete. This also means that the vast majority of Cointiply users – i.e. those who don’t play the Mining Game – will see no impact from this change. You’ll still be able to do all the things you currently do, and you’ll still be paid out on the normal schedule. The Mining Game is literally the only feature of the site that is affected by this, and it’s only used by a fraction of our overall users.
To that end, we have a list of new features we plan to add to Cointiply. We are here for the long term, and we look forward to continuing to serve all of you for many years to come.
For those of you who played the Mining Game – and especially those of you who built up earned balances with it – we are terribly sorry in a way that we cannot appropriately express. All we can say is we hope our transparency here, as well as our payouts to you, help earn back your trust over time.
Thanks so much for your support of Cointiply.