> For the complete documentation index, see [llms.txt](https://docs.gpu-fi.uk/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gpu-fi.uk/mining/how-mining-works.md).

# How Mining Works

Explains how GPUF is locked, mining power develops, and hourly rewards are distributed.

Mining begins when GPUF is committed to the mining contract. GPUFi calls this process mining, not staking.

{% stepper %}
{% step %}

### Commit GPUF

Commit GPUF tokens to the mining contract. The commitment starts the mining period.
{% endstep %}

{% step %}

### Build mining power

Mining power increases linearly over the commitment period. The calculation is:

$$
\text{Mining Power} = \text{Locked} \times \min(1, \text{days committed} / 21)
$$

This formula calculates mining power. It does not describe what percentage of a miner's balance is locked.

On day 1, mining power is roughly 5%. On day 21, it reaches 100%.
{% endstep %}

{% step %}

### Reach full mining power

After 21 days, mining power remains at 100%. The committed tokens do not become immediately withdrawable.

Gradual unlocking begins after day 21.
{% endstep %}

{% step %}

### Unlock gradually

After day 21, 10% of the locked amount unlocks per day. The full lockup becomes withdrawable by day 31.
{% endstep %}

{% step %}

### Receive hourly rewards

The mining pool distributes rewards every hour. A miner's reward depends on:

$$
\frac{\text{Miner Mining Power}}{\text{Total Mining Power}} \times \text{Hourly Mining Pool}
$$

Multiple hours can be claimed together to reduce gas overhead.

Initially, the mining pool receives 25% of the 3% creator tax. This equals 0.75% of every trade. The pool is intended to receive additional revenue from future GPU rental and inference API activity.
{% endstep %}

{% step %}

### Withdraw normally

Once the lockup fully unlocks, the miner can withdraw the remaining tokens.
{% endstep %}

{% step %}

### Exit early

Before completing the normal mining period, a miner can use an emergency exit. It returns 90% and sends 10% to the mining pool.

See [Emergency Exit](/mining/emergency-exit.md) for the exit rule.
{% endstep %}
{% endstepper %}

{% hint style="info" %}
There is no fixed APY or guaranteed reward. Mining rewards depend on the amount entering the mining pool and each miner's relative mining power.
{% endhint %}


---

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