We would like to share an update on the current situation regarding mining payouts of the Flits Miner operation. It looks like mining rewards are being reduced drastically due to different technical issues with our hardware. The server provider managing the Flits hardware installation has been affected by many different technical issues and as a result mining rewards have been lowered drastically. Not only have we been confronted with defective miners and electrical issues of the operation, but it also seems like our provider has difficulties keeping their investors and partners up-to-date on the situation. In an earlier update, we have already informed investors that we had some broken-down hardware that would require fixing. The timeline presented to us was, one week of research to find the issue and, if the problem would be fixable, it would take another week to repair it. In the meantime, a month has passed, and we have yet to receive an update on the situation and the condition of our hardware. We have already followed up on this situation, but we did not receive a reply or an update.
To give a better understanding of the size of this situation, we have made an overview of the status as for now:
- Defective hardware that has to be repaired takes longer than the estimation received from the provider;
- Communication with this provider is very hard at this moment as we do not receive follow-ups on our requests;
- The provider has shared several statements the last month, where they inform users that they are struggling with electricity and power issues for their operation site, meaning miners are often offline or not working properly;
- We have seen different partners struggling with the same provider we are working with, and we have heard different stories about possible issues;
Due to the points mentioned above, we are sorry to inform our users that payments will be reduced to a minimum, that payments may be delayed and there is a chance there might be no payment for certain weeks. We will do everything within our power to keep our investors up-to-date and act in their best interest. We will follow up with our provider and hopefully be able to provide some clear answers and improve the situation. We would also like to emphasize the fact that some users do not receive their BTC earnings cause the total amount does not exceed the threshold. Therefore, the user's earnings are granted to the user but unable to be paid until the combined earnings of a few weeks exceed the threshold and can be delegated to the user's wallet. We are sorry for the inconvenience, but this is also a result of the lowered rewards of the operation.
That said, we have also opened an active investigation into this specific provider to research the situation as presented by them to make sure that the information that is shared is accurate. To proactively tackle this issue, the team will have an official meeting this week to discuss the sustainability of this operation within the Flits Wallet App and if needed present the investors with a contingency plan.
Unfortunately, things are evolving like this, but we would like to keep our users up-to-date on the situation and make sure the correct information is presented. Please understand, we will not tolerate any FUD as long as we are still looking into the issue.
Thank you for your attention.