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ScryptCube: Withdrawal Fee. My idea of how to make it 4 times smaller

In this post I will tell you how the Scryptcube withdrawal system works. I have an idea how to make the fees for the withdrawal of BTC 4 times less for users, while ScryptCube will not lose money, but even earn!


Withdrawal Interface

Unfortunately, I will not be able to enter the withdrawal interface now, because in the morning I bought 1 TH/s using a payment from the balance. Who has not read the article on the topic of Reinvest and why it is better to use a payment from the balance - be sure to read it.

scryptcube withdrawal

Now my interface looks like this - there is not enough Bitcoin in my account to request a withdrawal. But it's okay, it won't stop me from writing an article.


User transactions

Since I cannot make my withdrawal transaction, I asked for screenshots in the official Scryptcube telegram chat. User Cyrus gave this screenshot thanks to which I can find the transaction chain.


scryptcube withdrawal

Here is the transaction - e7aded820d51a3468431c497950fae2fbe7a9de3a7fba067da046a06f2b93e8d

scryptcube proof or mining

As we can see, the payment is made from the bc1qp62ea5urscgw03hzn9v2mees5x5q2jadg0r5l0 wallet to the user's wallet 3L3sfvoRBBqLuZb5PTQgfoAePAGe511J41, and the change - to the bc1q6qmw938sw5cd6vqrf65gaac09rrrklayjytp05 wallet. This change address will be used in the next withdrawal for another user, еtc.

Now I will make 9 jumps along this chain of transactions, calculate the amount of withdwals and fees, and give a summary.

scryptcube transaction chain

All these transactions happened in one transaction chain within 36 hours. The first is dated 2021-02-24 17:36:19 UTC, the last - 2021-02-26 05:30:17 UTC. I think there are several such transaction chains, because when the withdrawal system puts a user's transaction to withdraw, it cannot be used for another client until it receives confirmation from the network to avoid double spending.

Several such chains can work during the day. How many - I do not know. Probably 5-10.

Comparison with other cloud mining services

From my own experience, I can say that no one except ScryptCube gives such low fees and a low initial threshold for withdrawal.

It's absolutely safe to say that 0.00020000 BTC per transaction is not much. For example, in the Hashing24 cloud mining service, this value is 5 times greater and this value is constant. And for Scryptcube, it depends on the recommended level of the fee in the network, so that the transaction is quickly included in the blockchain, and you do not wait for it for days.

hashing24 withdrawal

Summary for this chain

scryptcube withdrawal

In such a chain, for 9 transactions, users and ScryptCube lost 0.00184615 BTC of their profit. The saddest situation was in the 7th transaction, where the user put 0.00030563 BTC on withdrawal, and received only 0.00010000 BTC on his wallet address. For him the fee rate was 67.28%. That's too much.

That is why it is better not to withdraw small amounts from the balance, because a large share of the BTC earned will be taken by the fees.

In this case, the fee is received not by the Scryptcube, not by you, but by the miners.

Nobody benefits from such a system - neither you nor ScryptCube.

But this can be fixed. Now I will tell you how.


How can the amount of fees be reduced?

Let's go back to e7aded820d51a3468431c497950fae2fbe7a9de3a7fba067da046a06f2b93e8d transaction and try to repeat it ourselves through Electrum, which I am using.

scryptcube withdrawal

As you can see, Electrum also advised me to set the fee at 20,000 satoshi, as does the ScryptCube.

And if I conduct these 9 transactions one at a time, I will have the same amount of bitcoins lost for the miner fee.

But there is another way - to include all 9 withdrawal requests in one transaction by pooling them. This is called "Pay to many".

scryptcube pay to many
By including all 9 withdrawal requests in one transaction, I will pay 0.00044737 fees for this. For all 9 in total!

At the same time, the transaction processing speed will not change. But each client could pay less for their BTC withdrawal.


What ScryptCube can do for its users

I believe that in the BTC withdrawal interface, ScryptCube can give users a choice of two options:

  • The usual withdrawal of BTC where only their payment will be included in the transaction.

  • Slow withdrawal of BTC where their transaction will be pooled with several other transactions to reduce the amount of the fee.

In the second case, the user should understand that the withdrawal will not be made instantly, but only upon reaching the number of transactions included in the pool.


Benefit for everyone: both for the user and for the Scryptcube

Let's say the ScryptCube will accumulate 9 requests for withdrawal, as I did in my research. In general, they can do much more - 10, 25, or even 50. It all depends on the number of their daily volume of requests.

In the "Slow Withdrawal" rules, customers can be notified that their transaction will take place at 00:00 UTC on the next day.

Such a withdrawal will have a flat fee of 0.00005000 BTC, which is 4 times less than the current commission. The ScryptCube can also change this value depending on the network fee level.

Let's say there are only 9 withdrawal requests per day, which I doubt, because there are more than one transaction chain for sure.

Let me remind you that earlier we got the following results:

scryptcube withdrawal pay

But with the system "Pay to Many" we can get the following result:

Look! And users paid less fees and even ScryptCube took their profit - they earned 263 satoshi on the difference!

And if we include 8 more transactions to these 9?

scryptcube promo code

The fee for such a transaction for 17 withdrawals will be 69,023 Satoshi, and the ScryptCube will take 85,000 (17 * 5,000) Satoshi fees.

Then users will pay 4 times less than now the fee and ScryptCube will earn 15,977 Satoshi! Everyone wins!

Conclusion

If, in addition to the existing system - "1 request - 1 transaction", ScryptCube also make the "Pay to Many" system, then everyone will benefit - both the users and the ScryptCube.

It all depends only on the Scryptcube programmers - whether they can implement such a system.

For users, such a BTC withdrawal system will be somewhat slower, but they will happily use it, because the withdrawal fee will be several times lower.


Thanks a lot for your attention. I will be glad if you liked this article. If you convey my idea to the owners of the Scryptcube service, and maybe soon we will have lower fees for the withdrawal of BTC.

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