tornado-cash-docs/anonymity-mining.md

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# Anonymity mining
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Anonymity mining is an incentive to increase the level of privacy in any coin-joining or coin-mixing protocols by rewarding participants anonymity points \(AP\) dependent on how long they hedge their assets in a pool.
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_This incentive began on December 18, 2020 and will end on December 18, 2021._
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Individuals deposit to any one of the anonymity pools that are supported \(ETH, WBTC, DAI or cDAI\) and are rewarded a fixed amount of AP per block, over the period their deposit remains in the pool. These points can then be exchanged for TORN once claimed.
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### Anonymity points \(AP\)
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_Readers should be aware some lower denomination deposits at the time of writing, do not produce a positive return due to the gas costs required to withdraw, redeem and exchange anonymity points_
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One of the community members created the resource of [a mining spreadsheet 13](https://torn.community/t/anonymity-mining-spreadsheet/720) that helps calculate annual percentage yields \(APYs\) for each pool and each denomination set within, through estimating the fees required to claim a reward. **It is highly recommended to view this resource and plan ones course of action before expecting to earn yield.** At the bottom of the spreadsheet, you can view each pool by selecting the associated tab.
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### How to earn AP
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1. Decide what amount and asset to deposit by selecting it through the dropdown menu, before clicking on "Connect" and "Deposit".
![](.gitbook/assets/m3fh0gl.png)
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2. Take a record of your depositing note and back it up safely, **do not share this with anyone or risk losing your deposit and reward.**
![](.gitbook/assets/vhustru.png)
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3. Generate the proof and submit the transaction.
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4. Your deposit should now be viewable on the bottom of the page, you can track how much AP it earns here; remember the longer your deposit remains active, the more AP you earn.
![](.gitbook/assets/k6juetp.png)
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_Notes that are active \(not withdrawn\) are known as “unspent” notes._
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### How to claim AP
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1. First you must create a mining account and store those credentials on-chain for easy recovery \(requires a transaction\), **like depositing notes, you should never share your mining recovery key with anyone** and ensure to back it up in a safe place. This feature is not supported by hardware wallets so its encouraged to store the information as presented_._
![](.gitbook/assets/lskzkgk.png)
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2. Take an active deposit through providing an unspent note and withdraw to an address of preference and decide whether to use a relayer or not \(_to maintain a deposits anonymity it is always advised to use a relayer_\), this will bring the note into a “spent” state.
![](.gitbook/assets/aid86cj.png)
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**Remember to still keep your depositing notes a secret even after withdrawing, as they still retain the ability to redeem AP.**
![](.gitbook/assets/bpsqxxr.png)
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3. Visit the mining route of the application and enter your spent note, you may be faced with one of the following situations.
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* **The ability to claim your spent note**: click the “Claim reward” button and submitting the transaction either by using a relayer or not, once confirmed your AP balance should update to reflect the action.
![](.gitbook/assets/e9jyqhu.png)
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* **The inability to claim a spent note:** _“Warning: The note is not yet ready for anonymity mining. You can wait few days before trying again”_ - This means the Merkle trees are out of sync and require a transaction to be updated.
![](.gitbook/assets/i6qtr0f.png)
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Updating the trees can be an expensive process, **it is recommended that users with small deposits wait for the larger miners to update the trees, this could take anywhere from a few days to a week**. If you want to view your event relative to the current pending batches. Click the _“Show mining note information”_ hyperlink, here you can also pay the transaction fees to sync the tree relative to your withdrawal through the “Update trees” button.
![](.gitbook/assets/d8dmxjj.png)
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### How to exchange AP
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1. Navigate over to the “Swap” tab on the mining page which can be accessed through the second navigation bar from the top of the page.
![](.gitbook/assets/ahrjxbq.png)
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2. Enter the amount of AP requested to exchange or select the “Maximum” option to convert your active balance. Below this input, information regarding the current AP/TORN rate and reward output will be displayed. Provide an address of preference to receive the reward, finalise by generating the proof and submitting the transaction through a relayer or not.
![](.gitbook/assets/wo55lao.png)
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3. If all steps were followed correctly, TORN will be transferred to the address of preference provided in step 2 of this section.
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### Closing remarks
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Congratulations, you have successfully participated in anonymity mining!
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It is always recommended to plan when deciding to mine any of the anonymity sets, users should also be aware that the [AP/TORN rate](https://duneanalytics.com/luckyallocator/Daily-AP-TORN-Rate-v2) is dependent on supply and demand, therefore, **the more people that claim the higher the rate becomes, and the less people that claim the lower it becomes**.
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For more information on anonymity mining, seek the following resources:
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* [Tornado.Cash governance proposal article](https://tornado-cash.medium.com/tornado-cash-governance-proposal-a55c5c7d0703)
* [Tornado.Cash anonymity mining optimisation article](https://tornado-cash.medium.com/gas-price-claimed-anonymity-mining-a-victim-but-now-everyone-can-claim-ap-5441aaa32a1a)
* [Anonymity mining explained \(technical\)](https://torn.community/t/anonymity-mining-technical-overview/15)
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_Regards to_ [_@sockawoo_](https://torn.community/u/sockawoo) _and_ [_@ethdev_](https://torn.community/u/ethdev) _for assisting in peer-reviewing_
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_Written by_ [_**@xgozzy**_](https://torn.community/u/xgozzy/summary)\_\_
2021-08-20 08:49:08 +00:00