- The Foundry of the Digital Currency Group (DCG) will soon stop offering free services to its customers.
- The Bitcoin mining company will start charging a pool fee to its members from April 19, 2023.
- Foundry has been offering its mining pool services for free since its inception in 2019.
Foundry, the Bitcoin mining company owned by the Digital Currency Group (DCG), will suspend free services for its customers later this month. The decision to charge fees is likely prompted by the losses and liquidity issues that Barry Silbert’s crypto conglomerate has faced in recent months.
DCG’s Foundry is trying to increase revenue with pool fees
According to a report by BloombergFoundry, owned by DGC, will begin charging tier-based fees from its clients for providing Bitcoin mining services. The New York-based company, which happens to be the world’s largest active BTC mining pool, has sent a message to its customers informing them about the new fee-based model. The surcharges will take effect between April 19 and April 22.
As the Foundry USA Pool continues to grow, we are introducing tiered rates that allow us to further expand our feature set and stay within our FPPS [Full Pay Per Share] payout model,”
Foundry’s message to customers
In terms of fees, Foundry’s post stated that price levels for each quarter will be determined by the average hashrate of the previous quarter. The Bitcoin mining company’s fee-based model comes four years after its inception. The company’s zero-fee model has been a major factor in its popularity, making it a share network of over 34%, making it the world’s largest Bitcoin mining pool by computing power.
The fee-based model has been good news for DCG, which has had its fair share of monetary and legal troubles in recent months. Foundry revenue will help offset some of the $1.1 billion loss the Digital Currency Group reported in 2022. Genesis, the crypto conglomerate’s lender, is currently undergoing Chapter 11 bankruptcy proceedings.