$ORE Up Over 150% On Relaunch - Will it Break Solana a Second Time?

When most of Solana’s network participants hear $ORE, they’re reminded of priority fee spikes, failed transactions, and the biggest threat to uptime in recent memory.

After relaunching a V2 model back in August 2024, just four months after the original protocol almost brought Solana to a halt, Ore is back with a fresh new mining mechanism.

In just a matter of days, Ore Supply has surged Solana’s app revenue rankings, with $ORE buybacks pushing prices up 150% in the last 24 hours. What is Ore’s new mining mechanism, and can Solana handle the strain?

Ore Returns with New Mining Protocol

Ore Supply, a creative protocol leveraging Proof-of-Work to distribute a hard store of value on the Solana blockchain, has relaunched with a new mechanic. Infamous for nearly bringing Solana to a standstill in April 2024, the old model has been redesigned into a far less resource-intensive system.

Ore Supply’s new mining protocol is essentially an onchain game of roulette. Miners deploy $SOL into one block in a 5x5 grid. Each round, a random number generator selects a block, with all the $SOL committed to the unselected blocks being shared amongst the winning miners. 

An additional 1 $ORE bonus is awarded to a singular miner on the winning block by weighted chance. With each passing round, 0.2 $ORE is added to the Motherlode, or jackpot, which has a 1/625 chance of being distributed among all winning miners and reset to zero.

The novel model has introduced further dynamics to gamify distribution, including a “refining” system that allocates 10% of each round’s winnings to each player’s unclaimed rewards. 

In line with the onchain trend of returning value to token holders, 10% of all $SOL mining rewards are collected by the protocol, which is then used to buy $ORE off the open market. While Ore’s return has been relatively stealthy, the new revenue model is already making waves in Solana app rankings.

Ore Enters Top 3 Solana Apps by Daily Holder Revenue

Since Ore’s soft relaunch, the protocol has steadily increased its daily revenue generation day after day, rising from $28,000 on October 20 to as high as $105k in the last 24 hours.

With 100% of revenue allocated to $ORE buybacks, Ore Supply’s daily Holder Revenue ranks third highest among all applications, beating out OGs like Raydium and Helium.

Newfound demand for $ORE is pushing prices to levels not seen since August 2024. Currently exchanging hands at $118, $ORE is up over 150% in the last 24 hours, surging over a staggering 700% on a weekly timeframe.

While the new Ore Supply mining mechanic is yet to reach the levels of interest and adoption of April 2024, the chances of the relaunch congesting the network are almost non-existent. Ore Supply’s new model is far less resource-intensive.

Additionally, Solana itself has grown significantly since Ore Supply first threatened the network’s health. The Layer 1 is more performant than it's ever been, with numerous network updates, like recent changes to increase CU limits, enabling Solana to scale higher and support a far more diverse range of onchain applications.

Read More on SolanaFloor

Solana’s ICO season is in full swing

MetaDAO, Metaplex Genesis Lead Solana ICO Boom

How Does Certora Protect the Solana Ecosystem?