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KYM: Know Your Miner

KYM is our screening process for the introduction of new opportunities on the Block Green protocol. We only partner with highly financially robust mining operations. Their adequacy is determined based on three frameworks:
The proprietary underwriting scoring model is based on a due diligence process involving, among others, financials, peer comparison, mining performance KPIs, geographical and grid diversification, state of inventory, and supplier agreements.
Block Green’s sustainability index is under development together with industry partners. The first framework will focus mainly on the applicable energy source and resulting emissions. Already today, a growing share of the sites of leading Bitcoin miners are connected to renewable energy sources. However, many of these sites cannot guarantee a renewable baseload. We are also supportive of Bitcoin mining based on natural gas flaring. Although the burning of natural gas cannot be considered renewable it is somewhat sustainable, as there is no alternative industrial usage and - without flaring - the polluting gas would otherwise just be released into the atmosphere. A comprehensive thesis on mining sustainability and energy usage is on our roadmap.
One key aspect of the Block Green protocol is to derive the expected value of a Bitcoin miner's existing hashpower. Our forecasting and valuation harness multiple data sources, both public and proprietary. We are working with key actors in the Bitcoin mining ecosystem to predict the future value of hash power as accurately as possible.