# AP Mining

## **Introduction**

Anonymity Points (AP) mining is a unique feature of PortalGate that promotes enhanced privacy within cryptocurrency transactions. The principle behind AP mining is simple but effective – users are incentivized to contribute to privacy by depositing and maintaining assets in a specific pool.

By depositing assets into the pool, users aid in obfuscating transaction trails, thereby making it significantly more challenging for outside parties to link transactions to individuals. This process essentially creates an additional layer of security and privacy, which is increasingly crucial in the modern digital age. Users don't merely contribute to their personal privacy but to the entire network's privacy, benefiting all participants and strengthening the system's overall resilience.

The incentive for users to participate in this process comes in the form of Anonymity Points (AP). These points, which can be earned over time based on how long a user's assets remain in the pool, can later be exchanged <mark style="color:green;">(Portal Gate v1: has a special ERC-20 token called PortalGateAnonymityPoint. This token holds the same value as a normal AP point)</mark>.

In essence, AP mining not only serves as a means to enhance privacy within the PortalGate system but also as a tool to stimulate user engagement and active participation in the maintenance of the network's security. This innovative approach ensures that privacy doesn't become an isolated responsibility but a collective effort shared by all participants.

By engaging in AP mining within the PortalGate ecosystem, users contribute to a more secure and private digital environment while reaping financial rewards. It's a robust method that aligns individual incentives with the broader goals of enhancing privacy and security in the world of cryptocurrencies.

## **Understanding AP Mining in PortalGate**

Anonymity mining in PortalGate rewards participants with anonymity points (AP) based on how long they hedge their assets in a pool. It's a mechanism that increases user engagement to contribute to privacy. The process can be expressed through a simple formula:

$$AP Reward=X×R$$

Here, $$X$$ represents the duration in the pool (in blocks), signifying the length of time the assets are hedged, and stands for the mining rate, a predetermined factor that influences the reward.

By applying this formula, users can easily calculate the potential AP reward. Engaging in AP mining not only fosters greater privacy within the PortalGate ecosystem but also offers rewards, creating a mutually beneficial relationship between individual incentives and the broader goals of the platform.

### **How to Earn AP**

Earning AP is a systematic process that begins with deciding the amount and asset to deposit. After connecting and clicking "Deposit," the user must record the depositing note and back it up safely. Following this, the user generates the proof and submits the transaction. The AP reward can be tracked, and the longer the deposit remains active, the more AP is earned.

### **How to Claim AP**

The user takes an active deposit through an unspent note and decides whether to use a relayer. Upon visiting the mining route of the application and entering the spent note, the user can claim the reward or wait if needed. This will not give you any reward yet since it only claims a reward that can be withdrawn later.

## Special Notes on Version 1

PortalGate version 1 is unique because it doesn't have its governance and token. As such, AP points can only be exchanged for a special ERC-20 token called PortalGateAnonymityPoint, which holds the same value as a normal AP point.

### **How to Exchange AP in PortalGate Version 1**

To exchange AP in PortalGate version 1, the user navigates to the AP mining tab and enters the amount of AP to exchange. Since version 1 does not have its token yet, the exchanged AP will grant the user the respective PortalGateAnonymityMining token at the same value. After providing an address to receive the reward, the user finalizes by generating the proof and submitting the transaction.

This process ensures that the AP rewards remain valuable within the ecosystem even without the existence of a native token, and it maintains the alignment of incentives with the broader goals of privacy and security within the PortalGate platform.
