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How to participate in the anonymous liquidity mining of Tornado.Cash?

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In anonymous mining, users will be able to receive TORN through a two-level shielded liquidity mining system to fully protect user privacy.

Rhythm BlockBeats news, on December 18, the Ethereum privacy trading platform Tornado.Cash issued a document announcing the launch of a new governance proposal, which will launch the governance token TORN and start liquidity mining.

However, since general liquidity mining cannot protect user privacy well, it will force users to disclose their How long your deposit has been staked in the Tornado.Cash pool. This conflicts with Tornado.Cash's core value of "protecting privacy", so the Tornado team upgraded liquidity mining to "anonymous mining". In anonymous mining, users will be able to receive TORN through a two-level shielded liquidity mining system to fully protect user privacy.

After the user deposits in Tornado.Cash, the user will accumulate "anonymous points (AP)" in a "shielded account" ", this shielded account will shield your wallet address, balance, and will not reveal any of your deposit information. Once a user has accumulated enough AP on a shielded account, the AP can be converted to public TORN tokens at any time via Tornado’s custom Tornado.Cash AMM.

This system is a bit complicated. But it can ensure that users' privacy is always protected during the process of claiming TORN tokens.

Note: Only TORN coupons deposited after the deployment ceremony are eligible for anonymous mining, early TORN coupons can Used to claim TORN airdrops.

Here’s how it works:

Claim your AP

First of all, users must apply for anonymity for the spent TORN coupons Points (AP) (users cannot apply for AP before using TORN coupons). AP can only be claimed after the TORN voucher is used, there will be a little delay.

In order to apply for AP, the user's browser will generate a special zero-knowledge proof to calculate the claimable AP (according to the number of blocks the user's ticket has in the ETH Tornado.Cash pool), which is then added to the user's shielded balance. The following is a table of the number of APs per block corresponding to TORN coupons of different denominations.

The only information that other users see on the chain is that someone claims a certain TORN coupon for a certain Tornado.Cash pool A certain batch of APs with unknown denominations. To further improve privacy, users can claim APs through "relayers" (relayers who accept APs as compensation to pay for their relays).

Block account

Because AP is completely private and users need to generate a secret key to store AP balance. This key is randomly generated, then encrypted with your Ethereum public key (using Metamask's eth_getEncryptionPublicKey) and stored on-chain. This allows seamless recovery using the user's Ethereum key if you lose it.

This key is used to encrypt and submit claims and withdrawal data without revealing user identity.

Convert AP to TORN

To convert your mined AP into publicly visible TORN, you can use a custom Tornado.Cash Automated Market Maker (AMM).

TORN is continuously and evenly invested in this AMM (1 million TORN tokens for 1 year). All AP acquired at any point can be exchanged for TORN accumulated in AMM up to that point.

This does mean that the timing of converting AP to TORN is somewhat strategic: if too many people are being extracted at the same time , the conversion rate of AP/TORN will shrink, and if there are few people extracting, the conversion rate will increase. However, for the first 45 days, TORN will not be tradable at all.

Here’s a rough analogy: you can imagine that the TORN tokens are drip-fed over the course of a year Released into a bucket (AMM). AP tokens let you redeem how much TORN is in the bucket so far. If many APs participate at the same time, the TORN in the bucket will flow away quickly, and the ratio of each AP will be very low. But if AP holders are patient, it should level off over time, and the amount of AP to TORN should be roughly equal.

This is the whole process of redeeming TORN, unfortunately with some irreducible complexity. However, it is impossible for us to know how many APs will be generated during the anonymous mining plan (because it is private), so this is the only way to ensure that TORN has a fixed supply and all APs are converted Stay shielded until public TORN.

The specific formula of AMM is as follows:

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