How to participate in Tornado.Cash anonymous liquidity mining

On December 18, the Ethereum privacy trading platform Tornado.Cash issued a post announcing the launch of a new governance proposal, which will launch the governance token TORN and launch liquidity mining.

However, because general liquidity mining cannot protect users’ privacy well, users will be forced to disclose how long their deposits have been pledged in the Tornado.Cash pool. This conflicts with Tornado.Cash’s core value of “privacy protection”, so the Tornado team upgraded liquid mining to “anonymous mining”. In anonymous mining, users will be able to receive TORN through a two-level shielded liquid mining system, fully protecting user privacy.

After the user deposits in Tornado.Cash, the user will accumulate “anonymous points (AP)” in a “blocked account”. This blocked account will block your wallet address and balance, and will not reveal any of your deposit information. Once the user has accumulated enough AP on the blocked account, he can convert the AP into public TORN tokens at any time through Tornado.Cash AMM customized by Tornado.

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

Note: Only the TORN coupons deposited after the deployment ceremony are eligible for anonymous mining, and the early TORN coupons can be used to receive TORN airdrops.

Here is how it works:

Claim your AP

First, the user must apply for the anonymity point (AP) for the TORN coupon that has been spent (the user cannot apply for AP before using the TORN coupon). You can apply for AP only after TORN voucher is used, there will be a little delay. 

In order to claim AP, the user’s browser will generate a special zero-knowledge proof, calculate the AP that can be claimed (according to the number of blocks in the ETH Tornado.Cash pool of the user’s bill), and then add it to the user block In the balance. The following is a table of AP quantity in each block corresponding to TORN coupons of different denominations.

f2sk0qgmlh1upiibheadingThe only information other users see on the chain is that someone has applied for a certain batch of APs of unknown denomination for a certain TORN coupon of a certain Tornado.Cash pool. In order to further improve privacy, users can claim an AP through a “relayer” (relayer will accept the AP as compensation to pay for the transfer fee).

Block account

Because the AP is completely private, the user needs to generate a secret key to store the AP balance. This key is randomly generated, then crypto with your Ethereum public key (using Metamask’s eth_getEncryptionPublicKey) and stored on the chain. In this way, if you lose it, you can seamlessly restore it with the user’s Ethereum key.

The secret key is used to encrypt and submit claim and withdrawal data without revealing the user’s identity.

Convert AP to TORN

To convert your mining APs into publicly visible TORN, you can use a customized Tornado.Cash automatic market maker (AMM).

TORN is continuously and evenly invested in this AMM (1 million TORN tokens per year). All APs acquired at any time can be exchanged for the 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 extracted at the same time, the AP/TORN conversion rate will shrink, and if there are few people extracted, the conversion rate will increase. However, in the first 45 days, TORN will be completely unavailable for trading. 

Here is a rough analogy: you can imagine that TORN tokens were released into a bucket (AMM) without any leakage in a year. AP token allows you to exchange how much TORN you have in the bucket so far. If there are many APs participating at the same time, the TORN in the bucket will quickly flow away, and the ratio of each AP will be very low. However, if AP holders are patient, they should stabilize over time, and the amount of AP to TORN should be roughly equal.

This is the entire process of redeeming TORN, but unfortunately there are some irreducible complications. 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 that all APs are converted Keep shielded before being public TORN.

The specific formula of AMM is as follows:


T-TORN mining plan allocation

Tvirt-virtual TORN balance

Twithdrawn——The amount of TORN that the user has withdrawn.

TORN-the amount of TORN the user will receive.

AP-anonymous points exchanged

W-AMM exchange weight constant

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