Loki to Change Hashing Algorithm and Disable Merged Mining
The Loki team in response to the discussions of members of its community about merged mining, its current hashing algorithm, and field programmable gate arrays (FPGAs) taking over mining, has decided to change its hashing algorithm. The team in an official post said:
The Loki community and the Loki team have expressed concerns about the alignment of incentives in merge mining. Both groups have pointed out that miners of TurtleCoin have been forced to mine Loki in order to continue to be profitable. This can create negative economic incentives where miners discard Loki in favor of increasing their TurtleCoin holdings and vice versa.
Loki can be merged mined with TurtleCoin. Whilst there are currently no risks in the pool distribution, there is the possibility of a 51% attack if large miners were to merge. Additionally, there is a tilt towards FPGA miners due to the current difficulty of CN-Turtle. The algorithm change is meant to address these concerns.
RandomX is the new algorithm. The Loki team has made some modifications to some parameters and will call its algorithm RamdomXL.
RandomX is a proof-of-work algorithm that aims to achieve longer-term ASIC resistance than the current CryptoNight-based tweaks.
Following a successful testnet which is expected to last for 2 weeks, a hard fork will be initiated on July 24. In summary, this means that Loki will no longer support merged mining with any other chain.