Is Kaspa this profitable?

Kaspa mining uses ASICs on a fast BlockDAG network with 17 KAS block rewards, but profitability depends on hardware efficiency, electricity costs, and fluctuating coin prices.

Jul 24, 2025 at 09:00 pm

Understanding Kaspa and Its Mining Mechanism

Kaspa is a high-performance blockchain that leverages BlockDAG (Directed Acyclic Graph) technology, enabling it to achieve extremely fast block generation times—down to one block per second. This structure allows Kaspa to process transactions at a much higher throughput compared to traditional blockchains like Bitcoin. The consensus mechanism used in Kaspa is Proof of Work (PoW), which means mining plays a central role in securing the network and validating transactions.

Mining on the Kaspa network involves nodes competing to solve cryptographic puzzles using computational power. The algorithm employed is kHeavyHash, a variant of the SHA-256 hashing function optimized for ASIC resistance while still allowing efficient mining with appropriate hardware. Because of the rapid block interval, miners receive more frequent opportunities to earn block rewards, which currently stand at 17 KAS per block. This high block frequency increases the chance of earning rewards but also demands consistent performance from mining hardware.

Hardware Requirements and Efficiency

To assess whether Kaspa mining is profitable, one must consider the hardware used. Currently, the most effective way to mine Kaspa is through ASIC miners specifically designed for the kHeavyHash algorithm. Popular models include the Innosilicon K1, GWI KW3, and iPollo V1 Mini, each offering different hashrates and power consumption levels.

• Innosilicon K1: Delivers approximately 1.2 TH/s with a power draw of around 1800W
• GWI KW3: Offers about 1.6 TH/s while consuming 2200W
• iPollo V1 Mini: Provides 1.0 TH/s at a lower power usage of 1400W

Efficiency is measured in joules per terahash (J/TH), and lower values indicate better performance. For instance, a miner operating at 1.4 J/TH is more efficient than one at 1.8 J/TH. Electricity cost is a critical factor—regions with low electricity rates (below $0.10/kWh) significantly improve potential profitability. Miners in areas with high electricity costs may find operations unprofitable unless using highly efficient hardware.

Calculating Profitability: Key Metrics

Profitability in Kaspa mining depends on several variables that must be evaluated together:

• Current KAS price in USD: Fluctuates based on market demand; must be checked in real time
• Network hashrate: As total network power increases, individual miner share of rewards decreases
• Block reward: Fixed at 17 KAS per block, but difficulty adjusts dynamically
• Mining pool fees: Typically range from 0.5% to 2%, reducing net earnings
• Hardware cost: Upfront investment in ASICs must be amortized over time
• Power cost: Calculated as (hashrate efficiency in J/TH × daily operating hours × electricity rate)

For example, a miner with 1.2 TH/s efficiency at 1.5 J/TH running 24/7 in a region with $0.08/kWh electricity will consume roughly 43.2 kWh per day. At current network difficulty and KAS price (~$0.12 as of recent data), such a miner might earn approximately 80–100 KAS per day. After deducting electricity and pool fees, daily profit could range between $6 and $9. Over time, this determines the payback period for the initial hardware investment.

Choosing the Right Mining Pool

Joining a reliable mining pool is essential for consistent income. Solo mining is impractical due to the high network hashrate. Top Kaspa mining pools include:

• Flypool (kasp.flypool.org): Known for low fees (0.9%) and stable payouts
• 2Miners (2miners.com): Offers 1% fee and supports direct payouts to exchanges
• KaspaPool (kaspa-pool.org): Transparent stats and 1.5% fee, with real-time dashboard
• Prohashing (prohashing.com): Allows mining multiple coins simultaneously, with 1.9% fee

When configuring your ASIC, you must input the pool URL, port, worker name, and password. For Flypool, settings might look like:

• Pool URL: stratum+tcp://kasp.flypool.org:10050
• Worker: your_wallet_address.worker1
• Password: x

Ensure your network allows outbound connections on the specified port and that your miner firmware supports Stratum V1 or V2 protocols. Some pools offer PPLNS (Pay Per Last N Shares) reward systems, which favor consistent contributors over time.

Risks and Ongoing Costs

Despite potential earnings, Kaspa mining carries inherent risks. The volatility of KAS price can drastically affect revenue. A drop from $0.15 to $0.08 halves mining income overnight. Additionally, network hashrate growth can reduce individual profitability even if hardware performance remains constant.

Ongoing costs include:

• Electricity: The largest recurring expense
• Cooling and ventilation: High-power ASICs generate substantial heat
• Internet stability: Mining requires uninterrupted connectivity
• Hardware maintenance: Fans, power supplies, and chips may fail over time
• Firmware updates: Necessary to maintain compatibility and efficiency

Overheating or inadequate power supply can lead to reduced hashrate or hardware damage. It is advisable to monitor temperature and uptime using tools like Awesome Miner or MinerStat. Some miners deploy outdoor enclosures with fans to manage heat in warmer climates.

Getting Started: Step-by-Step Setup

To begin mining Kaspa, follow these steps carefully:

• Acquire a compatible ASIC miner and ensure it’s in working condition
• Obtain a Kaspa wallet address by downloading the official Kaspa wallet (Qtum-based) or using a trusted software wallet
• Connect the ASIC to power and network using appropriate cables and a stable Ethernet connection
• Access the miner’s web interface via its IP address in a browser
• Enter pool details under the mining configuration section
• Save settings and restart the miner
• Monitor output through the miner’s dashboard or the pool’s website using your worker name

Verify that the miner reports accepted shares and begins receiving payouts after the pool’s minimum threshold is reached (e.g., 1 KAS for Flypool). Use the pool’s explorer to confirm block contributions and reward history.

Frequently Asked Questions

Can I mine Kaspa with a GPU?
No, GPU mining is not viable for Kaspa due to the dominance of ASICs and the design of the kHeavyHash algorithm. GPUs cannot compete with ASIC hashrates and efficiency, resulting in negative returns after electricity costs.

How often are rewards paid out?

Payout frequency depends on the pool. Flypool pays out when your balance reaches 1 KAS, which for a 1 TH/s miner may occur daily. PPLNS pools may delay payouts until a certain share window is cleared.

Does Kaspa have a maximum supply?

Yes, Kaspa has a maximum supply of 28.7 billion KAS, with block rewards decreasing over time through a halving mechanism every 4 years. Current emission is high to encourage network participation.

What happens if my miner overheats?

Overheating triggers thermal throttling, reducing hashrate to prevent damage. In severe cases, the miner may shut down automatically. Ensure proper airflow, clean filters regularly, and avoid enclosing the miner in tight spaces.