Bitcoin Forum

Hello everyone. In order to avoid people calling the Alt coin I am going to release a premine scam, I am taking the initiative and giving a minimum six-week announcement before release. As I get closer, I will divulge exact time of launch, and will have example configs, and all the info you need to have to mine the early blocks (cgminer settings that work best, etc.)

The coin will be Scrypt-based, will have absolutely ZERO premine, and will attempt to counter one of the issues with cryptocurrencies today.

The coin will hold foundations in community input and trust. Due to an early announcement which has, so far, gotten a fair response (5 pages), and further announcements along the development line, it will be quite well announced. As well, I am going to take input, clean it up a bit, make some graphics, and have additional criticism from the community, along with perhaps a vote. While some of the other coins seem to be made for quick profits or weekend projects (nothing wrong with that!), this coin will hopefully hold some value in the economic ideas that went into its creation, in order to balance inflation and deflation, while still allowing for some early adopter profitability.

The coin itself will have a block reward that increases with hashing power. While this doesn't benefit early miners as much as current alt coins, it makes the coin have a more forseeable future. While the details are still sketchy, I plan to program the coin to award the square root of the current difficulty times some convenient constant. For example (subject to change a TON), a block when the total network hashrate is 1MH/s would be worth one coin, however a block when the network hashrate is 2MH/s would be worth around 1.41, and a block when the network hashrate is 10MH/s would be right around 3.3. When hash rate gets to 100MH/s, the block reward is 10 coins per block.

The idea is to make coins have some hope of keeping up with increased adoption. A one-to-one ratio of hash power would cause trouble with pump-n-dump, or hyperinflation of the coin. However, increasing block reward as difficulty increases in a non-linear fashion allows the coin to not be so hard for latecomers to adopt, while still giving early adopters their fair share of earnings.

I am completely open to suggestions, and have barely started on the code itself yet. I would be more than happy to have some suggestions for that "magic constant," as well.

Name suggestions. I need them. Thanks :)

A bit of the explanation to the economics behind the coin:

With a square root reward, the early starting difficulty would not provide significant coinage, so the first hour people would not have a huge advantage.
With the square root reward, ASIC market manipulation is reduced. If ASIC devices are created, if they outpace the network 10:1, they will only increase the block reward by ~3.3 or so. For all of the investment in ASIC hardware, this seems about right.

While it is true that the coin supply per minute would increase over time, so would the user base. If you have a community of 100 people, then $100 in circulation might be enough. However, if you have a community of 10,000 people, they would have to share that $10,000 in the standard Bitcoin model. This causes inflation of the value of each dollar, so each of the 100 people who had on average $1 is now much more rich, as that resource should be $0.01 per person. However, if the 100 person community grew to 10,000 people, but the coinage in circulation was grown to $10,000, the people who were originally in that village don't have anything over the newcommers, as would occur with a linear model. However, if the new 10,000 people village had $3,000, then the dollar would be worth more than it was in the day of the 100 person community, but would still not be as painful to join for late arrivers, and ensures a more fair distribution of resources inside of the community, keeping up production rates to scale in a non-linear fasion with demand has some interesting, yet-to-be-tested economic effects in supply/demand economics, but my personal guess is that the currency will act as if it had a "buffer" against rapid increases and decreases of price, apart from speculation.

One issue that arises is that, while the money supply increases, block mining turns from a "I made the equivalent to a cupcake!" to "I made the equivalent of a new car!?!". This is an interesting side effect, making the block reward less of a job and more of a lottery. However, by the time the block reward is significantly bigger than the starting position, pools will have popped up, and almost all mined blocks will be mined by pools and distributed to users, with a few solominers playing the lottery if they so choose. The same lottery occurs with Bitcoin today, but instead of the number of coins increasing, the value of the coins is increasing at a steady rate, and seems to be currently taking a nap around $115-120.

While the square root may not be the ideal magic value, I feel that it will take the benefits of both sides: reducing inflation while increasing fairness.

I will hold a public poll for the name of the currency in the next week or so. If you have additional suggestions, please enter them in this thread within the next day or two!

Explanation as to why square root:
As computing gets faster, either with faster generations of Graphics Cards (per dollar, or per Watt), or with FPGA/ASIC mining devices, I don't want the supply to explode. It makes sense for the currency to get larger as more people adopt it, but not as hardware evolves to be faster (in my opinion). This leads me to the square root idea: while the coin reward would increase with higher hashing power, the square root acts as a sort of permanent buffer against some of the extreme hashing power that could join the network.

I also had another idea, not sure quite how the implementation would work, but the constant C would go down with increasing block number, in accordance to Moore's law. Basically, it would attempt to keep coins/$ of hardware relatively the same throughout its existence. It would run into a few problems though: ASICs break Moore's law (in the sense that a 2-year development is a 10x or more increase in hashing power), and Moore's law will end at some point, due to the inability of chip manufacturers to make smaller die sizes. It has to end somewhere, some people say 10 years, others say 15-20.

Legality: According to the United States of America Stamp Act, creating your own physical currency is illegal. This currency is digital. The United States has, to some extent, even embraced Bitcoin, in an attempt to tax it and prevent money laundering operations. Bitcoin has blazed a trail of legal and social acceptance. Therefore, the making or use of this coin will not be illegal in the United States. No idea about other countries, I'm not a law expert. :)  

Keeping tabs on this one...

How about StratosCoin / Exocoin / Skycoin ?

All in relation to levels of the atmosphere (or the sky itself) due to the fact that from the way you say it, it just keeps increasing in a "sky is the limit" fashion.\

Honestly think this is getting a bit crazy, with all of these coin releases (although it's quite profitable...) but good luck :P

Congrats you're the next in line to figure out all you have to do is design a coin to make 100k within a week!

Maybe SquaReCoin (SRC) ?

Or RooTCoin (RTC)?

Or SQuareRootcoin (SQR) ?

-MarkM-

RooTCoin sounds like tree root.

No no, first list oodles of them so tons of domains get bought, THEN come up with one based on availability of appropriate domains.

A Better Coin (ABC)

A Better Design (ABD)

Energy Transforming Coin (ETC) ...

-MarkM-

Ugh. All these altcoins are making me dizzy.

SqrtCoin?

SQrtCoin (SQC) ?

(Remember, currency symbols are three characters not two.

Unless you're aiming at XSC ? (The X means worldwide, pretty much.)

-MarkM-

SQRcash.com

SQRbucks.com

Etc. ?

-MarkM-

Will be interesting.
Keep it up.

Yes, SQrtCoin (SQC) although I'd like the q to stay lowercase in the name (v not that it's my say :P )

Just ^Coin.  8)

http://www.checkdomain.com/cgi-bin/checkdomain.pl?domain=sqrtcoin.com Seems to be available....For now...


As much as I love this, I'm pretty sure that'd be invalid :P Maybe on a logo?

FUDcoin

How about joincoin?

"The coin itself will have a block reward that increases with hashing power. While this doesn't benefit early miners as much as current alt coins, it makes the coin have a more forseeable future. While the details are still sketchy, I plan to program the coin to award the square root of the current difficulty times some convenient constant. For example (subject to change a TON), a block when the total network hashrate is 1MH/s would be worth one coin, however a block when the network hashrate is 2MH/s would be worth around 1.41, and a block when the network hashrate is 10MH/s would be right around 3.3. When hash rate gets to 100MH/s, the block reward is 10 coins per block."


Thats great! i was just smh at the new alt coin early adoption pump n dumps happening.

Why not just keep the reward constant 1mh = 1 coin 2 mhash = 2 10=10 and 100=100? its an interesting twist though. that twist seems like it could be exploited by monitoring network hash rate, and using a big pool to be able to adjust to current network rate to get block vaule? i think 1:1 and 2:2 and 100:100 would be a good route. as to not encourage certain network behaviors.

Watching.

Suggestion: RocketCoin, they'll love it in the speculation forums.

the best name is ChikunCoin! CHC

this is actualy an interesting experiment. some new idea of inflacoin.
just dont forget to change difficulty adjustment to PPC version.

I'd just be careful about how high the coin generation can get... if the hash rate ever gets to high due to (for example) some sort of ASIC type hyper effienct miner, the coin would be subject to run away inflation... Not sure of the solution to that, but hey, there's 6 weeks

what! really? you guys don't see he's joking?

Someone really, really needs to make a coin called "altcoin"

Oh capitalising the letters in the name that make the symbol is just osmething I do to try to keep people aware of what the symbol is. Most folk only capitalise the initial letter, so it'd be Sqrtcoin when they write it.

-MarkM-

WLC - WorldCoin
PCC - PeaceCoin
RDC - RedCoin
BLC - BlueCoin
UVC - UniversalCoin
ELC - EliteCoin

ZOC - ZRC - ZeroCoin

Donation's gladly accepted if you select my names - BTC 1FwsACfRyaH6fQhCz6BcQa7oWwyEEKueCP - lol

Hah, 100k what?  USD, BBQcoin, TRC, FTC...?


amen brother!


That would really screw with my conversations!

Yeah, gonna try to tie in some difficulty adjustment scheme from PPC, might make minor changes.


Gonna add that point to op, that is another reason for the sqrt(hashRate)*C
Basically, if ASICs hit for Scrypt, the coin reward would go up, and naturally over time as hardware like GPUs gets faster the block reward will go up as well, but the square root means at some point it will reach a maturity point where large amounts of added hashing power have little affect on the reward.

Thanks for everyone's suggestions!

Idea, One could have this sqrt growth until the network reaches a "hash rate of stability" Where the coin reward stops growing, and would remain there. From that point on, it could take on a Bitcoin style halving ritual up to a certain amount of coins (relative to the point at which it reaches "stability", not the initial zero point)

I like this idea, problem is determining the magic numbers . . .

So many coins these days. You're going to have to be very creative to make this stick.

lol, do you really?

Well, I'd try to think about what would determine "stable". Some sort of a point at which you could easily say that the coin is well supported and will continue to be mined at a somewhat regular rate. I'd cross compare with other coins, but I suppose that's for later time :P

Just as a random suggeston, how about a maximum of 256 coins per block (square that for a hash rate around 65GHs?) (256^2/1000 = Hashrate in KHs)

This seems like a good enough effect to not need a block size cap. because as u said, hardware will get much faster. soon a teraflop card will be old news.

Then from that point on, moving up towards X value of coins, (let's say 40 million)

So the total coins in circulation would be about 40 million + Whatever was made before stability

I guess you have a point... but I'd think that once this stability is reached, the coin would take on a bitcoin style difficulty management system, which would just make the hashes harder when some guy comes in with a AMD Radeon 9001X99 Super-Duper-Card GPU @ 999999999 PHs

I think that having the supply tied by the square root is a good idea. A even better idea is to have no cap at all on coins.

After 20-50 years even though people can still mine and get a lot of coins, the inflation will be really small because the amount of coins in existence will always increase against the amount of coins mined. Because of this there is really no reason to cap or slow down the supply after a set amount of years. The volume of coins over the new coins will always increase thus decreasing inflation.

After a hundreds years inflation would be 0.0001% for example, but even this would be enough to keep people interested.

I really like this idea. If you add a cap then I think you will miss out on something important.

I can see this causing a problem with value. as more miners come on it could case a surplus in coins. Having more supply than demand could cause a problem with coin valuation. IMHO I think it would be a good idea to put a hard cap on the number of coins possible no matter how high the hash rate gets.

My name suggestion: ROOTcoin a play on the square root calculation you are using. You could have the graphic on the coin be a tree showing its roots.

=> ZenCoin

I'm in. Supporting the coin as the designer. let me know if you need logo designed.
Sample work - I converted Feathercoin logo to vector lately:
http://clipartstockphoto.com/images/Feathercoin-compare.png

You won't need to make hashes harder because the amount of coins in circulation will increase so much all the new minted coins will eventually add little to the overall supply.

coins that exist / minted coins

The coins that exist will always go up and up where minted coins will not go up as fast especially after many years. This will act as a natural cap and reduce inflation. After 20-40 years inflation will be less then PPCoin thus making a higher demand for existing coins.

This model could be a true solution. No need to program in reward halfs. Let the 1 rule take care of everything naturally.

While the forward thinking is awesome, don't you think people would get kind of weirded out if they used to mine with 100 SQC (yes, I'm using my own name) rewards and suddenly everyone with a CPU is getting 1000 SQR a block?


I don't think perminant exponential reward growth would help the coin to be adopted and used to that it's relevent for that long, even if it's mathematically ideal

Hey Vorsholk I like your idea :)

I actually posted a similar one a few days ago https://bitcointalk.org/index.php?topic=191470
It's a little different but there are some similarities, especially the pre-mine prevention part ;)

plus, the "always becoming worth less" model of no caps and an ever increasing rate doesn't exactly inspire confidence in buyers, retailers, exchanges, anyone who expects the coin to retain some sort of value.

How about HyperCoin?

..from mathematical hyperbola https://en.wikipedia.org/wiki/Hyperbola :)

Thanks for all the ideas, leaning towards something without the word "coin" in the name, but not ruling anything out at this point. :)

I'll respond to some of the interesting issues brought up sometime tomorrow, after some sleep :)

Tomorrow I'm gonna make a few graphs and create some examples, propose some possible economic ideas an expected outcomes, etc. to attempt to summarize some of the constructive thinking going on in this thread, as well as alleviate some of the confusion associated with the idea of an increasing block reward.

If my math isn't failing me right now, it would be an exponential block reward, but not in the way people usually use the word "exponential" as it would not continue to increase at an ever increasing rate. until tomorrow, if you want to look up "square root graph" it will give you a basic idea of what the network block reward would look like over time as the hashrate increases.

I think it might be interesting to, in my original post, summarize some of the ideas people are proposing (limited coin mints, unlimited coin supply, a max-cap for block reward (say, 256 was mentioned), however not having a max cap on actual possible supply, etc. And then have a new thread where people can criticize the ideas, give input, perhaps some insight on magic constants, etc. Each idea has its own benefits, perhaps some hybrid system could be devised. (Limited max block reward, but max block reward increases with time? Limited maximum coins, but approaching limit coin would decrease with a square root function, in such a way that in the very middle of the time between launch and last generated coin would be maximum value, etc.) Not sure about the technical side of implementing some of this, but of course if the idea is good enough a way will be found :).

more speculation - this coins value could be closely tied to price of electricity and availability of power efficient hardware, caused by the 1 hash = 1 coin. --- more closely tied then current coins that is

low power fpga / asic obviously the big question, with all coins...

that could be a good thing because power will most likely always keep going up in price

Well, good to see that we're actually trying something different here :P You've totally captured my interest. Looking forward to it

What if we one day finally get energy to become free? (Like free wifi internet in Singapore, for example).

The rate of increase is via square root, then the rate won't increase as much at the hash rate increases. This will mean when the hash rate is a thousand times higher the rate may only be 200 times higher, or something like that.

And because the rate cannot increase without bounds this will act as a natural dampener. Eventually the amount of coins will dwarf the minting rate. Eventually the minting rate will be so small that the currency would have the same deflation effects as Bitcoin, just not as pronounced.

I like Squirt coin ! - do i have to give my credit card details but to get it?

: D

If you used to get 100 per block and now its 1000 per block, that means 40 times more hashing power was added to the network. This doesn't seem to bad does it?
Remember 10 times hashing power will not get 1000 per block because its by the square root, so you need a lot more power to get to 1000 per block.

Rootcoin

Let me rephrase that. It's not the changing reward that bothers me, it's the huge drop in the curreny's buying power that would come with the application of this system beyond when it's unnecessary, aka the early stages. If 10x reductions in buying power kept happening, people would stop using the coin.

Nice work with it!

I like your idea. How about the name Plaincoin? [PLC]

Ah ok I see what you mean.

Those 10x reductions in buying power require at least a exponential increase in computing power. So for a 10 times reduction in value the amount of hashing power must increase to the power of 2. So the network would reach a equilibrium where the coins lose value a rate that is slower by the square of the network hash rate.

So for your coins to be worth less, the currency must as a whole be much more attractive. So you can't just sit on them and get rich but they are holding value relative to network hash rate none the less.

If people decided that the coins were worthless, then the network would not have a increase in power because people wouldn't care as much meaning your coins would gain in value again because more miners have left.

This is the reality for a early adopter: Mine thousands of coins in the first month and expect to get rich. The early adopter does not get rich because now many more people use the currency. However if the adopter kept mining for a few years, those exponential increases in network hash rate have to slow down because its physically impossible to keep increasing exponentially.

(remember a exponential increase in hash power does NOT result in a exponential increase of minting, its far less)

The only time a coin increases exponential hash power is in the first months which is considered a pre-mine by most accounts. This coin would be more equal in that 10% of all coins ever to exist would not be created in the first week.

If you wanna strike rich with this coin you need to mine throughout its first few years until the minting starts to pale in comparison to the overall supply of coins.


Remember the coins cannot constantly keep losing 10% of their value, that would require a exponential increase each time in hash power. Look at Bitcoin, Bitcoins growth in network power is at most barely 30% up each time, most of the time its around 10% increase. If this coin was at the current size of Bitcoin in terms of hash power then your coins would be very very stable. A 30% increase DOES NOT means a 30% increase in coin supply but just 5.4% increase.

And as I would predict, after 10 years the increase in supply would start to slow down in relation to the overall supply. Does this mean early adopters cannot just mine a million coins and sit for 3 years and then just sell them and be a millionaire? Yes, I don't see this as a problem. If you do then your just chasing a get rich quick scheme which is the moto of all the Alternative coins at the moment. Even Bitcoin.

Survival of the fittest, if someone comes to market with a coin that really changes things and makes for a better system than Bitcoin, it would trash all the alternatives. But that's to be expected. If your alternative coin is at risk because of new upcoming coins then you have to ask: what did your coin bring to the table in the first place?

If FTC or CNC are at risk of losing value just because of another clone, then what merit did they really have?

Take Litecoin, Litecoin moves based on Bitcoin and no other Alternative coin is causing it risk of ruin, so there you have a somewhat trusted and stable coin in comparison to FTC and CNC. FTC is already worth as much as a PPCoin so if its value does drop don't be surprised.

Then again PPCoin has its own issues. Yeah its innovative but POS has bugs and the check pointing is still putting a lot of people off.

I really don't mind all the new alternative coins, we can watch for the ones that really offer something better. (Offering something new is not really the goal, well it shouldn't be, something better should be the goal)

Basecoin

Parabucks PRB (from parabola)
ExponentialGreen EXG (like exponential growth, green dollars) I kinda like this one especially the abbreviation.

My names without "coin." Wil be keeping eye on this.

One with coin
Quadraticoin QDC

If you could somehow make fast(er) confirmations one of the improvements in your coin, I think it'd be great. 1-hour confirmation of Bitcoin and 15-minute of Litecoin is a problem for retail. It is a fine line to balance, number of confirmations vs. risk of double spends, but there's a need for it.

Ripple does achieve near-instantaneous confirmations, but only because they've put lots of time and effort in designing the protocol and running Ripple nodes that transmit trust.

You want a commercial name

nutcoin with the walnut wallet

Respect for doing this the right way.

Ditto. Feels way less scammy all around already.

This is brilliant - a coin that is addressing a real problem and a sensible solution to one of the big problems that makes it difficult to get a coin adopted once its in the wild.

As for the name, how about looking at the best source of computer names in the known world, Monty Python?

In the Life of Brian, there was a market scene where Brian had to haggle with a market trader, and their currency was the Shekel.

Why not have a Metashekel for this new currency?

Meta being data, and Shekel being currency.

A single unit would therefore be a Shekelbit, and Shekelbyte for a quarter of a Metashekel?

I've not bought the domain name yet, because that would be unethical, however, I do think its a good name - Any feedback?


Edit: just spotted that the Shekel is the current currency of Israel, which I guess is a problem for a bunch of people on here! Oh well, back to the drawing board!

Since 1980, the shekel has been the currency of the modern state of Israel.

They might have an issue with using it for this project - although its a good idea.

Faircoin perhaps?

Fair implies equality, but in older usage it also means beautiful, like a "fair maiden..."

doestheworldneedyetanotheraltcoin

What's the coin limit?

Luckybit brought up some excellent comments in another thread that is worth considering. If you can make it seem more valuable than the Bitcoin and given the negative press that they are getting, we can use this opportunity and seize the market

Basically, while the currency would be more common, the rise due to faster hardware would be somewhat minimal while the rise due to people investing more money in hardware would be the major thing bringing the reward "up", if you will. In essence, that means more time, effort, and money is backing the system, and so each coin would, in theory, be worth more.

All the variables of the currency are up in the air, as I get closer to launch I'll have some polls and see what the community wants as far as block time targets :)
I agree though, definitely under 10 minutes, probably under 2-3 tbh. One of the main things that one must balance with block reward time is how fast that block can propagate the network.  Since the internet has very low latency now adays (blocks get from US to Europe in a matter of seconds), having a coin with 1-2 minute block targets means that people solo mining will only be wasting around 3% at most of their hashing time on old blocks, assuming they have some reasonable level of internet.

Following this one. Interesting.

If you truly want to make a long-term coin, I would suggest a few things:

• Changing the POW algorithm.
  
  Changing the POW algo gives the coin the ability to grab its own long term miner share. Make it minable only by CPUs.  Take a look at Hokkaido (http://eprint.iacr.org/2005/356.pdf) or MBound.
  
  
• Also, consider a Bell curve (http://en.wikipedia.org/wiki/The_Bell_Curve) for generation so that after 5-6 years your generation rate starts dropping until there is a fixed inflation of 2-3% per year forever. This will actually make the coin useful in a future economy, and is on par with the inflation of the world population and even the mining of precious metals such as gold.
  
  
• I would also suggest having at most 2 decimals, if Bitcoin started at Satoshi levels instead of Bitcoin when pegged on exchanges, it would've been much more psychologically attractive to buyers. $1 for 980k ish Satoshi sounds better than $100 for 1 Bitcoin for the "terminally stupid." (http://www.reddit.com/r/Bitcoin/comments/1dkbil/just_a_suggestion_for_the_long_term_survival_of/).
  
  Since value will obviously be small to begin with, you could take the example of Ripple, where things are traded for 100K Ripples for example, rather than the much more confusing .001 BTC or 1mBTC, with the added pressure of this having to change again to uBTC and Satoshi at a further point in time when the value becomes too great.
  
  Say you tried to mimic Bitcoin which has 2,100,000,000,000,000 total units, your block reward could start at 1 billion (equivalent of 1 in 21,000,000 units) and increase from there. Denominating trades in 1 billion currency units is not unheard of, obviously, and will lead to a lot less problems down the road.
  
  
• Not naming it -coin. 'Ripple' sounds much better than 'bitcoin' and is definitely more SciFi/futureish than -coin. It will also help differentiate the new currency among the plethora of alts.

Will it be based off bitblock? That would be awesome.
IMHO it would be the best coin if it had a better starting difficulty and/or this

The reasoning say this is because, while the market will control it's value, I don't really think that the design of the currency should promote decimal shift level changes in value. I know that the value will scale, but I feel people will be psychologically phased if the value shifts like that, as some were with bitcoin.

Cordo makes a good point with the decimal place limit, there's a huge mental thing when you paying $50 for a faction of a bitcoin...

Although I'd say just having more, less value able coins would be better than a hard lock of decimal points

had for a non coin name, how about Stratos?

I like Rootcoin the most; maybe Rootcash, to break the "coin" paradigm? :)

Nice, will follow this post

Faircoin?
Sixweekcoin?

Lol, I think when he said "no coin", he meant no suffix to it's name at all, but I do like rootcoin :P

I like the sound of Squarecoin. It'd be an interesting contradiction of the common concept of a physical round coin. I imagine you could come up with a cool logo that looks like a classic coin... but square. It also alludes to the unique property of the coin, which anyone with basic math comprehension can understand and appreciate.

tl;dr +1 for the name Squarecoin

Short, Simple, and doesn't have a silly feel to it. +1 from me

.tumblr.com

http://xkcd.com/1025/

+1

Looking forward to this one !

Also it is NICE to see an announcement gaining momentum (and not an announcement in some place deeper/darker) , weeks before coin is released.

Gain the trust and interest of the community, and I'm sure this coin will succeed.

Seems interesting.

How much dev work has been done already?

Also, do you have a fixed date for the launch?

Thanks.

How about

Acoin

(anothercoin)

sounds like acorn!

For dev work, it's mostly been theoretical, plotting numbers, comparing to market trends. I have started to crack on the source code, but haven't done much there.

Fixed date: nope, when its ready! I want this coin to be built from community ideas, and that might take longer than six weeks to accomplish, depending on what happens :) I have a tentative date for some time in Mid June . . .

Finally an alt coin with new ideas that actually addresses issues of the current ones. Looking forward to see what you're coming up with!

Looks good!

Noticed a few other potential legal hurdles, looking into them. If I can't figure out a way to do this coin in the grace of US law I won't be doing it. Sorry :(

Idea's currently open to anyone else who wants to make it though... :)

No way Jose...

what kind of issues? Are they specific to the type of coin you are making.. or just altcoins in general?

Fully support this. Let me know if you need anything during the development process.

What hurdles? If it's about writing the client you're just writing software. If it's about mining from a legal perspective your coin won't do anything different then bitcoin or any of the alts?

Wasn't one of the biggest things from the bit coin bubble it's acceptance by US authorities? They shouldn't target an altcoin for any reason.

Also could you explain these?

The main one simply is that it is a currency that, if you will, has an increased usage potential for money laundering. I know the other Cryptos do the same, I just don't know the legality of being the creator of such a currency . . .

+1

P2Poolo

Actually, I'm pretty sure it's not officially recognized as a currency atm...

True, in that sense it would be more of a network, system, or service that allows for money laundering. :(

Well, that's not the point of it...and I'm sure there's at least 1 person that's not think headed enough to not see this

Plus, what exactly would the US government do to you?

1. The creator CAN't take down the network. P2P networks don't work like that
2. It's open source, some guy in X country outside of US juristiction would just fork the code and take up development
3. If the US government actually wanted to do something for the first time in years, why would they go after a small altcoin vs Big Daddy (Bitcoin)

Overall, I don't see how you'd be held to it in any way

Not really, the law of supply and demand will naturally adjust it to the market's value.
More miners = more coins => less $ per coin => less profitable => Less Miners => more $ per coin => more profitable => More miners again, and so on...

Yes. No xxx-'coin' anymore ...

I suggest globe. Or something else that could be the name of the money in a cryptomancer scifi novel ...

Any word on your legal worries?

TitCoin!! For pr0n sites ONLY!!

TtC  :o

SCR  -  SquareCredit

If you've not even started coding yet, I would remove any mention of any release date - don't want to see you do a BFL on us.....


Regarding legal hurdles, I think the currency itself is fine, the legal hurdles are normally set up round the exchanges and the points where it interacts with fiat. If push came to shove, with regards to aiding money laundering, it could be argued that the privacy offered by the system is there as a by product of the security provided through the blockchain data structure.

Is this a new coin ?

I don't know if it makes sense to premine 6 weeks

Yes and No, that's the problem with the alt-coins, any kid from 4chan starts his newbiecoin and then it goes nowhere,
no decent homepage
no services (wallets?)
And the MOST important:
no update of the client if there's a bug

if you want something at the level of bitcoin you really need some programmers backing it.

Not the usuall troll from some x country that don't even have a verified paypal account and can't buy a domain...

So you need some $ backing power, you could recover it later by charging fees on the services/webs you create or with ads.
but if there's no services, it will be no different, even if you come with the perfect algorithm that makes your coin
have a constant price against bitcoin that makes it perfect for micropayments.

I guess the legal issue revolve around the responsibility of ownership as suggested in some of the early US Gov papers a few weeks ago?

Maybe its time to forget calling it a currency, and start calling it a voucher?  Something with no real value, except to use in exchange for goods from other members of the club?

I know that sounds clumsy, but if the worry is how governments are going to deal with altcoins, this could be a good opportunity to revisit the whole definition of what crypto currency is about, and try and take the heat off the whole community?

This is where the removal of the term x coin is a good thing, and lets call it something like a universal voucher?

If we stop pretending that this is the start of a war against the dollar, and really just a way to buy pizza without using Paypal, we might get some more mainstream support?

just my 0.002 BTC!
:)

I have looked into the legal hurdles, mostly involving issues with money laundering, and have decided that this project would not be illegal, and will therefore  be put back onto track.

I of course reserve the right to stop the project again if other issues turn up, but basically it does not seem to be illegal by any current US law. There are laws preventing the creation of a system for money laundering, but the purpose of the coin is NOT to launder money, and arguably cash/printed money could be considered a system with equivalent possibilities for money laundering.

Additionally, any system in which a commodity, currency, or barter is used could be considered a way to launder money, and since money launderers would have to purposely take steps to make the system work for money laundering (mixing services, taint analysis, etc.), it can be said that the system/network itself is not aimed at money laundering.

Therefore, the project is back on, and scheduled for late June. Thanks!! :)

A bit of the explanation to the economics behind the coin (also in OP):

With a square root reward, the early starting difficulty would not provide significant coinage, so the first hour people would not have a huge advantage.
With the square root reward, ASIC market manipulation is reduced. If ASIC devices are created, if they outpace the network 10:1, they will only increase the block reward by ~3.3 or so. For all of the investment in ASIC hardware, this seems about right.

While it is true that the coin supply per minute would increase over time, so would the user base. If you have a community of 100 people, then $100 in circulation might be enough. However, if you have a community of 10,000 people, they would have to share that $10,000 in the standard Bitcoin model. This causes inflation of the value of each dollar, so each of the 100 people who had on average $1 is now much more rich, as that resource should be $0.01 per person. However, if the 100 person community grew to 10,000 people, but the coinage in circulation was grown to $10,000, the people who were originally in that village don't have anything over the newcommers, as would occur with a linear model. However, if the new 10,000 people village had $3,000, then the dollar would be worth more than it was in the day of the 100 person community, but would still not be as painful to join for late arrivers, and ensures a more fair distribution of resources inside of the community, keeping up production rates to scale in a non-linear fasion with demand has some interesting, yet-to-be-tested economic effects in supply/demand economics, but my personal guess is that the currency will act as if it had a "buffer" against rapid increases and decreases of price, apart from speculation.

One issue that arises is that, while the money supply increases, block mining turns from a "I made the equivalent to a cupcake!" to "I made the equivalent of a new car!?!". This is an interesting side effect, making the block reward less of a job and more of a lottery. However, by the time the block reward is significantly bigger than the starting position, pools will have popped up, and almost all mined blocks will be mined by pools and distributed to users, with a few solominers playing the lottery if they so choose. The same lottery occurs with Bitcoin today, but instead of the number of coins increasing, the value of the coins is increasing at a steady rate, and seems to be currently taking a nap around $115-120.

While the square root may not be the ideal magic value, I feel that it will take the benefits of both sides: reducing inflation while increasing fairness.

I will hold a public poll for the name of the currency in the next week or so. If you have additional suggestions, please enter them in this thread within the next day or two!

Gonna watch on this one  :o

Definitely!

Great to see that you have figured out the legal issues. I would also think that Mens Rea would apply to this situation, if it were to come up in a court of law, i.e., one's intent determines whether a crime has been committed. Since your intent is not to create a money-laundering operation, you likely would not be held liable for such.

I'm not a lawyer, so don't take any of what I just said as gospel. I'm not going down with you if the G-Man come-a-knockin' at your door. :)

Haha, I'm with you in ideology. The coin is just like a knife or a gun. If I make them and do my best to make them safe and used for their intended purpose and someone does something bad with it, it isn't on my shoulders. The coin's intention is to be a currency used to exchange goods for a credit in a central-faith system (currency backed by a faith by the users of the currency, much like the US Dollar), and a person has to take additional steps to launder money with it.

Cool idea, let me know if you wnt help.

So.... This hasn't been posted in for about 6 months. What ever happened to it?

about 4 million shit coins thats what happened

Yeah. I figured that out pretty quick.

Yeah, basically once the dust has settled with all the random coins that only act to confuse new users, I might take another look at this project. If someone else wants to adopt it, go for it! :)