Bitcoin Forum

Hello,

I've been working on a new currency for a while now.

The idea is that because we can create very accurate decentralized IDs for our users, we can give new users their share of a new currency as we create it. Some work is involved with this creation process, so they earn it in exchange.

The potential issue is will new users claim their coins, then dump them on the market and walk away meaning that this process will cause heavy inflation. My argument is that we still have a per user value, which should rise with time due to increasing network effect and the more people they can use their money with. And as long as the percentage of people dumping, percentage of people using it as a currency, and percentage of people investing remains approximately the same, this should actually lead to more stable prices but gradually drift upward

I would love to discuss this with some economists.

Any thoughts?

How do you prevent a person from claiming coins multiple times?

OK I understand your idea.
In fact I don't think it's a great one ^^'

Here is the reason:
Your idea is VERY similar to any current currency ok? I mean globally you have only one difference which would be: anyone new gets a free load of coins.
Then... Your only difference with another currency is that people don't have to invest anything to enter your network...
Then... Your difference is to say "you don't need any value to possess my currency"
So... you're not exactly helping your currency to gain any value xD
And no one would pay for a free currency.

It might have some sense but you need other innovative processes here, not just the "it's free folks" idea.

You say that some work will be involved in the creation process.
What kind of work?Mining,doing small tasks or something different?
If the people will have to work to get those coins,they aren`t free coins,which is good.
I`m pretty sure that 90% of the people will sell those coins for other crypto or just fiat money
because they can`t spend them for anything else.
 

If you are giving "free" coins to users, then there will be a tendency to dump. If the work involved in creating a new decentralized ID is too tedious, then you will not get many new users. If it is not, then you will get new users but there will be a tendency to dump. It is a tough trade off.

Actually, I think there would be less tendency for investors to dump...if they get the coins for free. There's no investment to seek an ROI on immediately.

We shouldn't be discouraging anyone from pursuing a new project here.

To the OP, if you're giving the coins away for free as part of the ICO, what price will you (arbitrarily) choose to set the starting value for each coin? To prevent an early crash you could issue coins with "value to be set by secondary market" and the work with an exchange to facilitate and initiate the start of secondary trading...at that point the price is set based on supply and demand trading at that moment. In theory the price would start low and that rise as more secondary buyers exist, therefore there's no (or less) chance of a major crash right out of the gate. The benefit for the exchange is the spread they collect off making a market for each transaction.

Thoughts?

I'm not familiar with the whole coin creation process but I'll butt in anyway. What is easily obtainable is not given much value. This is true in many things, from games to relationships, etc. I just hope that you're giving it away cheaply only for early adopters and even then they should work a bit for it.

Once it has gone public though, how do you intend for people to obtain more of the coins? Do they mine it like BTC or do they do some captcha like some alts I'm seeing?

I'm also curious about the variable supply. Does the limit of the maximum supply of coins only rise up with new users or there would be other variables. I'm assuming that unlike a central bank, you won't be reducing the supply.

The only catch is if you are capable of convincing few famous business to adopt your coins and need to pump your coin time to time then probably you may have a successful altcoin. There were coins with real time amazing concepts but failed due to lack of financial support to pump time to time similarly there are history of mere jokes survive till date.

I like your ideas of share for new users and decentralized IDs. If you are able to link these two, you may prevent duplicate claim of free share which may help the project to succeed.

Every coin that is given for free to users just for signing up would very likely be dumped onto whatever exchanges they can.

Many people in the signature campaigns for those coins do that. The reason they do that is because they know these coins aren't going anywhere. 99% of all alt coins don't go anywhere and aren't worth anything. People know that to hold onto these altcoins is asking for a devaluation because they will be dumped. Look at any coins that came out in the last few years and you can see the devaluations.