Bitcoin Forum

Quick Links

• Web Page (https://alloycoin.com)
• Bounty (https://alloycoin.com/bounty/home)
• White Paper (https://alloycoin.com/static/AlloyWhitePaper.pdf)
• Team (https://alloycoin.com/#team)
• Timeline (https://alloycoin.com/#timeline)
• Slack (https://alloypublic.slack.com/)
• Facebook (https://www.facebook.com/alloyreserve)
• Twitter (https://www.twitter.com/alloyreserve)
• support@alloycoin.com

What Is AlloyCoin And Why Does It Matter?
You may be wondering what AlloyCoin is and why it matters. Here’s why in one word… Volatility.

AlloyCoin is designed to solve the problem of price volatility. No one doubts that for something that’s supposed to function as a currency, cryptocurrencies are way too volatile. Current cryptocurrencies are better at being subjected to units of value than they are at being them. Sounds like there’s an easy solution, right? Just make their value constant - like Tether. Unfortunately, it’s not that simple and Tether has been having... some problems (https://medium.com/@bitfinexed/the-mystery-of-the-bitfinex-tether-bank-and-why-this-is-suspicious-a8a6407a1241). See, while price volatility is a problem when used in pricing goods and services, speculators and day traders make money from that volatility. And the cryptocurrency industry practically runs on speculation. So there are two sides to the issue of cryptocurrency volatility: the speculative side where cryptocurrencies are an investment and the pragmatic side where coins have utility as a unit of value…

How can you eliminate volatility without eliminating the prospect for gains?
Congrats! You just identified why we need AlloyCoin and we couldn't have said it better ourselves. ;) Afterall, if the price is perfectly constant, what incentive do investors have in buying it?

AlloyCoin is a cryptocurrency with a price floor -  it's like a built in insurance policy. AlloyCoin works alongside its own pool of assets called Alloy Reserve. Initially, these assets are an index of the top cryptocurrencies, but the long term plan is for these assets to include traditional assets like: gold, stocks and bonds. By creating an index of other cryptocurrencies, we can effectively alloy the market's performance so that AlloyCoin's price-floor becomes their weighted average. That mixture of assets is where AlloyCoin gets its name.



Can it still fail?
Sure, but it would require the simultaneous failure of every asset held by Alloy Reserve. In other words, before it fails, the entire industry would have to collapse. Once Alloy Reserve introduces conventional assets like stocks and bonds, that scenario should become less likely.

Ultimately, the goal of Alloy Reserve is to try and establish a minimum value for AlloyCoin called a buyback price. If the market value drops below the buyback price, any AlloyCoin holder can sell their coin back to Alloy Reserve and they’ll...well.. buyback your coin at that price.

AlloyCoin seeks to solve volatility because its buyback price is determined by the growth of Alloy Reserve’s assets and the market price is determined by speculators. In a way, you could say AlloyCoin is valuable by design, not only by demand.

When the assets Alloy Reserve owns grow beyond what is needed to maintain the buyback price, that growth is paid out to nearly all AlloyCoin wallets. Meaning, you can earn AlloyCoin just by owning AlloyCoin. I say nearly all because you have to have some minimum balance.




Sound too good to be true? Well, It’s backed by a published team of researchers, scientists and developers and they’ve realized that the problem of volatility is actually just one huge math problem. They’ve outlined their solution in their white paper on https://alloycoin.com. Their next step is to make Alloy Reserve artificially intelligent. Imagine that, a cryptocurrency that’s smart enough to manage its own growth.

With the stability AlloyCoin could provide, it would be useful for things like: insurance, retirement plans, health savings accounts, venture capital etc. Long term, the team believes the technology can even allow for the trading of traditional assets like stocks and bonds.

---

Reasons Why The Industry Needs Something Like AlloyCoin:

• Stablecoins 3.0 - Von Hayek’s Dream: Expert Blog (https://alloypublic.slack.com/archives/C8KQPQQVD/p1513995486000010)
• Kevin O'Leary explains one big thing people don't understand about bitcoin (but need to) (https://alloypublic.slack.com/archives/C8KQPQQVD/p1513995382000015)
• Futures help dampen and reduce the volatility of the price. (https://alloypublic.slack.com/archives/C8KQPQQVD/p1513995509000004)

volatility is one of the things required in trade, how people will make money if the price is always constant.

You're right. Volatility is how speculators make money. However, if the idea is to create something that is a currency, volatility is the exact opposite of what you need. The price of Bitcoin and many cryptocurrencies recently adjusted by nearly 30% (http://fortune.com/2017/12/22/bitcoin-price-drop-cryptocurrency-bitstamp/).
Can you imagine if the dollar went from being worth 100 cents to 70 cents in a matter of hours? The world would be in chaos.

AlloyCoin's market value will fluctuate, but it has a price floor that is relatively constant and growing at a much more controlled rate. Speculators can still trade at the market price, but will know that there is a safety net of some minimum value for an AlloyCoin established by Alloy Reserve. If market prices drop below that minimum value, anyone can collect their minimum value from Alloy Reserve. But as Alloy Reserve grows faster than miners can mine new coins, gains are paid out with dividends of new AlloyCoin. *Every wallet will earn their share of the growth in the collectively held assets.

Stability without sacrificing gains.

It's like Tether, but AlloyCoin-holders earn interest paid in AlloyCoin.

*Wallets must have some minimum value to collect dividends.

Specific details about the Reserve mechanism can be found in our white paper at: https://alloycoin.com

it seems word or mission from this project very promsing, so what is your next destination? do you plan on creating bounty campaign on your projects?

I am already check website on this projects and details very good. i am very sure if this project will succes. interesting coin.

Thank you brokens,

We do have active bounty campaigns! You can register here:
https://alloycoin.com/bounty/signup

Details about the bounty campaigns can be found here:
https://alloycoin.com/bounty/home

Then login in and check your profile:
https://alloycoin.com/bounty/login/

Unlike other bounty campaigns that only reward for subscribing, we reward you for every newsletter subscriber you refer. Meaning you can earn passive AlloyCoins just by sharing your referral link. You also earn AlloyCoin when you subscribe on your referral link.  :)
You can also submit blog articles to earn AlloyCoin as well.

Currently our legal team is in the process of creating SAFT (Simple Agreements for Future Tokens) for seed funding. Our public ICO will be in summer of 2018.

So how do dividends work?

Thanks awesome_cryptos,

Great question! Our dev team has implemented dividends as follows:

• A blockchain explorer that gathers public addresses for wallets as well as their balances.
  
• Alloy Reserve determines the difference between growth of Reserve assets and inflation caused by mining (circulation inflation).
• This difference, which we refer to as the dividend growth, is measured in terms of AlloyCoin.

• The dividend growth is then proportionately awarded to wallets based on the percentage of circulating coins held in their balance.

There are technical issues of scaling with this approach. Our dev team is currently working on those and for now, this approach should be viable for the foreseeable future.

it looks like this project is quite unique, I want to know, how will the future of this project going forward, if one moment Alloy coins listing in the market exchange, I will be happy to buy it, provided the progress of this project is good

Thank you Ouyunk :)

Our team has been making great progress and Alloy Reserve has a version of AlloyCoin that we plan to release. We're planning for an ICO sometime in August of 2018 and for the first mining software and wallets to become available ~6 months afterwards.

For the AlloyCoin ICO, 90% - 95% of the funds raised in the ICO will be used for the procurement of collectively owned Reserve assets and 5% -
 10% for continued development. After about 6 - 12 months from the ICO, we expect Alloy Reserve to be fully operational and for users to be able to both buy and sell from/to the Reserve.

Currently, AlloyCoin has a bounty campaign that rewards users for sharing information about AlloyCoin. Visit our page: AlloyCoin Bounties (https://alloycoin.com/bounty/home) and create a bounty hunter profile account to join!

For every person you refer to our newsletter, we award 0.15 ALC.

For every blog you submit, we award 2.0 ALC and we accept up to 3 duplicates on separate platforms (Reddit, Medium, etc.) for a total of 6.0 ALC per blog.

Whoa that's actually pretty cool! I just looked through your white paper :)  This is refreshing. Nice to see teams actually innovating instead of just launching another coin.

Could Alloy Coin be used by banks and other financial institutions as a way to make them more decentralized? From my understanding, the Reserve is built into the block-chain which gives miners a way of holding Alloy Reserve accountable. I like that haha no offense.
It seems like this technology would be really useful in the finance industry. Has your team considered marketing Alloy Coin in that direction?

- Nice website btw, I just subscribed ;D

I am interested in your project, which I want to ask why you do not have a signature campaign, I see in the link bounty did not find any signature campaign.

Thanks CryptoCopia,

I'm glad you like our mission :) We certainly don't want to be just another coin! There are enough cryptos for the sake of being crypto.

AlloyCoin absolutely can be used for financial institutions and in fact, some of the inspiration for its idea is borrowed from fiat currencies. The idea of a Reserve is akin to something like the Federal Reserve. The idea of a price floor and being asset-backed is supposed to resemble the idea of the "Gold Standard". Even our name comes from the concept of Alloying the worlds of crypto and fiat currency to introduce stability and decentralization. Alloy aims to be the bridge between crypto and fiat.

We don't take offense to being held accountable haha :) AlloyCoin's blockchain was designed so that Alloy Reserve's business interests and the health of the blockchain are aligned. We want to be held accountable by our community. Plus as a U.S. company, we'll need to meet certain SEC regulations as well. That's part of the reason why our pre-sale and ICO rollout has been a little slow in spite of having a working testnet. We want to make sure we do it correctly.

Thanks for subscribing, I'm glad you liked our website! I actually helped with designing the landing page  ;D

Thanks bozton!

We're constantly updating our website and a signature campaign is underway. I know that our dev team is working on integrating the signature registration to bounty profiles.

The next update to the website within the next month or so, will include a signature campaign and I believe social media bounties too (need to check). Our CEO has repeatedly mentioned having 'content driven' bounties so I need to check on the social media bounties. I suggest you subscribe to our newsletter and you'll be notified as soon as the signature campaign becomes available :)

This seems like the natural next step for cryptocurrencies. I've been waiting for something like this for a while now. There is certainly a need for Alloy Coin especially considering the recent market swings. You're absolutely right that cryptocurrencies are too volatile to use as tender. However, Tether is unattractive to someone like myself who sees cryptocurrencies as investments. You may have just found yourselves a niche!

The ability to earn dividends is precisely what stable cryptocurrencies need.

I had a question about the long term viability of the price floor. How do you prevent reserve assets from depleting? Like a run on the bank?

Cheers

-Cal

Hello Cassiscash,

Thank you for your support and for the vote of confidence :)

I'm happy to hear that you think AlloyCoin solves a real problem!

As for the question regarding the run on the bank, you bring up a really great point. Alloy Reserve wants to be as transparent as possible and we take that issue very seriously.
For those who don't know what a 'Run on the Bank' is, it's where every depositor in a bank returns to claim their money at the same time. In traditional banks, they're only required to keep a portion of their depositor's funds. So if everyone shows up at the same time, not every can get their money.

AlloyCoin does not work like that - We seek to guarantee the value of all circulating coins. Not a fraction of them.

Since Alloy Reserve seeks to guarantee some minimum value, we aim to always buy back AlloyCoins. So for Alloy Reserve, a run on the bank would be where every AlloyCoin holder sells back to Alloy Reserve at the same time.

In order to prevent total depletion of assets, Alloy Reserve actually implements the following precautions:

• First, the price floor is calculated by taking all circulating coins and a "buffer" of about two months worth of AlloyCoins that have yet to be mined.
• Second, Alloy Reserve expects to earn interest on its investments. So the Reserve's value should grow over time.
• Third, Alloy Reserve collects new coins for each block that is mined. So there's always a new supply of coins for Alloy Reserve to sell.
• Lastly, when Alloy Reserve sells coins, they're only ever sold at a value above the price floor. The difference is used to help 'pad' the Reserve.

You should check out the third section of our white paper related to how the price floor is calculated. One main note to take away is that when Alloy Reserve say 'circulating coins' we mean all coins not held by Alloy Reserve. Those are coins that were either mined or sold into circulation. AlloyCoins held by Alloy Reserve have no value. Some people get that confused :)

It's an interesting problem and we have a really solid finance team that oversees those precautions. For the sake of transparency I want to stress that AlloyCoin is not a perfect solution. But the equation we've outlined in the white paper should be viable. We encourage you to review it and if you think you have a better solution, share it with us :)

Cool, love this project!

Your one of the more interesting ones I've seen in a long time.

Also, I just got my first bounty reward, yay! You guys should increase the subscription reward to be more than 0.15 lol :D

I'm happy to hear that! Congrats on your bounties :)

Thanks WithoutRegrets,

I'm looking forward to the simulation game as well  ;D The last I heard from the dev team it was going to be something like a "spreadsheet" strategy game. 

But at the last meeting, our CEO Vahid mentioned that he wants to offer a website with tools for users to evaluate their own crypto portfolios. With an interface for users to visualize their portfolio data. It would also include a high level summary of the top cryptos.

The second one seems like it would be less a game and more like a really cool crypto webapp. But the second one makes more sense long term.

Either way, it'll be cool to see what happens  8)

Super cool project! Do you have mining software released for Alloy Coin? Also, can you do GPU mining with it?
Also, just to clarify, in your paper when you say 'circulation inflation' your referring to the coins mined, or is that the number of coins that are circulating?

Cool concept you guys. I just wish you would launch sooner, summer 2018 is too far away haha

Hi NearlyMiningXx,

When the mining software is released, we are planning for AlloyCoin to be mineable with GPU.

The question regarding circulation inflation actually ties into why the mining software hasn't been released yet. When we say circulation inflation we mean the number of coins that were mined over a period of time (usually about a year) as a percentage of coins already in circulation.

This is an important concept for our model to work since the coins that are mined actually have a negative impact on the price floor. Those coins in a sense dilute the price floor by inflating the number of coins in circulation. So we need to consider them when we calculate our price floor.

For this reason, we can't release mining software yet because by the time summer of 2018 (our ICO) comes around, there would be too many coins in circulation for AlloyCoin's price floor to work. Check out the evaluation section in our white paper (https://alloycoin.com/static/AlloyWhitePaper.pdf) that talks about the effects of circulation inflation.

Alloy Reserve picked summer of 2018 to give us time to prepare for legal issues related to crypto  ;)

On the timeline, it has a part about accredited investors.  Is there a prediction as to how many will be sold?

Hi md360s,

For that particular sale in May, we're planning to sell AlloyCoins at 2.5 USD which is a 50% discount of the target ICO price of 5 USD. We're hoping to raise 400,000 USD for a total of 160,000 AlloyCoin.

We're planning to have the public ICO in August/September. Let me know if you have anymore questions :)

Cheers,
Vahid

bozton,

I wanted to let you know that we just updated our bounty interface on alloycoin.com (https://alloycoin.com) to support signature bounties :). There was an issue with our blog bounty interface which we patched with our recent update. All bounties should be available!

As far as the signature bounties go, they are calculated once every week (Sundays) and are linked to your BTT profiles. Let me know if you have any questions!

### A Clean, Modern Cryptocurrency Data Site - In support of Alloy

**Background & Motivations**


I was really overwhelmed by all the cluttered sites for cryptocurrency data. It seemed to be a theme that if you wanted any information in the crypto space, you had better be prepared for a full on assault from a storm of ICO ads (probably why Facebook and Google dropped them). You could never just visualize data for the sake of data. And ultimately, I felt like crypto-data sites weren't built for the end user so much as they were for advertisers.

I wanted something **simple, clean and minimalistic** without sacrificing utility. I couldn't really find anything that fit that so I created my own tool. It's called AlloyIndex  - https://alloyindex.com (https://alloyindex.com). Alloy is our project's name and Index because we want to add a few indices (financial metrics) at a later point.

https://i.imgur.com/nsIRJQR.png


####AlloyIndex (https://alloyindex.com)
It's not perfect but I wanted to share it in the hopes that Reddit could help me find ways to improve it. It loads best on mobile and desktop--I'll add support for intermediate devices later. **What kind of features would you like that you can't get elsewhere?** Features for now are limited and honestly, most of the data you can find in other places (not claiming you can't). It's the appearance, presentation and most importantly *user experience* of that data I was primarily focusing on. But we do plan on adding more sophisticated data analytics tools to further distinguish ourselves at a later point, if it seems people are interested in AlloyIndex (ie. semantic analysis, social media mentions, auto-trading tools, portfolios/accounts etc.). I have a background in machine learning and natural language processing so I'm excited to apply some of those techniques to data in this space.


Any constructive feedback would be greatly appreciated! If you do end up liking AlloyIndex, feel free to use it :D. Overall, I hope you find useful if not at the very least easy on the eyes.

*Cheers,*

####[AlloyIndex](https://alloyindex.com)

We just released a few new features for AlloyIndex: comparing crypto prices, night shift, quick conversion to USD and a ticket widget you can add to your site!

AlloyIndex (https://alloyindex.com) - Free cryptocurrency data API and cryptocurrency data mining.
https://alloyindex.com (https://alloyindex.com)