Bitcoin Forum

I just happened to see this : https://bitcointalk.org/index.php?topic=5139383.msg50896887#msg50896887

I am not sure this is a legit coin or not. But, it seems they are trying to fix prices for merits. Will this be good ? Theymos will allow us to earn based on merits ? I just plan to start writing good posts to have merits but before that wanted to make sure these things are legit or not.

@Mods:
If this is not a right board for this, I am sorry please move.

The OP is a bit confusing, but I'm not sure they are offering to sell merits. I think they are trying to get members with an existing high merit count to promote their product. Perhaps somebody could clarify the situation.

btw. I don't think that I want to get involved without the provision of a lot more information.

Lol, a coin to push the quality of the posts in the forum.
No way. If you connect merit to money, the thing will go way too wrong. People already selling merit underground and it's not good.

It looks like a new method to select real users for an airdrop.
I can't wait for a real coin with real value to do that :D

I don't see anything particularly wrong with that. They're not selling or buying merits. What they're offering is not too different from e.g. sig campaigns that require to have a certain number of earned merits or pay more to users who have a certain number of earned merits.

I asked him a couple questions.  :)

Agree--I'm a bit confused, but from what I can understand they're not selling merits but awarding tokens based on how many merits you earn on bitcointalk.  There's a big difference in my opinion.  There would be really no incentive to obtain merits illicitly (like buying them) in order to receive tokens, unless the price of the token shot up in value.  Even then, that would probably drive up the cost of buying merits in response.

While I don't think there's anything shady about the cBux offering (though I did NOT read the entire ANN post), this is just another project that's likely doomed to failure.  There are so many projects, so many tokens and coins, and there's only so much interest and money that can go into all of them.  cBux doesn't really strike me as a breakthrough idea, and it probably won't keep anyone's attention for long.

Exactly what i was thinking, except that in this case it more like the more merits one has, the more tokens one gets.
The only bad outcome if not well handled is that certain members could attempt to abuse merit system (buy/sell merits) before participating so as to get more tokens

That is why it would be important to set the number of cbux to be released NOW, instead of just promising he will "burn" anything left of the billion he will create.  I have a feeling when he announces how many he is giving himself, interest will fade, so he will avoid setting the numbers until the project launches.

He said that he will receive the same amount as everyone else based on the rules he made. Amount of bitcoins on that particular block and the total amount of merits plus all earned merits etc.
What I dont understand is how can he guarantee or promise that the price of the token will be $1. It is not really that easy is it?

If they're just using merit as a metric for an airdrop, without requiring that anyone send merit, then I don't have a problem with that. It's totally centralized, obviously, but it's not a terrible way to do it.


This is totally unrelated to this particular token, which I don't know anything about and only spent 30 seconds skimming, but you could do a stablecoin in a mostly-decentralized way like this:
 - Call the stablecoin "SSCN". There's also another token which is part of the same system called "SBND".
 - When the price is below $1, the system automatically creates x SBND tokens and sells them for SSCN tokens in an automatic auction process. This destroys SSCN coins, reducing the supply and therefore increasing the price.
 - When the price is above $1, the system automatically buys y SBND tokens in return for SSCN tokens in an automatic auction process. This creates SSCN coins, increasing the supply and therefore reducing the price.

(Speculators would buy SBND tokens if they think that SSCN is going to become more popular, and sell them if they think that SSCN is going to become less popular.)

A decentralized system cannot know anything about prices, so some centralized entity needs to provide SSCN's price to the system as an input. This is an unavoidable point of centralization. But everything else, such as determining x and y above and conducting the auctions, could be done automatically.

I believe it can, we just have to figure out how.  :)

This isn't a merit trading/selling scheme by the coin creators or if it is it's an extremely long game type move. The merit is only being used for distribution purposes.

In the same way people used airdropped merits to farm accounts, they will be able manipulate the distribution in there favor if they have hoarded airdropped merits until distribution of CBUX starts, or earn merits at a reasonable pace. I notice nothing in their announcement preventing alts from claiming, or meriting alts. Really someone can turn their 20 earned merit into 30CBUX by meriting their alt with their 10 smerit. Turn that into a larger scale operation or blackmarket pool of traders and they increase their earnings.

In the same way that the merit system itself is abused their coins distribution could be abused. This is more their problem if they see a problem with it. The forum wouldn't suffer anymore than it does from people who attempt to abuse merit for their own self interests.

It's an interesting concept to use the forum for a launch. They are pretty much saying we are going to hand out [Insert total merit distributed] worth of USD if we can believe in it. A hard sell but a project that doesn't seem to be malicious in nature.

This whole concept look silly and  it is something that he is creating value from thin air.

I can say this is somewhat of scam project or ponzi at the best and showing that project will be used to reward the merited user (with there free,worthless token.)  ,just to get acceptance in the community.


Edit:


Are the stable coins are not backed by the fiat currencies?

from the original post;

They're just requiring a specific amount of merits that is exclusive to hero members. I think the project is too shady, how can you give a bunch of money to those people who have just earned at least 50 merits (if they have a 500 airdropped merits). After the distribution, they will just give another bunch of money to some members here, do you think it's possible? nah.

It will just urge again some beginners to earn merits and do such things like merit abuse because there are no requirements at all, just merits.

They typically are (or claim to), but that's not really the point. Most people never intend to trade the stablecoin for the underlying currency. The point is for it to have ~zero volatility so that you can use it as a non-position when trading.

I think you got that wrong. It is not exclusive to hero members and above, he only gave an example using a hero member in his post. In your case you would receive 265 units of his tokens the same way another member would get 120 units if he has 120 merits or 550 like in the example.