Bitcoin Forum

Premines, while greatly frowned upon, are often a very strategic and necessary part of any new coin launch.  
When used correctly, premines can greatly help aide in the development and innovation of new coins.  That
said, with one scam after another cropping up in our industry, investors are scared to death to touch new
coins that contain a premine component.

The Solution?

Premine escrow!

I believe the community should demand premine escrow much in the way they demand escrow for IPO's.

If a trusted member is the only person with access to the premine, then a strict ledger can be kept and
the premine can be delivered to the necessary parties as needed.  This strategy would eliminate the fear
for investors of premine dumping by anonymous devs and greatly clean up our community.

Thoughts?

They will not accept this. Info 100%.

good idea .agreed

If a dev does not accept these terms then they are a scammer...plain and simple.

actually - this come at a perfect time because I'm getting ready to release a coin and was going to insist on a premine escrow.

in addition the premine escrow should be published with certain release dates for the escrowed amount. The last thing an investor wants is the coin dev undermining his/her investment.

Investors should be free to do as they please with their coins though.

thoughts?

Great idea. I can see you getting a lot of kickback, but it's still a great idea.

Good idea.

I hope that for coins which have a longer PoW period premine will be completely replaced with a percentage of each block mined, similarily how AidBit does it. So instead of the devs getting a massive amount of coins on launch, they would slowly get like 0.5% of every block mined so they would actually be motivated to follow up on the coin as they would only get the usual premine amount at the end of the PoW phase - which is why it's only preferable with long PoW coins.

EscrowCoin? ;)

I really like this. I am trying to come up with a plan what will makes IPO investors and miners confident in the coin I plan on releasing.

It makes sense, there is no reason why a dev would need unlimited access to premine funds with zero accountability.

We need to clean up our community and put checks and balances in place to ensure a safe and fair future for everything crypto.

The scams are ruining our community and the pools/miners/traders need to take a stand.

This is another phenomenal solution.  The major issue with premines is the threat that they can be dumped at any time, and in doing so, deem a coin valueless.

Your solution is another excellent alternative to premines as we know them.  My only critique is that developers may need more funds upfront to help with development,
so your suggestion may hinder the early growth of a coin.

all great stuff - I donlt think their ruining it but what it does do is to cause all of us to immediately treat any of the coin devs as criminals - of course some of them deserve it! - LOL

I work for a Hedge Fund in I.T. so I am used to full transparency - it's kind of a way of life for me.

What surprises me most around these parts is the amount of trust people put into coins devs who simply show up with a new username each time they release a coin and hide under a cloak of anonimity - that is just wrong and should not be tolerated. There needs to be transparency

Yesterday I was thinking in something like that. Today I opened this thread: https://bitcointalk.org/index.php?topic=717405.0
Yeh, I m tired of these scams too.
I think that a premined escrowed could be possible, but it needs a lot of investors that pretend it. I don t know if this is the right way but keeping this situation the crypto world will die soon.

Exactly right.  No reason whatsoever to not accept this requirement.

I think at this point new coins don't deserve premine unless they have something unique to contribute to the crypto scene like a groundbreaking new feature. Otherwise it's obvious why people launch new coins with premine. Either way, devs would be guaranteed to have the coins which means they could pay for bounties, just not instantly. With a block explorer (which I think should be a standard like wallets at launch) people could track the devs royalty address.

Considering how incredibly generous the community can be if they like what they see I'm sure it's possible to have the amount of the per block percentage which goes to the devs up to the community by voting in the wallet similarily it's possible to vote for the block reward amount for certain coins.
I'm pretty sure if a dev is active, rolling out new features, etc. people will vote up the percentage and conversely if the dev is not delivering or not giving enough attention to a coin the cummunity will vote their reward accordingly to 0.

Awesome suggestion.  If the community gets behind this, they could make it happen.  Let's hope we are able to raise awareness and that potential investors demand a change in the way premines are implemented.

I think this is an awesome idea and is greatly needed.

for example, the premine could be given in different steps but within one/two months

devs have to say how much they want..and after that the coin holder sold on diffrent exchanges and sent the dev the btc..limited payouts is a must!

Right, as necessary.  You could even have the community vote on what to use the premine for and how much.  For example, the dev could say he wants to use 10,000 coins for a website, and the community could vote yes or no.  There are so many different ways to implement the premine escrow, and they are all beneficial to investors.

i think this is the best way. if we grow, then we will be a BIG group and we may PRETEND this kind of service. Someone will thanks us in the future. i m tired to make rich the first scammer nerd able to manage a couple of codes

It's really just about accountability.  Devs have been given far too much freedom to screw investors over and over again.  There is absolutely nothing wrong with a dev having a premine, but it needs to be used properly.  If a dev is looking to earn off the coin then they can ask for donations based on performance.  The premine should NOT be used as payment to the dev for their services.

what about hidden premine ...

That issue is being addressed by the code checkers.  It is everyone's responsibility to always check the code and make sure it is clean.  I am attempting to solve the problem of investors fearful of investing in coins with premines even though the premines may be necessary for development.  This solution does not hinder the dev, but at the same time gives investors peace of mind.

Another bullshit.

Soon people will asking to add their own code in the new coins...

 ::)

This idea won't happen.  For one moment I want you all to put yourself in the shoes of a dev.  You take time to create the coin.  You want that coin to go far.  You then give control of your working capital the premine to a third party.  That third party runs off with all your funds.  Or that third party decides your reasoning for withdrawing funds from escrow isn't good enough and it adversely affects the coin and it dies.  These are just a few reasons why no dev on earth is going to willing give up control of a premine.  I am guessing there are 100s of other reasons.

I disagree, it's really no different than the IPO guidelines set forth by Poloniex.  It will not hinder the developer, but will mean a great deal to investors.  Looking forward to seeing the first new coin listed with "[Escrowed Premine]" in the title.

exactly. my btc are ready for it

He who controls the premine controls the coin.  Ok lets say polo is holding the premine in escrow.  I am the dev.  I say polo I need to withdraw 100 of that 150000 premine to pay for a translation.  They say no.  Where does that leave the dev?  Or they say ok.  Then come to find out the 100 coin for the translation was sent to the devs other wallet address.  There are a million ways to skim off the top of a premine.  Who holds it is of little concern.  Anyone including an exchange could run off with it.

There is an old saying trust me with your life but not your money or your wife.  Now how many devs are going to trust someone with that money?

Small premine to cover only bounties plus Foundation wallets are the answer.  Make a small premine only enough to cover starting bounties only then 1% of each block.  Show those set bounties.  People get that and can get on board with that.

provide escrow for that too

When Onyxcoin was launched many people were concerned about the premine.  I suggested to the dev that he use escrow for the premine.  He got very defensive and stated that the premine is the devs payment for creating the coin.  Fast forward to today...the dev dumped the premine.

Bottom line, if a dev won't accept an escrowed premine, they are a scammer.

Wake up people!

lol, it was an announced scam and the stupid people invested in that coin! they are making rich a lot of devs! till when there will be so much idiot members it will be impossible to find a solution because the real thing is that PEOPLE LIKES TO BE SCAMMED

those who don t agree with the escrowed premine are devs! it s clear