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Title: What is instamine and Premine? Is it good ? Post by: puremage111 on April 18, 2017, 05:41:02 PM Well i always saw people said that dash has instamine and some other coin has high premine which results a pump and dump happens
Anyone mind to explain and differentiate both? If i am not mistaken premine = coins that were mine/sold before the actual thing actually been launch? Is ICO Type of premine? Thanks Title: Re: What is instamine and Premine? Is it good ? Post by: bathrobehero on April 18, 2017, 05:52:31 PM Yes, premine is basically a few high reward blocks the dev solomines before releasing the coin (wallet, source, etc).
Instamine is when blocks are mined way too fast than what was intended; let's say the block target is 60 seconds, so 1 block should be mined roughly every 60 seconds. There's a mechanism in place that controls the complexity of solving the next block (based on how fast blocks are being found by miners), called difficulty retarget. Which make blocks harder to mine if blocks are mined too fast and vice versa. Coins are almost always launch with very very low difficulty and it takes time for the difficulty retarget to increase the complexity of solving blocks by a huge amount and when a coin is launched, a huge amount of miners will start mining while the difficulty is only slowly climbing. Instamining can be as fast as mining hundreds of blocks within minutes. And can last a long time, depending on the difficulty retarget in place. Title: Re: What is instamine and Premine? Is it good ? Post by: puremage111 on April 19, 2017, 12:07:04 AM Yes, premine is basically a few high reward blocks the dev solomines before releasing the coin (wallet, source, etc). Instamine is when blocks are mined way too fast than what was intended; let's say the block target is 60 seconds, so 1 block should be mined roughly every 60 seconds. There's a mechanism in place that controls the complexity of solving the next block (based on how fast blocks are being found by miners), called difficulty retarget. Which make blocks harder to mine if blocks are mined too fast and vice versa. Coins are almost always launch with very very low difficulty and it takes time for the difficulty retarget to increase the complexity of solving blocks by a huge amount and when a coin is launched, a huge amount of miners will start mining while the difficulty is only slowly climbing. Instamining can be as fast as mining hundreds of blocks within minutes. And can last a long time, depending on the difficulty retarget in place. Alright thanks. Therefore what would be an appropriate amount of % for premine? Title: Re: What is instamine and Premine? Is it good ? Post by: bathrobehero on April 19, 2017, 12:08:59 AM Yes, premine is basically a few high reward blocks the dev solomines before releasing the coin (wallet, source, etc). Instamine is when blocks are mined way too fast than what was intended; let's say the block target is 60 seconds, so 1 block should be mined roughly every 60 seconds. There's a mechanism in place that controls the complexity of solving the next block (based on how fast blocks are being found by miners), called difficulty retarget. Which make blocks harder to mine if blocks are mined too fast and vice versa. Coins are almost always launch with very very low difficulty and it takes time for the difficulty retarget to increase the complexity of solving blocks by a huge amount and when a coin is launched, a huge amount of miners will start mining while the difficulty is only slowly climbing. Instamining can be as fast as mining hundreds of blocks within minutes. And can last a long time, depending on the difficulty retarget in place. Alright thanks. Therefore what would be an appropriate amount of % for premine? Depends on a few thigns but generally 0%. Anything above and distribution is arguably not fair. Title: Re: What is instamine and Premine? Is it good ? Post by: iluvpie60 on May 16, 2017, 05:14:41 PM Premine is the devs putting away coins for themselves to use as a bounty or pay themselves/staff.
Instamine is probably more scammy and just for greed. Hard to tell when someone is doing one or other though. Instamine usually is an "accident" and the devs just "happen to have it go in their favor". Wink wink. |