Hi all.
After this some critizing i am going more in deep to share information and argument that is related with this redistribution decition.
Sorry but is a long reading, the big decitions needs big arguments!!
i have distributed your questions by some topics, therefore with this extended explanation i feel that all the big concerns have an answer in this document:
Democratic process questionFirst af all, this is not a suddently decition of the Faircoin dev team, but a very thought and discussed decition of more than two months that was talked in person in the FairCoop Winter meeting,
(see:
https://fair.coop/groups/faircoop-community/forum/topic/winter-summit-overview/ )
and has also been discused again, with a broad consensus, by the Faircoop ecosystem Council, which is curently the political risponsable to endorse this kind of decition.
In the discussion was proposed some more radical options, like recover regularly all the coins not minted or moved for a long term (aka, one year), but this kind of options was discarded.
The option approved seems to all the people with the whole picture of the FairCoop plans, and the past situations in faircoin, a prudent balance between the tradition of cryptocurrencies, and the culture of the groups and social movements that are being parte of the FairCoop process.
We value the descentralized and trustless decition process which Bitcoin ledger philosophy is based, and we see that in general this is also important by FairCoin, but Faircoop is trying to mix different philosophies that never was together before, and to make it possible in an inclusive way we need to be flexible and innovative, this means consider all the key values like the descentralized ledger from bitcoin and equality from faircoop, but be able to make balanced decitions taking all in account.
Bitcoin vs Faircoin. Pure descentralization vs political open participatory process.Currency creation from Bitcoin and Faircoin was very different. To own Bitcoin ever had a cost, by mining, by working, or by buying BTC. (well, not ever, because there are a lot of stole BTC...this is problem to no forget...)
On the other hand in the first distribution of Faircoin, a small amount of people received a gift by free and without doing nothing special for it. This creates a relation between the old holders and new ones that is very different that how it works in BTC, and could make different the better choises to do..
A second point here, related to this, is that which in the Bitcoin model is called consensus, is not really a political consensus, but an imposition of the most powerful nodes though the less powerful. In the case of staking coins like Faircoin, this way would be an imposition of the bigger savers to the rest of the holders.
The FairCoop model, that we are developing for faircoin is based in human consensus.
And this is not based in holding coins, but in human political discussions, that are open to all the community, and have different tools to make possible a conclusion, like the lead of the Ecosystem council, the open discussion in the Fairnetwork, and direct voting systems.
Some documents about it:
https://fair.coop/decisions-process/https://fair.coop/groups/faircoop-community/forum/topic/methodological-document-from-the-ecosystemic-council/This model is not yet fully operative, we are conscient of it. We need more participation and some time to bring the process working. Anyway the participation in the Fairnetwork is growing up already today...
https://fair.coop/social-network/ and the things are advancing propertly.
Therefore this blockchain decision is not yet a model about how decitions will work in FairCoop/Faircoin, but a transition process, in this yet very early stage of the FairCoop developments.
And this is an special decition that does not create any precedent. A decition that is needed to close a stage, and to continue with more force.
First History of faircoin and Mintpal episodyThe story of Faircoin is very special and helps to understand why we are now doing this unique decition. The launch of the wallet was very crapy and very strange things happened with the coin the firsts weeks. It was some kind of hack in the first exchange nxt-e, and after that a hard confrontation between the dev team and the exchange team; also two involunteer hardforks, and
The first developers leave the project around finally of April 2014.
After all of this, we got the take over of the coin in main and some month afters, related this with the project of FairCoop.
But we had the bad surpress, that after doing an important work recovering the coins from Mintpal – we was the first coin to get the coins back- they send us only the 69% of the coins that they had in balances.
Remember:
The Mintpal Wallet contained: 14946903.112935999408 FAIR
The balance of the account data counted: 21787698.41457512 FAIR
Faircoins withdrawed in mintpal v2: -243666,36021 FAIR
Coins missing: -6597129,30163912
And after many hours analizing the blockchain we dont know what happen but seems that there was some evident relation between this problems of the beginning of faircoin and the mintpal lost coins.
Otherwise, when we gave everyone the 100% of the coins, that was stored in Mintpal, all of you was happy with this action, but we already explained that this was possible because we was delaying the recovering of coins belonging to users from an investment funds that i (smartaction) manage. And also other users that claimed their coins after the wallet was empty...
What seems a bit strange to me is at the same time be happy with that decitions and critize now at the moment that we need to complete this process and left it behind us. Without the determination that we are doing now, this past decition dont would not have been possible
Anyway, from the point of view of the Faircoin history, we can see this current decition, as the way to breaking with the past, in a mode that only can happen one time. A kind of reborn, after which, we will be full responible of our present and future.
The 2 M for developements. Why? The recovering of unused coins, will be at the most around 4M. Not 6.5M at was lost on mintpal, but not 2M at was pending to recover from there...
This amount comes from the criteria that we followed to identify the coins that has been unused.
There 4M are the coins that comes from the first distribution and has been unused neither minted from the first beginning. We can have the full confirmation that this coins hasnt had any cost and also the full confirmation that there was not any reciprocity to the faircoin community or security (aka, minting at leats one time is a kind of reciprocity) Anyway this is a very flexible criteria,
because as has been stated if some one shows ownership of this coins yet after the change of blockchain he will mantaint it ownership..
Therefore this 2M, are a maximum amount but is not garanteed. And the amount that finally keeps for this fund, will mean a change from abandoned coins to redistributed coins to some working in FairCoop/Faircoin developements, in a way that will be decided in an open participatory process.
Anyway, why to recover this unused coins? As i explained before, the way how was firstly distributed the 50M faircoin is too much unfair, from the vision of lot of newcomers to the FairCoop process. There are a lot of people that is doing or will do, a lot of work for the Faircoop/Faircoin process and dont have yet any faircoin, or not will have if we dont create this fund.
This is meaning that we also are receiving some nagging from people involved in FairCoop that not understand why to pay for buying faircoin to people that received it for free, and has did nothing to create value.
As we decided take over this coin, we dont can change the past, but now, taking profit that we are moving to a new blockchain, we have an unique opportunity, to balance some justice for the people involved in the current and future developements.
Therefore, as a FairCoop ecosystem council and Faircoin developement team, we are trying to manage the equilibrium between everyone different perspectives, and we have seen this decition of recovering unused coins, one time, as the fairer way to create this balance
So, from the global perspective of all the process, i would like to ask to everyone here, to be comprensive with this one time special decition that we are taking which will be in benefit of the involvement and confidence of everyone related Faircoop and Faircoin
As a summary which funds will remain after the new blockchain is working?Because some comments are managing unaccurate info, i will like to summarize again the funds in hands of FairCoop,
10.3 MILIONS CURRENTLY
FOR LONG TERM, Most of this funds was presentedd with the FairCoop launch in september, and 300.000 has been added with minting and some donations coming from the coopfunding.net initiative.
This 10.3M are distributed like this:
Global south fund 5120946,839046
Commons fund 2571084,070319
Infraestrcuture fund 1584455,940681
pooled fund 1021176,85
A NEW FUND OF 2 MILIONS -AT MOST- FOR SHORT TERM DEVELOPMENTS
About this new fund the decition will be made openly by the Faircoop community, that can include everyone here because the participation is open. Already there are a thread open here to decide the most important priorities for bounties:
https://fair.coop/groups/faircoop-community/forum/topic/bounties-for-faircoop-developement/What mean this for value . This is like creating money for nothing?Is a very simplistic approachment to believe that to put in circulation 4M of coins (that was already in the supply anyway!), therefore less than the 8% of coins is bad for the faircoin value. Every distribution of coins will have a relation with the perception of value depending of what is created in exchange of this distribution.
In the concrete situation, of the 2 Milion for faircoin developements is a case clear precisely that distribution is going to create better perception of value and not the opposite. For example if 100000 coins are distributed in exchange of a new payment processor for online marketplaces, this will mean an important step in the faircoin usefulness that will atract more and more products and services, more an more people involved, etc.. with value very bigger than 0,2% of the growth of distribution that it means.
I have a big expertise in economics and i perceive a lot of misunderstanding in the cryptocurrency world, related how creation of real value and money creation needs to be related. If you want to learn more about it i suggest some readings like:
http://fundersandfounders.com/the-history-of-creating-value/http://en.wikipedia.org/wiki/Social_creditSo, bad inflation comes when money is created without wealth creation; and not ever that money is created is bad...
For example, if we distribute money in exchange of service/projects creation, specially if is innovative and worthy for the faircoin ecosystem, the creation ups the value, not the opposite!
Technical developementsTom, has already just explained what will mean this new blockchain for faircoin usefullnes.
Our blockchain will be 40 times faster!!!
But not only this... If we has been silent last months related new technical developements, is because this are being developed for Sha256, therefore after the new blockchain, we will have accesible finally this improvements. This will include the pending android wallet, and more other surprises...
I feel, that this is what mainly matters really of this announcement.... Faircoin will became, finally, a currency well prepared for the real world use!!!
In fact at the technical level this is not a hard fork, but a reborn with a new blockchain, a new database system. A new blockchain which is compatible with your wallet.dat thanks to the very hard work from our core developer, Tom.
ConclusionThe decition of taking profit of this pending blockchain change, to recover the unused coins of the initial distribution is a very thought one. I invite everyone to take in consideration all explained here and trust this key and unique decition for the better of Faircoin.
Well, this is all for today... thanks for being reading until here :-)
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