Although at the surface it seems a good idea - easy bitcoins with little effort - these pools are destroying the ALT coins and something has to be done to counteract them. What I'm proposing to the developers is already being implemented in SXC and wil be available in the next client release.
These are the issues to counteract:
- when a raid starts the difficulty goes up so much that when they leave regular miners are left to hold the bag
- These pool do an immediate sell, depressing the trade value of a coin, bought by speculators that will sell later to those interested in the survivability of the coin
This is what I propose, but it could be just one of several possible implementations:
- when a hash rate increase of 50% or more from one block to the next, adjust the difficulty right away
- when a hash rate increase of 75% or more from two blocks, adjust the difficulty right away
- when a hash rate increase of 90% or more from three blocks, adjust the difficulty right away
- when a hash rate increase of 100% or more from four blocks, adjust the difficulty right away
these adjustments would not take into consideration any max adjustments a coin may have. It would also protect against slow hash rate increases in the pool algorithm. To re-establish the correct hash rate readjust the difficulty in a similar faction as the pools depart.
It's open for debate