[c0fferC0in] Cryptocurrency Distribution Methods

[c0ffer]

I am starting this thread to seek cryptocommunity feedback about popular methods for cryptocurrency distribution.

This is in relation to c0fferC0in, the cryptocurrency I have started in this thread:

https://bitcointalk.org/index.php?topic=1271897.0

c0fferC0in is purely proof-of-stake to keep the economic factors manageable. Making the currency available to potential users is where things can get interesting and I am curious to see if anyone can offer some interesting insights and/or suggestions before final decisions are made.

Methods currently being examined include:

• Exchange-based initial release
• OTC presales
• Auctions

I am interested in hearing constructive feedback concerning potential methods for distribution of c0fferC0in in it's early stages.

[tomahawk337]

You could give them away to members above junior level. Each member rank could get more coins. It's been done before, but giveaway threads are banned if they offer a reward for insubstantial posts of addresses. You can ask people to pm addresses for a giveaway, but they cannot post them in the thread.

[c0ffer]

You could give them away to members above junior level. Each member rank could get more coins. It's been done before, but giveaway threads are banned if they offer a reward for insubstantial posts of addresses. You can ask people to pm addresses for a giveaway, but they cannot post them in the thread.

Thank you for your suggestion.

Because there is physical product associated with this coin there will not be any significant quantities of coins given away. Coins will likely enter distribution at a discounted rate but activity surrounding this coin revolves around the availability of gemstones, initially at the c0ffer store. Giving away coins is the equivalent to giving away gemstones and that is not viable.

I have been doing some calculations based on exchange rates for Bitcoin and the amount of inventory currently available and have been getting some initial ideas. It becomes more challenging when additional inventory gets added, which is assured.

I am a pioneer in auctioning items at this site so it would be very fitting that some coins be auctioned but depending on responses from exchanges that may or may not change.

Ideally c0fferC0in will be listed on as many exchanges as possible as early as possible but it's reasonable to think that an OTC community may also emerge.

[bhokor]

really interesting, have you thought in a pure faucet distribution system?

[Over Powered]

Giveaways in smaller amounts generally give a more even distribution that most other methods.

[c0ffer]

really interesting, have you thought in a pure faucet distribution system?

Thank you for your question.

Faucets are used to give away coins and are generally based on advertising for revenue. It is not likely that I will be developing a faucet for this coin directly nor using faucets as a primary means for distribution. I will be happy to support faucet providers with links, etc. but will not be offering much (if any) in the way of coins for use in faucets.

[c0ffer]

Giveaways in smaller amounts generally give a more even distribution that most other methods.

While this may be true, giving away significant amounts of c0fferC0in will not be the method of distribution. Many of the methods used for distributing other types of coins are not applicable to c0fferC0in.

It is likely that a portion of the coins will be auctioned.

It is likely that a portion of the coins will be sold to open exchange orders.

It is possible that a portion of the coins will be sold p2p/OTC.

Some of the unknowns are:

At what price should the initial coins be sold in the above mentioned conditions?
How are those coins to be fairly valued based on their association with inventory?
How many coins should be sold under the various conditions?

[MisO69]

We give you BTC, you give us Tokens, we give you back Tokens and receive actual gems.

So if your intention is to make BTC then why not sell the gems directly for BTC? Seems like a complex system just to sell your Gemstones...

Have you looked at UIA's on Nxt or Bitshares? There are benefits to using those over another altcoin.

Otherwise if you must use a bitcoin fork then the only way to distribute a coin fairly is through proof of work. Let the free market decide the price.

[c0ffer]

We give you BTC, you give us Tokens, we give you back Tokens and receive actual gems.

So if your intention is to make BTC then why not sell the gems directly for BTC? Seems like a complex system just to sell your Gemstones...

Have you looked at UIA's on Nxt or Bitshares? There are benefits to using those over another altcoin.

Otherwise if you must use a bitcoin fork then the only way to distribute a coin fairly is through proof of work. Let the free market decide the price.

Thank you for your input.

Items at the store can not be purchased using national currencies but they can be purchased directly with BTC as well as c0fferC0in. Items in the store are priced based on their value in USD. Purchase prices in BTC are at market value but c0fferC0in prices are fixed. This allows c0fferC0in value to function independently from the price of Bitcoin but related to the value of the gemstones. The transactions are very simple, the value factors are potentially complex and open to the market which is what makes this coin interesting and potentially very different.

There are other platforms that can accommodate this type of functionality (e.g. Bitshares, Nxt, ETH, etc.) but using an altcoin fork is the most open option and allows the best potential for adoption outside of my efforts alone.

Proof-of-work is used to encourage network support which introduces a cost element that has an effect on market value but is not the sole driver of market value. c0fferC0in is Proof-of-stake only so there is no hard cost for network support but network support is rewarded at a sustainable and manageable rate.

The market will ultimately decide the value of the coins but that will be a separate valuation from the initial value which will still be related to the available inventory (both current and future).

[Godson_Mansa]

if you wanna do an ICO just go ahead and get it done.
a little negativity involved but if prices are fair we'll buy.

coins are born with value so giveaways are not a good idea.

i would've preferred a coin with a short POW phase and then POS.(this is really the best option)
let the market decide its value but you've already created a coin so...

or

an NXT coin/asset no need to worry about network security or anything of the like.
(i say asset cos as someone mentioned above, us paying you BTC for coins we would sell for BTC and buy stones with is kinda pointless. the only reason we would do that is if we viewed it as an investment. if that is the case just go ahead and drop the whole coin idea and just go for an asset)


peace out.  

oh yeah final option is for us to do squats for coin 10 squats for 1 coffercoin

[c0ffer]

Great points and thank you for your input.

if you wanna do an ICO just go ahead and get it done.
a little negativity involved but if prices are fair we'll buy.

coins are born with value so giveaways are not a good idea.

I would consider this being direct as opposed to negative. Coins are definitely "born with value" and giving them away only depreciates their value.

...
(i say asset cos as someone mentioned above, us paying you BTC for coins we would sell for BTC and buy stones with is kinda pointless. the only reason we would do that is if we viewed it as an investment. if that is the case just go ahead and drop the whole coin idea and just go for an asset)

Coins will be distributed initially at a value that will create opportunities for those who participate. How people perceive the value from their own perspective gets interesting with the potential for trading coins in addition to redeeming them for gemstones.

...
oh yeah final option is for us to do squats for coin 10 squats for 1 coffercoin

This would require some form of verifiable proof, preferably in blockchain form, perhaps a new algorithm: Proof-of-Squats. The tokens are easy enough to decentralize but the squats themselves would present a new set of challenges