Ripple XRP distribution requires immediate formalization

[ploum]

tl;dr : In this message, I formalize the proposal from Andrew Vorobyov to distribute XRPs but "forcing" Ripple creator to sell 99% of all the XRPs at a fixed price.

I don't think it's enforceable. OpenCoin can simply "sell" all the XRPs to itself.

What would be their interest to do that? They could also take themselves part in the give-away.

[1714171209]

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[Meni Rosenfeld]

tl;dr : In this message, I formalize the proposal from Andrew Vorobyov to distribute XRPs but "forcing" Ripple creator to sell 99% of all the XRPs at a fixed price.

I don't think it's enforceable. OpenCoin can simply "sell" all the XRPs to itself.

What would be their interest to do that? They could also take themselves part in the give-away.

Yes, they could, that's part of the problem.

Their interest would of course be keeping control of the XRP (and the associated capital gains) while creating the illusion that they have been widely distributed and hence healthy. Probably won't matter much but you just can't "force" them to sell the coins, it's entirely up to them what to do with them.

[becoin]

They could also take themselves part in the give-away.

LOL. How is that different from troops throwing away bales of dollar bills from choppers in Iraq?

The only reason to do that is to make everybody happy instantly for a certain time. The only reason you can afford to do that is that the dollar bills have some value to the person you give them and in the same time you know you can print as much as you want if you need it. This is not the way you can build a sustainable economy!

[Zangelbert Bingledack]

OC's Ripple is looking more and more like another "pre-mined" alt-coin, but this time with corporate backing and a big, sneaky PR campaign.

[alexkravets]

I like the proposal to put a fixed dollar-pegged ceiling price on the large remaining percentage of 50% XRPs that will NOT be given away.

According to the wiki here https://ripple.com/wiki/XRP the founders intend to retain 20% and according to posts elsewhere, OpenCoin Inc (which is effectively controlled by the founders) will end up retaining another 30% after the giveaway.

At that point OpenCoins' founders (and through their control, the company) will have to decide if they want to become Craigslist or Google level wealthy, i.e. how much eventual long term wealth is enough ?

If they want to become like Google, they will keep those 50% of XRPs sequestered for long periods of time and will eventually pass most of them down to their heirs, etc.

If they want to become like Craigslist they will adopt the proposal made earlier in this thread to do an orderly sell off of all but say 1 to 5 % of the remaining XRPs at a fixed USD-denominated low price to ensure that the cloud of a "giant XRP hoard" is no longer hanging over the network, but this will still leave both the founders and the company wealthy, just Craigslist wealthy not Google-level wealthy.

There ARE ways to ensure that it's hard to fake the distribution or fake sales of XRPs by limiting sales to aged accounts and in fixed maximum per day quantities, etc.

Cheers ....

[bitbully]

OC's Ripple is looking more and more like another "pre-mined" alt-coin, but this time with corporate backing and a big, sneaky PR campaign.

+1

Great discussion here guys. The only thing that really stands out is that Joel, despite replying to nearly every technical aspect (albeit biasedly), has not once addressed the issue of trust, nor denied his corporate overlords' intentions. Your silence will only incriminate you further.

What's that Joel? You plead the 5th?

It's like these guys are trying to patent the cure for cancer and then license it to the world; and then they claim they aren't sharing it for free because they love us.

[alexkravets]

RFC: XPR post-50% giveaway distribution / sale proposal:
https://bitcointalk.org/index.php?topic=148278.msg1574081#msg1574081

[freequant]

People can buy XRP using proof of work based coins, including bitcoins. So those who want to spend proof of work to obtain them are free to do so.

The problem is that you advocating proof of work along side central distribution of XRP, while I am advocating proof of work in lieu of central distribution.

No, remember I also said once we get the source code we can make a fork, divide all the RIpples evenly between all the people who claim to have thought of a more fair distribution method, and let them all apply their method to their share.

-MarkM-

For the record: I have thought of a more fair distribution method, whereby I will receive all the coins and spend them on goods and services in the Ripple economy.

[alexkravets]

Guys, stop smoking crack and poo pooing, Ripple is Cryptocurrency 2.0

Cheers

[ploum]

Any news from Ripple? I haven't seen anything from them in a while.

[alexkravets]

Calm before the storm, some stuff might come out at today's meetup in SF