New alt idea, way more stable and widely used. Ideas welcome.

alex_fun (OP)

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New alt idea, way more stable and widely used. Ideas welcome.

April 10, 2013, 06:08:01 PM

Hey folks,

Over the course of last few days I looked and looked at how cryptos work. It seems miners simply look for higher reward per gpu, fpga, asic hour. Its rational. Also new coins diff is very low low aka 1 and rises fast, so it does not diffuse alot amongst many users.

I am thinking if new coin used scrypt and had 10% set for foundation which would give free coins to randon facebook users say or femal gamers to popularise it. And make own exchange into usd that via consesus could hold price stable at least initially. How is done? I say 10% of coins goes to foundation and after say first months where coins are given for free, they are sold at say 1 coin 0.10 usd or whatever rate it seems to be ok to start with. This way a) folks who simply want to buy it will know they can get some at fixed rate from foundation b) price is more stable. USD received from sale of foundation stake can be partly used for bounties to improve coin and party redestributed to miners

What you think?

https://bitcointalk.org/index.php?topic=195432.0

skull88

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Re: New alt idea, way more stable and widely used. Ideas welcome.

April 10, 2013, 08:29:27 PM

A foundation that sets a price and chooses who gets some free coins.
Great idea, we take a central authority, let them make the price fixed and we send coins to random people on facebook (can I be in the foundation? I have a few nice people in my friendlist), let's call it Euro Coin or maybe Dollar Coin. Cool

BTC: 1MifMqtqqwMMAbb6zr8u6qEzWqq3CQeGUr
LTC: LhvMYEngkKS2B8FAcbnzHb2dvW8n9eHkdp

alex_fun (OP)

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Re: New alt idea, way more stable and widely used. Ideas welcome.

April 10, 2013, 09:43:54 PM

Gskull yes you can

The price is determined by market (people can buy, sell or nonee of the above). Foundation can have say 100 people or more in it and rule by majority vote. Its main task to decide where to spend 10% foundation stake - on which coin enhancing projects. Perhaps before coin launch it can be agreed that say 8% goes to rate stability fund (aka 8% of all coins are to be sold on the open market at pre determined rate e.g 1 coin 0.1 cents) and 2% are grants for any one who improves coin.

People are free to mine such coin or mine some alt coin. Miners reward is both bounty per block and transactional fee. Main income for early adopters is bounty and later transactional fee. It rewards active participants in the project.

Coin pluses.

More stable exchange rate - hence more attactive for ecommerce.

More stable exchange rate - next to 0 pure speculators who later cry fool

10% foundation stake ability to reward active project participants even if they dont have mining rig aka bringing fresh talent on board.

Potential questions and answers.

When diff rises how then miners can be rewarded? Say they only get 10 coins instead of 50 and since price is stable they might want to mine something else. By that time coin transactional velocity ideally is high and miners main income is in transactional fees. How to calculate potentional income from transactional fees versus mining newer coins? Perhaps every foundation member can run min mhash rig to maintain network. Later it can be fpga and even asics.

https://bitcointalk.org/index.php?topic=195432.0

dabest1

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Re: New alt idea, way more stable and widely used. Ideas welcome.

April 10, 2013, 10:17:44 PM

Maybe make it just 1% instead of 10%? 10% seems rather high.

RambJoe

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Re: New alt idea, way more stable and widely used. Ideas welcome.

April 10, 2013, 11:16:54 PM

I'm confused, so just give random girls money to make them play games?

alex_fun (OP)

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Re: New alt idea, way more stable and widely used. Ideas welcome.

April 10, 2013, 11:27:17 PM

Dabest yes 10% may seems high - its to have reasonable supply of coins to smooth exchange rate.

8% are to be given back to all miners in proportion to their contribution (say you mined 1000 coins then 100 coins goes to foundation stability fund) and 80 comes back to you) each week. Ideally 5% is sold as they arrived into usd and 5% is kept in coin.

Someone got large farm and/or buy alot of coins then sell at say 0,001 in hope to triger panick sell. In this case miners know foundation can buy alot of their coins daily via its fund and have no rational reasons to sell cheaply - Scenario 3.

Someone got large farm even asic and/or bought tons of coins and wants to hoard most of the coins supply and then sell them for more. In this case foundation provides coins and people also unlikely to buy from hoarder. Since price is more less same he got next to 0 incentive to hold them long term - Scenario 1.

Scenarios

1.In usd if coins where sold to maintain rate

2.In coins in case large % of miners themselves collectively choose to sell at 0.1 per coin

3.In coins if dollar reserves were used to buy coins.

4. In mixture of usd and coins.

The idea is what miners give to foundation via 10% they get 8% back and 2% set for bounties to develop coin. It can be 9% (paid week later) and 1% too.

Even in later stages when coin is large it might be wise to keep this 10% arrangement so speculators might find easier target somewhere. And having fund to pay contributors selected by popular vote also seems nice.

Transaction fees for weekly transfers - transfers might be set to be processed free via foundation pool for example. Or perhaps someone got even more ideas

https://bitcointalk.org/index.php?topic=195432.0

alex_fun (OP)

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Re: New alt idea, way more stable and widely used. Ideas welcome.

April 10, 2013, 11:32:24 PM

RambJoe its idea in development

Some percent of coins from 2% foundation grant fund can be used to give free coins via facebook. Most use faucet however on facebook when someone get coin they can share this news with friends. Of course give them to both genders

Girls tend to gossip alot so i though give some to them so they spread news and maybe some even join

https://bitcointalk.org/index.php?topic=195432.0

alex_fun (OP)

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Re: New alt idea, way more stable and widely used. Ideas welcome.

April 11, 2013, 03:28:36 PM

Seems in face of btc crash due to speculation perhaps some investors will be more interested in more stable currency

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Red

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Re: New alt idea, way more stable and widely used. Ideas welcome.

April 19, 2013, 07:36:55 AM

Hi alex_fun,

Thanks for linking this from the StableCione thread. I'll add it to the list of ong

Quote from: alex_fun on April 10, 2013, 06:08:01 PM

How is done? I say 10% of coins goes to foundation and after say first months where coins are given for free, they are sold at say 1 coin 0.10 usd or whatever rate it seems to be ok to start with. This way a) folks who simply want to buy it will know they can get some at fixed rate from foundation b) price is more stable. USD received from sale of foundation stake can be partly used for bounties to improve coin and party redestributed to miners

What you think?

You plan has an unexplained price stability weakness. You are creating your own exchange to enable your foundation to sell their coins at the stable target price.

However, everyone will compete to sell their coins for less than the foundation. That way their coins will sell first. After all, at the beginning, there is nothing else to spend their coins on except to buy USD at the exchange. Even if there were something else to buy, its seller would need to convert back to USD by selling coins for less than the foundation price.

The net effect is everyone will either receive or buy coins for less than the foundation price. And speculators will buy up coins at near zero prices, and use those coins to undercut sellers who received the coins as payment. Forcing them to drop their price even more.

As far as I can tell, unless you mandate that everyone must sell at a higher price than the foundation, the foundation will never be about to sell a single coin. If you make that mandate, nobody else will be able to sell a single coin. So what it the point of buying or accepting them?

To make this kind of system price stable at the beginning, your exchange would have to hold enough reserve enough USD to equal the target value of all distributed coins. Unfortunately, most people who received free coins just sell them back and take your USD. This puts you a worse place than just trying to sell them in the first place.

Now that I think about it. I don't know how to bootstrap ANY StableCoin. I guess I'll have to look into that...

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