A. The coin is a hybrid PoW/PoS coin using Scrypt Algo with a total supply of 210,000,000 DFSCoins
There is a pre-mine of 20% or 42,000,000 coins, the pre-mine was necessary since we are using it as in game currency
The Scrypt algo allows for CPU mining, with a block reward of 20 coins and 100 coinbase maturity
The PoS percentage is 8% per year and staking starts after 8 hours.
Can you expand further on why the pre-mine of 20% was necessary for in game currency? Once it is used as in game currency, people will have to buy the coins, therefore generating income completely for the team, instead of having people mine it or buy it themselves from exchanges?
Hi and sorry for the very long post but I wanted to give you as much detail as possible so the community understands.
Mining will be available to everyone and we will be listing the coins on exchanges where people can buy them from the open market so that income is not going to the team.
I was going to explain this in our ICO ANN but glad to answer that for you now. The 20% pre-mine was not an easy decision to come to. We studied the ICO markets for months and I found that traditional private equity valuations did not make any since for nearly all of the projects I reviewed, that being said we also understand that a lot of new coins being introduced to the market are possible money grabs. When i ran the numbers on my end it was not easy to find a good balance of having enough coins needed for in game currency, enough coins to offer at a decent price and enough coins to be held for our initial B2B plans.
So I contacted a few coin devs who's coin looked to be legit with questions like why coin A needs 1 Billion total coin supply and coin B only needed 50M total coin supply. I also asked about pre-mine coins and other relative questions trying to understand where devs are coming up with their numbers.
The replies I got basically told me there is no correct answer to any of this, and that each dev has thier own personal preference. Devs try to estimate the best they can on whats best for their individual business needs.
So this is what I came up with as a good match and balance, *please note that there is still time for core team members to submit a motion to make minor changes to the exact distribution %
60% of the pre-mine DFSCoin will be offered in the ICO, Each core team member will receive 2% which is subject to 6 month lockup rules with sale % caps. The remaining coins will be used to two purposes that I will also explain the reasoning behind them.
1st we need to have 20% or more DFSCoin held to guarantee prize pools, this amount will be clearly displayed on the website and verifiable on the blockchain. The reason for this is 2 fold. First you need to understand that with the exception of Guaranteed to start contests, prize pools are covered by the entry fees, this has been great for smaller operators to host contests without the financial risks.
This is all good until someone ruins the party, in comes FantasyAces, who decided to use player deposits, not the rake or profits to pay for corporate expenses, when players tried to withdraw they went bankrupt. Last I heard there was another company who was willing to step in and payout the users, probably in exchange for the user database itself but I don't know that to be fact. The point here is that without clearly showing and proving the amount of DFSCoin available to cove prize pools gaining the publics trust on a massive scale would be difficult.
The other reason for needing DFSCoins available to cover prize pools is as a promotional tool. We will be hosting Guaranteed to Start contests and tournaments on a semi regular basis with large prize pools, this was one of the most effect marketing tools for companies like DraftKings and Fandule allowing them to take over the DFS market in the US. If we are expected to compete in any way for market share then we need to have the same tools.
The final remaining amount will be help in treasury for 2 purposes, 1 we need to offer B2B clients DFSCoins without them having to jump through too many hoops, it must be as simple as possible i.e. you give us some form of payment and we give you DFSCoin to be used on your site. This is a must for mass adoption across businesses, those B2B coins will eventually be sold and those clients will need to go to the open market to buy coins once that happens.
The second use for the DFSCoin held in treasury is for possible mergers and buy outs. M&A activity in DFS is a real thing, you can google the most recent paddy power deal and you'll see what I mean. Like all coin devs we hope our coin will be more and more valuable over time. Being able to buyout other fantasy sports sites and their user databases would allow us to grow at a faster rate.
An important thing to understand is that when we sell DFSCoins either direct to the public for use on the site or to a B2B clinet the proceeds from that sale are going back to the project to further promote our sites and gain more users not for the personal use of any member of the team.
You may have noticed on our deposit page a bitcoin deposit option that says coming soon, we will be removing that option all together later and forcing users to go to an exchange to buy coins, our only concern is that we are trying one again to make it as easy as possible for end users to get DFSCoins for mass adoption, at least initially. If that option is kept on the site it will be short lived since we mainly need the coins for the prize pools and B2B clinets.
If it is reintroduced to the site the coins sold and the bonus coins if any given would need to come from DFSCoins collected from rake or the site profits. Since the team will be sharing in the net profits from contests and eventually the team will need to sell some coins, you know to eat and stuff, this may be a better option for the team rather than getting their profit share and having to sell on the open market. But this is talking way down the line 12 to 24 months from now, then and only then would the team generate income from sales of DFSCoin on the site. But in that is more like a direct trade BTC for DFSCoin the team as rightful earned if that makes since.
