Devs taking the role of a central bank?

[victor82]

Hi Guys,

I've lot of concerns about an alt coin (a Litecoin copycat), this coin is running from the last year September, and has been traded by a good volume (based on the local market, the coin is only used in a local context).

The problem is that the devs want to change the supply params to make it scarse, the current max supply is 123.456.789 and they want to cut it down to 9.672.777, and the theoretical max daily coinbase supply now is 14.400 and they want to cut it down to 2.160.

Of course, the devs, owns an important percentage of the current supply.

I had never seen a change in supply parameterization like this, the main idea is to raise the price of the coin because there is not more purchasing power anymore as you can see in this chart of the last 2 months:

https://i.imgur.com/CyTF0c5.png

The coins is only traded in a very local context, and people don't seems to have concerns that the devs takes the roles of a central bank too, moreover, they are doing a survey on telegram about this change, which of course everyone involved want their coins to have more value.

What do you guys think about this? do you know any similar case?

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[jseverson]

Seems like a shitty thing to do. Devs should be worrying about the quality of their project, not the price. If this move has nothing at all to do with utility, which seems to be the case given the facts you've shared, the devs might be positioning themselves for a pump and dump. That's just my two satoshis though.

[BartS]

Hi Guys,

I've lot of concerns about an alt coin (a Litecoin copycat), this coin is running from the last year September, and has been traded by a good volume (based on the local market, the coin is only used in a local context).

The problem is that the devs want to change the supply params to make it scarse, the current max supply is 123.456.789 and they want to cut it down to 9.672.777, and the theoretical max daily coinbase supply now is 14.400 and they want to cut it down to 2.160.

Of course, the devs, owns an important percentage of the current supply.

I had never seen a change in supply parameterization like this, the main idea is to raise the price of the coin because there is not more purchasing power anymore as you can see in this chart of the last 2 months:



The coins is only traded in a very local context, and people don't seems to have concerns that the devs takes the roles of a central bank too, moreover, they are doing a survey on telegram about this change, which of course everyone involved want their coins to have more value.

What do you guys think about this? do you know any similar case?

The job of the devs should be to develop the coin and unless they can explain how having a smaller supply of the coin helps the development then this is a bad idea its clear they are doing this out of an economic motivation and the supply of the coins is something they should not be play around once it is established, look at bitcoin increasing or decreasing the max supply of the coin will be a disaster since that will mean the value of bitcoin can change by the whims of some people and that is a clear sign of centralization something we are trying to avoid.

[victor82]

It's turning worse, another local coin apply a supply change of a 40X less in the coinbase generation for a year, and of course the dev have a lot of it premined.

Is a shame what is happening in my country, people are going to lose the credibility of cryptocurrency because of this.

[rodalutor]

Developers should be developers and not concerned with the price of the coin within reason. In theory reducing the supply will have no effect whatsoever. If everyone's coins are traded in at a ration of 10:1 then they'll just end up with 10% of the coins they had and they should be 10 times the price.