Creation of a fully mined currency

[tagbond]

I am investigating the idea of creating a fully mined crypto currency, with issuance of 100 billion coins at par value of 1c each, which we would give or sell via our rewards site. We need to create a universal rewards currency and this seems to fit the bill for us. We are using Bitcoin, LiteCoin, real currency as well, but just looking at something else to fund future growth and give some value to the points system. I know we can create an internal points system, but I want it decentralized...

Could anyone give any pointers on the technical problems, adding in a permanent 1% transaction fee for transaction processing, 51% attacks, etc etc.

[zackclark70]

I am investigating the idea of creating a fully mined crypto currency, with issuance of 100 billion coins at par value of 1c each, which we would give or sell via our rewards site. We need to create a universal rewards currency and this seems to fit the bill for us. We are using Bitcoin, LiteCoin, real currency as well, but just looking at something else to fund future growth and give some value to the points system. I know we can create an internal points system, but I want it decentralized...

Could anyone give any pointers on the technical problems, adding in a permanent 1% transaction fee for transaction processing, 51% attacks, etc etc.

a similar thing has been done before search the forum for trade coin

[Hazard]

Shoot me a PM if you need any work on this done, or at least consultation.

(I'll give you a hint, don't use PoW)

https://bitcointalk.org/index.php?topic=208578.0

[Shad3dOne]

Hasn't this already been done?... i think its called Ripple.

[ilostcoins]

Tradecoin tried this. You can search this forum for information.

[tagbond]

I looked at tradecoin, and it doesn't seem to be going anywhere, nor is it backed by any kind of value system. We are already implementing the use of BitCoin, LiteCoin, USD, GBP, EUR and PHP - for Philippines we have to be Electronic Money Issuer Licensed (which needs 2.5m dollars in paid up capital and regulation by the Central Bank. We are going through that process now). For Europe, same but 350k Euros in paid up capital, which we will do within a few months.

Within the system, anyone can set up a community, with modules for sales, rewards, marketing, etc - so we have elements of groupon, google adsense and paypal all rolled into one. Anyone can set up a merchant account to sell products or give rewards in cryptocurrency or real money, but for cryptocurrencies there are very few regulations, even here in Philippines.

Ripple is not the same thing, nor can we rebrand it for ourselves - I am looking at colored coins as well. Part of this is having a Vanity Coin and partly because we can give value to it and initially have some kind of control, although being decentralised the currency can go anywhere and be used for anything. We have an open API so people can build solutions on top of our system.

We are looking at this as funding for the future, as well as giving something of value that is transferrable instead of just "airmiles" or "rewards points" that can only be closed loop (although using Tagbond you can do that as well).

If it is too much hassle, then we will stick to existing currencies - just exploring the ideas right now.

[ilostcoins]

The problem with a fully premined currency is how to distribute it to other people. Currency gain it's value from having a lot of different holders.

If you have something like an international bank with 100 million clients, you have the apparatus to verify people's identity and distribute your premine to them. The bank in this example can keep, say 10% of the premine as profit and hand out the rest to it's 100 million clients. I believe this can instantly create a far more successful coin than bitcoin because a coin with 100 million stake holders can easily beat one with may be a million or even fewer.

Since there is no proof-of-work (POW) mining to record transactions, proof-of-stake (POS) is a must. This is also a problem with Tradecoin as it didn't incorporate POS.

If nothing else, such a pure POS coin is a good experiment to see if POS on it's own is secure enough.

[Lauda]

It will fail.

[ronimacarroni]

Cryptogenic Bullion is close enough. 
There will be 1 million by the end of 2013 and only 0.5% will be available for mining thereafter with a 2% annual POS.

[tagbond]

Cryptogenic Bullion is more of a commodity, and I need more velocity with a fixed value per coin...

I have been reading up on MasterCoin, trying to get my head around it - it seems that would solve a lot of my needs, and it uses Bitcoin as well...anyone done anything technical with Mastercoin that could help my feeble brain understand it more?..

[tagbond]

The problem with a fully premined currency is how to distribute it to other people. Currency gain it's value from having a lot of different holders.

If you have something like an international bank with 100 million clients, you have the apparatus to verify people's identity and distribute your premine to them. The bank in this example can keep, say 10% of the premine as profit and hand out the rest to it's 100 million clients. I believe this can instantly create a far more successful coin than bitcoin because a coin with 100 million stake holders can easily beat one with may be a million or even fewer.

Since there is no proof-of-work (POW) mining to record transactions, proof-of-stake (POS) is a must. This is also a problem with Tradecoin as it didn't incorporate POS.

If nothing else, such a pure POS coin is a good experiment to see if POS on it's own is secure enough.

Well, we have a membership and rewards platform, with an open API, so having a few million people using it will happen very quickly - that's just in the Philippines where we are based, never mind anywhere else in the world. People here are used to electronic currency (GCash and SmartMoney, TagCash), and they are also used to closed loop shopping points rewards (SM Advantage) - we will have millions of customers here within a year, so I am looking to combine the 2 to offer open loop redeemable rewards currency... The same rewards points are used to pay affiliate fees for sharing coupons, deals etc and to charge for services and products for any company on the platform...Just have to figure out the best fixed rate, decentralised currency to use for this.

[markm]

Maybe clone a Ripple of your own?

-MarkM-

[defaced]

This could be done very easily.

[tagbond]

Well..I have BTC to pay someone to set this up for me - my staff internally don;t have the time or the experience to do it. Since our system can cater for multiple cryptocurrencies, we can add another and see what the effects are. Give out a lot of it to get the market going, the same as we allow for closed loop currency, and see what happens...

We would want the value set at 1c, use POS, and have a transaction fee built in of 1% of 1c...

[zackclark70]

Well..I have BTC to pay someone to set this up for me - my staff internally don;t have the time or the experience to do it. Since our system can cater for multiple cryptocurrencies, we can add another and see what the effects are. Give out a lot of it to get the market going, the same as we allow for closed loop currency, and see what happens...

We would want the value set at 1c, use POS, and have a transaction fee built in of 1% of 1c...

if you are going to use POS please get someone like mullick to make it as most of the POS coins made by other people are broken

[tagbond]

Talking to a chap called Hazard - do you know of his work?...I will look up and contact mullick as well..thanks

[zackclark70]

Talking to a chap called Hazard - do you know of his work?...I will look up and contact mullick as well..thanks

hazard has made a lot of coins but as far as I know he has not made a fully working POS coin might be worth you doing some research

[tagbond]

Thanks for the advice...am now working on creation of a fully mined POS coin for our rewards site, and wil be putting it out for some testing shortly...

[icey]

Ripple and Tradecoin

[tagbond]

Too many difficulties and dislike of fully mined currencies, so will create a PoW/PoS Clone, with a small amount premined that we will give away as referrals on Tagbond and Tagcash. Will announce details when we launch it, with full specs.

As has been pointed out to me, building an ecosystem for any currency is the key, and we are working on that - we will probably also be building an exchange in the Philippines and will attempt to set one up servicing India. Interesting times ahead I think.