giveaways & premine are BAD FOR MINERS

[drakoin]

D: I perhaps want to sell 50000 DGB, if your offer is good.
S: 0.025 LTC
D: I sell 50k DGB for 1.5 LTC, or 0.0433 BTC.
S: Sounds insane, giveaway thread just started.
D: And your offer is insane, because I wouldn't even get the electricity money back for my mining. Make a better offer.

[drakoin]

Some thoughts to coinmakers:

• IF you think you need a premine, then do not throw it all out in the first days. You destroy the price of your coin.
• Why would you give out more coins per person per day in a giveaway, than 1 MH of mining can make?
• Why would I mine at all, if begging in the forums gives me tenfold?

.

• I can already not afford mining new coins anymore without also begging. I would rather prefer to mine, and get a decent price for the coins that I generated
• It needs a balance. Between coinmakers, miners, service providers, translators, etc. - ...
• AND the dumm-users who just download the client, generate an address, and then post "me too, here's my address: DJsRVr56TRHNQYbKymm9QMxeL588o6g58V Thanks" (that's DGB Digibyte by the way, please tip me - but for this work here, not for nothing)

.

1MH of hardware costs ~700(?) Euros, and 3 Euros of electricity per day.
If you give out that much to beggars, it's just spitting in the face of small miners.

Or:

• Begging becomes the main income stream for your coin. You create a beggar's coin.
• Only very large mines will be able to afford to mine your coin.
• And when they leave, your coin is rotting, stuck on high difficulty.
• with concentration 51% attacks are more likely than if you get thousands of smaller miners committed.

But that needs a good price for your coin. At least in the first weeks.


DO NOT DUMP TOO MUCH OF YOUR PREMINE IN THE FIRST MONTH.

[taher]

i agree giveaway and premine are bad for miners.
if the dev team needs to arrange a giveaway/bounty they can buy from early miners then arrange it.
and giveaway should be arranged for the miners... not for everybody on the planet.

[Armando]

For miners - maybe, but coins will be useless without other users. Giveaways are helping to attract attention, form some community for the coin. From the other hand, coins with huge giveaways (like DIME for example) seems to become worthless fast, so I believe giveaways can help to popularize coin only if used moderately.

[kalus]

i agree giveaway and premine are bad for miners.

i'm a miner, and that's a limited view. try to take all the coins for yourself, and you'll end up with worthless coins.

miners won't be able to make jack shit off their efforts unless the coins are heavily promoted and used.  

miners alone won't put coins on exchanges.  

devs may not be able to compile wallets for 3 different major OSes, nor be able to respond to 0 day problems and run multiple pools singlehandedly.  

I know how easy altcoin promotion was last week, but this week for coins to survive it will take a lot of flogging and graft to get people to notice yet another shitcoin.  

[salsacz]

miners are like dinosaurs

new cryptocoins don't need miners

[Berric]

The giveaway of DGB is too much.50000 per user. I mine only 100000/day by 2000KH/s.

[jdebunt]

Giveaways aren't completely negative though, but you can read more about it on www.cryptoarticles.com  later today

[Johnster03]

I also complained in the official DGB thread.

The founder now confirmed in the thread and also via Facebook that the maximum giveaway amount from now will be 1k DGB.

[hasar]

Can I mine with i3 PC? It's my second month in crypto world. I have no idea how to mine.

[Nullu]

The scarcity priciple: the harder they are to get and the higher the demand, the more valuable the commodity. Most coins fail in raising both at the same time.

[hasar]

This might be true. Cause it's my first month in bitcontalk and I'm already altcoin millionaire.

[CoinManiac]

Miners are the ones who dump the maximum coins. Besides everyone can't have a mining rig to mine coins.

So giveaways should be promoted, otherwise who cares about catcoin, dogecoin or batcoin if one have to buy for BTC.

Let the people decide what they want for themselves. Why not create a poll and c the results.

[martins]

the first 2-5 days of a coin in exchange it's to buy becouse every little miner want to cash out and mine another alt so you can see the prices floating under it's value in the first week, IMHO buy and if you already calculate it's price do it with foot on ground!

[sammy007]

D: I perhaps want to sell 50000 DGB, if your offer is good.
S: 0.025 LTC
D: I sell 50k DGB for 1.5 LTC, or 0.0433 BTC.
S: Sounds insane, giveaway thread just started.
D: And your offer is insane, because I wouldn't even get the electricity money back for my mining. Make a better offer.

Wow, HI =) S = Me.

By the way, I am miner. And I agree that such huge giveaway was a mistake.

[bittick]

but giveaways are needed to spread the network of the coin around to make it stronger.
the amounts they give out should be small though

[motatoys]

another cry baby

[drakoin]

Interview with the DigiByte team, JANUARY 16, 2014

One thing that surprised us was that people actually started complaining that we were giving away too many coins. We realized they had a valid point, and that in order to build value in the coin we needed to stop.

http://www.followthecoin.com/interview-digibyte-team/

[cremstopper]

I think giveaways are the best way to get new people aware and excited about a new coin

[drakoin]

D: I sell 50k DGB for 1.5 LTC, or 0.0433 BTC.

I guessed the price alright, it's at 103 Satoshis now, 50k DGB => 0.0515 BTC

You should have bought from me, S. :-)