[Wanted] Developer For New Altcoin Project Backed By Hashing Power

[Warren]

I have an idea for a new Altcoin and I am looking for a programmer with crypto currency development experience.

This won't be your average "pump and dump" scam coin, but something that really has to work long term, so if you are going to suggest changing 10 lines of code and create a new logo this is not a project for you...  

The main feature of the coin is that each coin will be backed by mining hashing power. Therefore each coin needs to function like a mining share.

Each coin (or block of coins) will be awarded a regular dividend payment depending on the amount mined by the mining network that is backing up the coin. This mining network will grow constantly, (as we sell more coins), so the hashing power backing each coin will increase, with the intent to keep up with the difficulty increases as far as possible.

Most or all of the coins will be probably be pre-mined or perhaps built on NXT, Namecoin, Mastercoin, Ripple or something similar? This is where we need someone with a lot of experience who can give advice on the best route to take.

Since we will make a significant investment in the mining network prior to launching the coin, (in order that the coin is already backed to a reasonable guaranteed minimum level before the launch), it is crucial that we don't run the risk of a 51% attack. There would be a financial incentive to try to hack/attack the coin/network as each coin is rewarded regular dividends.

To complicate things further, original coin investors will also be rewarded for recruiting new investors to buy the coin, on two or three levels, to speed up growth and adaption from new users. So we need a way to accurately track referrals on at least two levels, perhaps three.

If this sounds like something you could help us with please PM me with some information about your knowledge and past experience. We can then discuss further details and compensation etc.

I look forward to hearing from you!  

[Warren]

Reserved for clarification.

1. When I say that the coin is "backed by mining hashing power" I don't mean the coin itself is being mined with that hashing power. What I mean is that there is a mining network that is mining for other coins and the revenue generated from that mining is backing the coin. So let's say each coin was backed with 1 GHz for example, then the person owning that coin would get the revenue associated with the income from the mining that 1 GHz would generate. The second month each coin might be backed with 1.3 GHz as the mining network behind the coin has grown.

[olsn]

But wouldn't that be a centralized system? Like one huge single mining-pool controlled by one person (or a very few)?

[Warren]

But wouldn't that be a centralized system? Like one huge single mining-pool controlled by one person (or a very few)?

Yes it would need to be centralised, as dividend payments would need to be handled by us, (unless someone has a good idea of how we could get dividends to be handled by a trusted third party instead?)...

We would also need to sell the the majority of the coins ourselves, as the income from these sales is what would allow further investment into the mining network beyond the minimum level that we guarantee at the launch of the coin.

The main benefit for users over something like cex.io is that the buying and selling of the coins doesn't have to be through a centralised exchange. People could trade these coins anywhere and in any way they wish P2P once they own them.

Another benefit of this new coin is that when you buy 1 GHz on cex.io for example you get only 1 GHz, and you know that the value in terms of mining revenue from that 1 GHz will only ever go down as difficulty increases. With our coin you know the minimum level of hashing power it is backed by with at the time of purchase, but this will increase in the future.

You can then calculate the ROI on each coin yourself depending on the price you are paying, and determine if the amount of backing offered is enough to make you want to buy the coin... Although here you will also have to look at the history of how the hashing power has increased over time and take that into your calculation when determining if you will get a good ROI.

The main idea is that whilst the currency is gaining traction and more and more users invest you will also be paid a dividend for your investment risk. With all the other Altcoins you are only investing with the hope that the price will rise based on more people buying into it, until it gets enough traction to actually become a useable currency like Bitcoin.

With this new currency there is a second incentive to hold on to it. The dividend payment generated from mining.

Even if it "fails" in the sense that it never gains enough traction to become usable as a normal payment method, you might still get a decent ROI over time.

So what do you think?

[NicholasB54]

To complicate things further, original coin investors will also be rewarded for recruiting new investors to buy the coin

Where I'm living that, I believe, is the essence of a pyramid scheme and illegal

[Warren]

To complicate things further, original coin investors will also be rewarded for recruiting new investors to buy the coin

Where I'm living that, I believe, is the essence of a pyramid scheme and illegal

My understanding of what defines a pyramid scheme, (in most countries anyway), is that a pyramid scheme generally offers no real product or service.

In a a pyramid scheme there is no way for the people at the bottom of the pyramid to make any money. The only way to make money in a pyramid scheme is to sign-up new members for a fee...

With my proposed coin the majority of the income (for most coin investors anyway) is going to come from the dividend from the mining shares that are attached to each coin.

The fact that there is also a way to earn money (on two levels instead of one), from introducing the coin to others doesn't make it a pyramid scheme...

If that is a serious issue it is not even a central part of the idea, and could be scrapped completely.

I only considered it a way to increase the adoption rate quicker. We could, (just like cex.io does) offer a normal one-level affiliate program for those who want to take part in that.

I know that most people here (and a lot of "intelligent" people in general), have a negative view on MLM of any kind. Probably this comes from past negative experiences or from hearing horror stories of unethical MLM companies...

I have personally never had any involvement with multi-level marketing, (apart from being dragged along to a couple of Amway meetings by enthusiastic friends a couple of times many years ago), but I do think it can be a very good way to recruit a large customer base quicker than normal, as past customers have an incentive to promote your products.

Some people even go as far as considering any affiliate marketing to be a scam! Since I have made most of my money from (ethical) affiliate marketing over the last 13-14 years and it has been the foundation for my business I obviously don't share that view...

[olsn]

I don't think the pyramid scheme is the issue here(if there even is one)
A way bigger issue would be the fact that it IS in fact a centralized system - a centralized system is the complete opposit and against EVERYTHING bitcoin and cryptos stand for.

You should rethink that. I like the approach that everyone receives a share based on their hash-power - so basically this works like one single huge mining-pool.
However, if this works as a single mining pool, why should everyone invest their Hashrate into finding a block, if it doesn't even matter WHO finds the block, since the reward is share-based. You could in this case use the hashpower for actually usefull calculations (scientific, prime, SETI, molecular simulations, ect...) all those operations also return a messureable result, so the reward would be based on those calculated result shares.

[Warren]

I don't think the pyramid scheme is the issue here(if there even is one)
A way bigger issue would be the fact that it IS in fact a centralized system - a centralized system is the complete opposit and against EVERYTHING bitcoin and cryptos stand for.

That is true for Bitcoin, but not for all crypto currencies. There are other centralised solutions that are popular and that I believe will become very successful, such as Ripple for example.

You should rethink that.

I appreciate your thoughts on this, but this is kind of the whole premise of this idea.

You have clearly misunderstood the main idea of this coin.

I like the approach that everyone receives a share based on their hash-power - so basically this works like one single huge mining-pool. However, if this works as a single mining pool, why should everyone invest their Hashrate into finding a block, if it doesn't even matter WHO finds the block, since the reward is share-based. You could in this case use the hashpower for actually usefull calculations (scientific, prime, SETI, molecular simulations, ect...) all those operations also return a messureable result, so the reward would be based on those calculated result shares.

You have misunderstood how it would work.

The investors in the coin will NOT provide ANY hashing power at all, and they will not be able to control how the hashing power connected to their coins is used! Their only benefit from"their hashing power" is the dividends from the mining that their coins generates.

All the hashing power will be provided by the company behind the currency (who will direct it to mine in the most profitable pools in order to maximise the dividend per coin). So the company behind the coin will provide both the initial hashing power and the expansion of it, just like a cloudmining company would.

Each coin will be backed by a minimum amount of hashing power per coin at the launch, and this amount will not go down, it will only increase.

You need to think of each coin more like a mining contract with cex.io for example, with a couple of important differences:

1. Since it's a coin and not just a "contract" you can trade it anywhere and in any way you want, just like other coins. You are not forced to use a particular exchange provided by us or anyone else when you sell or buy coins.

2. A contract with cex.io is for a fixed amount of hashing power. They sell them by the Ghz as you probably know. Imagine that each coin sold by us is also backed with 1 GHz per coin.

The difference is that at cex.io the amount of hashing power you have bought will never go up...it stays the same. Therefore the value of those contracts will always go down over the longer term, as difficulty increases.

We will invest more and more into the mining network that is backing these coins, as we raise funds by selling coins.

So you have a coin that starts out with 1 GHz per coin for example, but after the first month that might have increased to 1.2 or 1.3 GHz as coins have been sold and we have therefore raised further funds.

One of the main points of having a fixed minimum (and increasing) amount of hashing power backing each coin is that there will be a "base value" for the coins that people can determine for themselves.

The idea is that this will provide some price stability and make the value of these coins less speculative than a coin whose value can ONLY increase if more and more people continue to buy into it.

For example, if the value of the coins would fall to a level whereby you could recover your investment (from dividend payments based on the hashing power) in a very short period of time, the value would automatically bounce back as the the reward is too high even considering he risk in the coin, and even if you have doubts about the long-term future of the coin.

In that sense I think some of the other "pump and dump" Altcoins are more closely connected with pyramid schemes than this proposed coin, (as Nicholas854 suggested because there would be a 2-level affiliate program attached).

I hope that clarifies the plans we have for this new Altcoin.

I would love to hear other peoples thoughts on this idea, and if there are any experienced coin developers reading this I would love to hear from you by PM!

[Warren]

Bump.

Still looking for some advice from an Altcoin developer on this.

[finist4x]

I also have ideas crypto coins " CORPcoin ".

My achievements are briefly here https://bitcointalk.org/index.php?topic=469062.new

   :::

[Warren]

I also have ideas crypto coins " CORPcoin ".

My achievements are briefly here https://bitcointalk.org/index.php?topic=469062.new

   :::

That was a link to a domain auction.

Can you expand on some of your ideas for this new coin?

[anderl]

Do you still plan on pursuing this coin?

[Warren]

Do you still plan on pursuing this coin?

Yes, I am still very interested in pursuing this and I have meant to get back to you. I have been in contact with several developers and am still waiting for a few replies...

There are some issues that I am not sure how to resolve such as the dividend payments. I appreciate your interest and will get back to you again shortly.

If anyone else have any thoughts about this idea, positive or negative, I would surely appreciate the input.

[anderl]

Do you still plan on pursuing this coin?

Yes, I am still very interested in pursuing this and I have meant to get back to you. I have been in contact with several developers and am still waiting for a few replies...

There are some issues that I am not sure how to resolve such as the dividend payments. I appreciate your interest and will get back to you again shortly.

If anyone else have any thoughts about this idea, positive or negative, I would surely appreciate the input.

Dividend payment should be a non issues in a distributed exchange (POS).  Will keep an eye out for updates to the thread.