My most recent idea of how to obtain a fair PoS distribution (along with solve some of the issues with PoS cryptocurrencies):
It has been changed many times throughout this thread, so a lot of the OP/earlier posts can be ignored unless you want to see how the idea was formed.
A. Far advance warning of an cryptocurrencies' distribution/fundraising, with a clear objective and roadmap for the project and a set timeframe for the distribution/fundraising.
B. A working closed source beta, to be open-sourced after the original distribution period
C. PoW distribution (50% of the genesis stake)
Ca. Use several different mining algorithms, with each having an their own separate difficulty and the same chance to find the next block (implemented in several coins.. MyriadCoin was the first)
Cb. Use at least one algorithm per different types of mining hardware (one for Scrypt ASICs, one for SHA256 ASICs, one for CPUs, one for ATI GPUs, one for NVIDIA GPUs, etc..)
Cc. The point of this is to allow people with all types of minin hardware to participate so it is inclusive of everyone.
D. A regular IPO distribution (50% of the genesis stake)
Da. This is to allow people to participate in the initial distribution that do not want to hassle with mining equipment.
E. Launch said closed source beta into the wild after the distribution/fund-raising has occurred and switch to PoS
F. To mitigate claims of having an unfair PoS distribution to early insiders...
Fa. Have an annual block-limited PoW period that issues more coins to PoW miners.
Fb. The amount of tokens mined in the annual PoW periods should be reduced each year until eventually there is only a small amount of coins issued annually in perpetuity (aka. a tail emission).
Fc. This is intended to mimic the block reduction scheme and distribution of most PoW currencies, but with an added tail emission.
The post below contains the original idea...I started a similar thread the other day in the "Project Development" subforum, but was met with anti-PoS trolls and I subsequently locked it. This new thread is self moderated and any off topic trolling will be deleted. Please stay on topic. This was my original post:
One of the biggest grudges people have with purely PoS coins are that the coins are unfairly distributed. Side note: I don't agree with this line of thinking, as everyone has a chance to invest in IPOs if they'd like. This same argument could also be applied to early adopters of Bitcoin... but I am getting sidetracked. I think it is a shame something as silly as this could hold back purely PoS coins, as I feel they are a step up from purely PoW coins which consume much more energy to secure their block chains and waste processing power.
Now that "Oracles" can confirm real world data, would it be possible to do a recurring IPO for a purely PoS coin? I feel like this would solve the problems people have with "unfair" distribution. The way I envision it there would be an initial IPO, and then one every year after that as determined by the oracles. The amount of IPO coins should be slowly reduced like Bitcoin's block reward. Using something like Oracles, the current price of the coin could be determined to figure out how much the IPO coins should cost in the recurring IPOs, or they could be sold at the original price (this may affect the market negatively and I'm not sure of the best approach.)
So, it'd go something like this:
1st IPO = 5,000,000,000 coins @ .0001
2nd IPO 1 yr later = 2,500,000,000 @ current market price or original price
3rd IPO 1 yr later = 1,250,000,000 @ current market price or original price
4th IPO 1 yr later = 625,000,000 @ current market price or original price
... so on so forth ...
I have a few questions. I am not a developer, so would something like this be possible or is it just a pipe dream?
Would this idea even make sense to due to market variables? I'm thinking maybe it would be more fair to just keep the recurring IPOs at the original price of 0.0001, but it would affect the market.
Are recurring IPOs even possible?
Any other ways you guys can think of to improve distribution of IPO/purely PoS coins?
Obviously the money supply numbers could be changed, I just started with a random number but I feel like 5 billion is too much to start with. Maybe something around 21 million like Bitcoin would be a good place to start or less. I feel like they got money supply and the rate of inflation then deflation right in Bitcoin, so it should be closely modeled after that. The time in between the IPOs could be changed as well if you wanted.
After thinking it over a bit more, I think instead of funding the IPOs with a crypto currency, it might be better to adopt a Vericoin-like PoW distribution for each of the IPOs (I suppose the initial IPO could be funded if you wanted to without any complications.) See more about Vericoin here:
https://bitcointalk.org/index.php?topic=602041.0This solves the conundrum as to what the price of the recurring IPOs should be, and further decentralizes distribution.
I suggest using an algorithm that does not have ASICs yet, as this will further increase the decentralization of the distribution (x11, keccak, dagger (ethereum), proof of primes, etc.) IF an ASIC is developed for the algorithm used before the recurring IPOs finish, I suggest hard forking it to use an algorithm that does not have ASICs for fair distribution. I decided it is more fair to allow Scrypt and SHA256 ASICs to participate using a Vericoin-like approach.
You can then take this a step further if you were to take a Vericoin-like approach, by allowing different algorithms to hash simultaneously and each have the same chance of finding the next block as any other algorithm. I think to be as fair as possible Scrypt and Sha256 should be included even though there are ASICs on the chains. All algorithms should have an equal chance of finding the next block due to setting different difficulties for each algorithm. There should be at least one GPU and CPU mineable algorithm as well. This allows everyone to participate whether they have ASICs, GPU rigs, FPGAs, or CPUs. Allowing everyone to participate is important I think and I like Myriadcoin's approach here. You could use a single algorithm, but that would limit the amount of participants in the "IPOs." This was a great idea invented by Myriadcoin and is a neat twist on PoW coins. Check out Myriadcoin here:
https://bitcointalk.org/index.php?topic=483515.0The developer/inventor of Oracles (Kolinko) contacted me via PM sad that I had locked the old thread. Since he shared new information, I decided to start a new one (since I can't figure out how to unlock the old one & a self moderated thread is better to keep this on topic.) This is what he had to say:
Hi,
Too bad you locked the thread
![Sad](https://bitcointalk.org/Smileys/default/sad.gif)
You might want to check out our paper:
https://github.com/orisi/wiki/wiki/Orisi-White-PaperIt would be quite easy to do using oracles. The most straightforward way would be to essentially premine all the coins, and give M of N access to a set of oracles. Then program those oracles to release coins according to schedule and external inputs.
With little modification Orisi framework could be used for that. The biggest challenge is of course deciding who handles oracles, and what program the oracles run (e.g. who decides what datafeed is being used). There's also a challenge of modifying the list of oracles. I.e. one of the oracles belongs to a guy who revealed himself as a scammer, or someone lost keys to the oracles, and the rest of the nodes has to vote a new oracle in his place.
Visit our forums for more information or to ask questions: orisi.net
I'll point him to this new thread so that the conversation can continue. So, it seems that it is possible to use oracles for this purpose. IMO this is a better distribution model for purely PoS coins.
Do you guys have any opinions or ideas to improve upon this or how it could be done on a technical level? There are still some things to work out obviously. I feel like their could possibly be market implications by doing recurring IPOs, and the technical details need to be figured out.