Following on from a chain of threads: How should coin developers be remunerated?, followed by Non-IPO project funding?, and further discussion on the Bitmark thread.A common issue [POW] coin developers face, is how to fund the project both initially, and long term.
We have a simple proposal, we will call it Initial Public Mining.
First, we establish three things:
1. The startup amount required for developers and resources.
2. A foundation fund % to support long term development.
3. A ratio of investment from miners and investors.
For example in Bitmark's case, we have:
1. 0.6 BTC
2. 5% to a cap of 70,000 BTM (0.25% of the total coins minted)
3. 35% tbd.
We the open an "IPM", where investors can choose how much BTC they want to invest in the project.
The startup amount (1) is taken from the top of the amount required.
The remainder of the BTC acquired is then used to fund hired mining rigs on the network on a daily basis rated at 35% (3) of the hash power of the network.
5% (2) of the coin generated by the hired mining rigs is sent to the foundation fund.
The remainder (95%) of the coin generated by the hired rigs is split between the investors according to how much they invested.
This way the network is supported, the IPO is limited to a reasonable amount, the coins distributed fairly between investors and miners, start up funds are secured, the project secures long term funding and therefore development incentive.
Has this been done before, any comments or discussion?
We have not yet decided on whether to do this for
Bitmark or not, but we may after discussing here first.
