What is the 'fairest' way to distribute a currency?

[mczarnek]

Some of these IPO currencies have received a lot of grief over it being unfair the way they were distributed.

Why is mining any more fair when early adopters can mine a lot more than later adopters? (very similar to an IPO.. except later adopters have to purchase the currency for higher rates)

So, what do you think is the most fair way to distribute a currency.. not necessarily run it but initially distribute it.

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[dasource]

Define 'fair'?

[BitJohn]

Mining but with stagger block rewards starting at 0 and going to the eventual actual block reward then going back down over time is probably the fairest. Good examples would be WDC and DGC if you look at their charts its a nice smooth line over time. Both could be improved upon.

Almost forgot and a good lead time up to the announcement with wallet readily available from multiple locations.

[TaunSew]

Something issued to everybody is not fair in the long run, this is called an air drop and the end result is all the money flows to a few swindlers.   When you make something near worthless - people will give it up within a heart beat and this what results to concentration in an air drop.

 Eastern Europe had an air drop in the 1990s called the privitization vouchers (which the masses traded up for vodka and snickers - true story) and the end result was that a few Oligarchs got immensely wealthy at the expense of everybody else.   Digital currencies saw their own version of an air drop called Aurora and the country coins and people lost fortunes and a few people got rich overnight.



PoW is never fair because it has technological, technical and $capital requirements.   PoW is essentially a private IPO which in almost every coin results in whales due to instamining.


The fairest distribution in crypto history has been NEM.  True 7 billion people missed out on it (giving coins to that many is an air drop, see above).   The difference about NEM is that in a distribution of that scale there is no nepotism or cronyism - any stranger that was active in January-February of 2014 had a good shot of getting in as it was widely publicized at the time and the buy in cost was superficial.  I don't know any of the NEM developers on a first name basis or anything of that sort, but yet me (as a stranger) was able to get in.  This is compared to the typical alternate which has a distribution under 50 and you have to wonder how many of them are connected to the developers (friends?  relatives?  acquaintances?).

Was NEM 'fair' to people who missed the distribution period?  Well it is more like "inconvenienced" than 'unfair'.  That being said, NEM's distribution was not intended to be a planetary relief scheme but to prevent whales that we see in virtually 99% of alternates (whale to me is something who controls at least 2% of a coin or more).

[kelsey]

Mining but with stagger block rewards starting at 0 and going to the eventual actual block reward then going back down over time is probably the fairest. Good examples would be WDC and DGC if you look at their charts its a nice smooth line over time. Both could be improved upon.

Almost forgot and a good lead time up to the announcement with wallet readily available from multiple locations.

fair from the tiny subgroup of mining within the btt memberships perspective  for the rest of the world maybe not so 

in any case does any initial distribution method change the distribution outcome once a crypto can be exchanged for fiat (even if via btc)?

[TaunSew]

Mining but with stagger block rewards starting at 0 and going to the eventual actual block reward then going back down over time is probably the fairest. Good examples would be WDC and DGC if you look at their charts its a nice smooth line over time. Both could be improved upon.

Almost forgot and a good lead time up to the announcement with wallet readily available from multiple locations.

fair from the tiny subgroup of mining within the btt memberships perspective   for the rest of the world maybe not so  

in any case does any initial distribution method change the distribution outcome once a crypto can be exchanged for fiat (even if via btc)?

Roger Ver was not in the initial distribution but he bought in at $1 and he still has 100,000 BTC (he was able to buy this due to already being a quasi $Fiat millionaire at the time due to his computer company).


Theoretically, with the exception of lost or forgotten wallets, it is presumed at some time that most of the initial wallets of Bitcoin or any alternate will cash out for $Fiat (especially if the holder is stuck in a McJob or in some uninspiring middle class grind existence).

but there will always be whales like Roger Ver, who already have enough $Fiat in the bank, who'll hold to the grave like many world billionaires already do.


 

[HI-TEC99]

It must have been very difficult to tell the difference between NEM and one of the many scam IPOs when it was distributed. There was no wallet available, and how many times have you heard a "dev" asking for small payments for a stake in his new coin that turns out to be a scam. It's hardly fair if you are asking people to risk a small amount of money for a stake when there have been countless rip offs here asking exactly the same thing.

[kelsey]

Mining but with stagger block rewards starting at 0 and going to the eventual actual block reward then going back down over time is probably the fairest. Good examples would be WDC and DGC if you look at their charts its a nice smooth line over time. Both could be improved upon.

Almost forgot and a good lead time up to the announcement with wallet readily available from multiple locations.

fair from the tiny subgroup of mining within the btt memberships perspective   for the rest of the world maybe not so  

in any case does any initial distribution method change the distribution outcome once a crypto can be exchanged for fiat (even if via btc)?

The distribution outcome, with the exception of forgotten or lost wallets, is at some point those initial distributed wallets would be exchanged for $Fiat - after all, if you have $10+ million in some crypto currency and you're stuck working a McJob or have some uninspiring middle class existence - you're going to be tempted to cash out at least enough to escape the grind.

Thats the thing 90% of crypto users (and 100% of newbies) are more in it for the fiat then any real interest in cryptos.....but guess that comes with the territory.

[TaunSew]

It must have been very difficult to tell the difference between NEM and one of the many scam IPOs when it was distributed. There was no wallet available, and how many times have you heard a "dev" asking for small payments for a stake in his new coin that turns out to be a scam. It's hardly fair if you are asking people to risk a small amount of money for a stake when there have been countless rip offs here asking exactly the same thing.

I'm not familiar with any of these examples.  Maybe some could had happened in 2012 or 2013 but I wasn't really around.  NEM was the first time I saw anyone attempt that sort of distribution and they had 3000 send in funds (most of them being rather trivial, like under $20.  This is compared to most alternates where you are pressured to invest at least 1 BTC to get any decent amount).

[kelsey]

It must have been very difficult to tell the difference between NEM and one of the many scam IPOs when it was distributed. There was no wallet available, and how many times have you heard a "dev" asking for small payments for a stake in his new coin that turns out to be a scam. It's hardly fair if you are asking people to risk a small amount of money for a stake when there have been countless rip offs here asking exactly the same thing.

IPO = scam 100% of the time imho.

[kelsey]

It must have been very difficult to tell the difference between NEM and one of the many scam IPOs when it was distributed. There was no wallet available, and how many times have you heard a "dev" asking for small payments for a stake in his new coin that turns out to be a scam. It's hardly fair if you are asking people to risk a small amount of money for a stake when there have been countless rip offs here asking exactly the same thing.

IPO = scam 100% of the time imho.

Yeah that is often the case or you're severely overpaying for something that should be free-ish.

In the real world 99% of IPOs are typically held by companies which have tangible products, services or intellectual properties.   IPO for coins which don't exist (especially when demanding huge amounts of money) = scam


I'm reminded of this notification I received about NEX.. apparently they want me to spend $500 when only 5% of the coin is being distributed, so who gets the other 95% except for the developer?    (who gets 95% of the coin and then all the BTC money on top!  Absolutely insane!).

I think you'll find also (having personally communicated with sec officials) that any exchanges listing IPO type coin are really playing with fire, and sooner or later (all have been off secs radar to this point) some will be made examples of (something lost on most the btt crowd).

[BitJohn]

Mining but with stagger block rewards starting at 0 and going to the eventual actual block reward then going back down over time is probably the fairest. Good examples would be WDC and DGC if you look at their charts its a nice smooth line over time. Both could be improved upon.

Almost forgot and a good lead time up to the announcement with wallet readily available from multiple locations.

fair from the tiny subgroup of mining within the btt memberships perspective  for the rest of the world maybe not so 

in any case does any initial distribution method change the distribution outcome once a crypto can be exchanged for fiat (even if via btc)?

Fair because in doing the work you reap the reward. "Work" is what make wealth so its the most fair everyone has the opportunity if they choose not to take it that is up to them.

[Nxtblg]

I think you'll find also (having personally communicated with sec officials) that any exchanges listing IPO type coin are really playing with fire, and sooner or later (all have been off secs radar to this point) some will be made examples of (something lost on most the btt crowd).

That's what I'm anticipating sometime down the road, although the SEC's lawyers might have to do a bit of legerdemain because cryptocurrencies are defined by the tax authorities as regular property. By this standard, an "IPO" of a regular crypto is nothing more than a pre-sale like buying (say) Windows 9 before Microsoft releases it. Etherium's legal beagles are right on that point; myself, I think they lawyered up because they were afraid of lawsuits instead of regulators.

But that said, the definition of a "security" - at least in the province of Ontario, where I reside - is broad enough to get a lot of people around here into trouble. I'd peg this as a long-range developing story...

[HI-TEC99]

I know IPO sellers might be risking some sort of prosecution, but are IPO buyers safe from any kind of prosecution anywhere?

[cosmoo]

POW with long term reward reductions.

Myriad is a good example, block halvings every year, no premine, no instamine, 1000 coins minted every 30 seconds. Price is floored at 50 sats and is hard for whales to manipulate. THAT'S fair.

Fairness means the price ISN'T volatile. When will you people learn 

[mczarnek]

Why is a decreasing block reward 'fairer'?  Wouldn't it be better to have an increasing block reward due to those getting onto the coin later on mining fewer blocks due to an increased number of people mining them?

Let's say fairer means more evenly distributed.  If you could get 1 unit of currency into the hands of every person out there, it would be ideal.

AND not have them dump it on the market the way Auracoin happened because they didn't need to risk anything to buy them.

[liquidfunds]

of course mining by CPU or GPU.

[devphp]

Did anyone mention Auroracoin yet?

[gustav]

fairest distribution is the good old long term mining schedule.

[devphp]

fairest distribution is the good old long term mining schedule.

And that, my friends, would be Myriadcoin. No other coin features a more fair distribution through mining. But looking at how unpopular Myriadcoin is one cannot help but conclude that nobody is actually interested in fair distribution. Hence, all these thousand threads on fairness are completely pointless.