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Author Topic: GambleCoin - Alt Currency Idea  (Read 931 times)
the joint
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May 02, 2012, 07:56:23 PM
 #1

This isn't to be taken very seriously.

But, since it seems that all alt. currencies to date (with the exception of namecoin which serves a specialized function) are essentially a gamble anyway, why not just cut to the chase and make a true alt. coin to gamble on.

The basic premise is this:  investing in GambleCoin would be a true and fair gamble.

Here's a very basic, hypothetical model:

1)  All GambleCoins have a probabilistic rate of decay.  For example, if there are 10 million Gamble coins and there is a 5% average rate of decay each month, then 500,000 coins will decay each month.

2)  When a GambleCoin decays, it means that it is removed from the users wallet and included in the next block to be mined.  

3)  The particular coins that decay are determined randomly according to randomly chosen GambleCoin wallets.  In other words, if there is a 5% rate of decay each month, then every month randomly selected wallets will have 100% of all GambleCoins removed from them until an approached average of 5% of the total sum of GambleCoins have been removed from users wallets.

4)  All GambleCoins will be premined and purchased using other currencies.  The incentive to mine would be sustained primarily by the inclusion of decayed coins into blocks and secondarily by transaction fees.  I haven't really thought about how to make this initial buying decentralized.

Thus, the whole premise of GambleCoin is that it is a risky investment.  Should you invest, you run the risk of your wallet being randomly selected for decay upon which you lose everything.  If you get lucky and your wallet is not selected, then you 'win' and continue to reap the rewards of mining.  

A higher rate of decay would correlate to a higher risk/higher reward opportunity as this would mean that more coins would decay and could be remined.  A lower rate of decay would correlate to a lower risk/lower reward opportunity.  The system is fair in that decayed coins are returned to the miners and not to a centralized authority.

Edit:  Think of the advertising possibilities.  "GambleCoin - You always win until you lose"

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RaggedMonk
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May 02, 2012, 09:32:00 PM
 #2

It seems like this would create an incentive to keep your coins in an huge number of wallets, so when you get randomly picked you only lose a small fraction of your value. 

I don't think having users spread coins between hundreds of wallets is your intention.
the joint
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May 02, 2012, 11:35:48 PM
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It seems like this would create an incentive to keep your coins in an huge number of wallets, so when you get randomly picked you only lose a small fraction of your value. 

I don't think having users spread coins between hundreds of wallets is your intention.

You could do that, but in the long run it wouldn't make much difference.  All it would do is decrease the chances that you would lose all of your coins at once.

One downside would be that if this occurred on a mass level, the whole idea might become pointless.  Let's say someone had 100 wallets.  At a 5% decay rate per month, you could expect that, on average, 5 wallets would be selected for decay.  In this case, the "gamble" becomes predictable.

In other words, it would likely turn into a coin where people simply lose 5% of their current holdings every month.

Almost sounds like the Occcu  Cheesy

Occcu = GambleCoin?

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