Altcoins need to meet the needs of three different groups for longterm success:
1. Miners/Traders
2. User community
3. People not experienced with cryptosIn the beginning of a crypto's growth cycle, these needs are very different and make it hard to create real daily users. And I believe this is why the "user" community of 99% of alts consists of only miners/speculators.
The miners/traders need to be able to mine profitably, selling coins at a price that covers mining cost plus a profit when traded for bitcoin
The user community needs a low cost, very easy way of getting coins, and a place to spend them
The people who believe in the cause need a way to get some without mining or trading with BTC, because the don't get cryptos, and have no idea even what bitcoin is all about.
DISCLAIMER - as the founder of AppleByte, I can only speak to how we solved the problems. I welcome the thoughts of other Dev teams.
Miners/Traders - we have been able to keep the difficulty factor of mining lower than normal by keeping the big multi-pools out, by not releasing the linux source
- we have one official pool that limits miners to 25mhs
- we pay a bonus to CPU & GPU miners
All this together allows a person without a big mining rig the chance to profitably mine. Of course you can use windows to solo mine with big ASICS, but very few actually do that.
User Community - for AppleByte this community consists of artists & art lovers, as supporting artists is the purpose of the coin
- Our wallet has a built in CPU pool miner to make it extremely easy for a non-cryptogeek to use.
- The pool bonus pays even the smallest miner 100-150 coins a day
- We have a very engaged community that uses our Twitter tipping bot to support artists with applebytes
- Through the AppleByte Foundation, we give artists a way to spend applebytes on stuff that they want
People who believe in the cause, but just can't get mining - for AppleByte that is a huge group who supports the arts, and just want to buy some coins
- The AppleByte Foundation allows art fans to buy a small amount of coins at a time, with a credit card
- They can buy coins at a low price and when they tip artists, the artist can spend them at a 5x better conversion rate, subsidized by the AppleByte Foundation
Hence the need for three tiers of pricing - rates fluctuate daily of course, but this example is at today's pricing
Miners/Traders - ABY traded today at 50 Sat or about $0.0001
People who want to donate to artists, but not mine - can buy a limited amount for $0.001 per coin
Artists - spend their AppleBytes at a rate of $0.005 per coin
Of course we have sections on our main website and forum teaching anyone how to buy/sell/trade applebytes in any of these ways, so they can chose their method.And of course, over time, all these prices will converge.
But now: - Miners/Traders profit, and even a few artists & art lovers progress to this stage
- Artists can spend their tips or easy mining proceeds at a rate that makes sense compared to how much they have
- People who want to support artists, but not mine can give tips/donations at effectively 5x the value of their costs (because of the AppleByte Foundations "matching" of their donations
If interested in the details, you can find it all at
AppleByte WebsiteIf any other coin Devs are willing, I would welcome hearing how you do it.
AppleByte Details:Announce Thread:
Announce ThreadWebsite:
AppleByte.meFacebook:
AppleByteMe FB PageTwitter:
AppleByteMe TwitterAppleByte (ABY) is traded on Poloniex and
Bittrex
