Coming back on LiQio’s questions, which are indeed totally relevant:
- "All foundations are ultimately controlled by NeuCoin holders (1 NeuCoin = 1 vote)" -> Will the foundations not be able to vote with their huge majority of coins?
It is indeed true at the beginning, which will also enable the coin to be developed according to the strategy detailed in our wiki and to be kickstarted. NeuCoin's paradigm is indeed very different from that of Bitcoin's, we have never hidden this fact: a non-premined cryptocurrency (Bitcoin) is indeed totally decentralized from the beginning but also suffers from a free rider problem - as explained in my post above.
The costs of effectively marketing Bitcoin (ideally giving some away for free) and building truly useful applications for it are high. These high costs must be borne by individual companies, while the rewards would be spread across all existing Bitcoin holders. This misalignment of costs and rewards may very well be what is holding back utility development and consumer adoption.
Bitcoin in this sense was well tailored to appeal to early bitcoiners, but not so much to mainstream consumers.
A pre-mined cryptocurrency on the other hand is going to be more centralized than Bitcoin - only at the beginning though in our case. Over time, as our plan is executed in a fully transparent way (figures will be made available before the launch of the cryptocurrency in July) and NeuCoins are distributed in a way that funds mainstream adoption, the outcome is a decentralized and mainstream cryptocurrency. Indeed, pre-mined cryptocurrencies reintroduce a trust factor during a part of the distribution phase - but at the same time, it gives them the advantage to be able to fund mainstream adoption in a must faster and efficient way. Over time, the majority of the coins will be in the hands of the crypto community and of mainstream consumers so that the future of the coin is determined by its holders in a decentralized way.
Now, it is indeed a totally different model: while it is totally fair for you to disagree with it and to not be interested in NeuCoin, calling it a scam is yet another story (answer to RealMelatasta here, definitely our biggest fan so far
).
- How will the foundations influence the market price? What is the hopefully transparent strategy (in-depth) and how is it enforced?
The foundations will manage their holdings in the way described below (
http://www.neucoin.org/en/wiki/#funding). The in-depth (figures) fund management will be made available before the release of the cryptocurrency in July; the principles are the following:
Each year, the foundations’ goal is to sell sufficient NeuCoins through private sales or exchanges to fund the following year’s cash needs. However, when NeuCoin prices rise, the foundations may sell additional coins, with the excess cash obtained kept as a “rainy day” reserve. When prices fall, fewer (or zero) coins will be sold.
Over time, the NeuCoin foundations must continuously determine what the optimal use of their NeuCoin assets are - optimal from the perspective of maximizing the value of NeuCoin. The Growth foundation must always assess whether NeuCoin’s long-term value would be maximized by giving more coins away to consumers, or selling more coins and using the funds for consumer marketing. The Utility foundation must always assess whether NeuCoin’s long-term value would be maximized by awarding more coins (ideally with sales restrictions) to service providers that make NeuCoin more useful, or by selling more coins and using the proceeds to directly fund projects. The prevailing price and demand for NeuCoin will always have a large bearing on this decision calculus.
This will be enforced the following way:
http://www.neucoin.org/en/wiki/#direct-democracyEach foundation will be managed by an Executive Director and overseen by Council Members whose compensation packages are tightly linked to the growth in the market capitalization of NeuCoin. Furthermore, each foundation has an “Enforcer,” whose oversight role is to ensure that the Council Members are following the objectives and rules of the foundation and the results of coin holder votes as discussed below.
The initial Council Members were recruited and appointed by NeuCoin’s founding team and will serve for an initial term of three years. In the first year, the Council Members will be primarily composed of members of the NeuCoin pre-launch founding team. By the end of year one, the foundations will each recruit two independent Council Members and some of the founding team Council Members will resign from the Councils. After the first term, Council Members will stand for re-election for consecutive three year terms.
- Will there be a detailed spending plan for the huge amount of foundation stakes plus the huge amount of coins they will receive from the high reward PoS rewards before the sale of the peanuts starts?
This question revolves around your second question (let me know I’m wrong) "What is the hopefully transparent strategy (in-depth)" to which I gave an answer above. A detailed plan will be made available before the launch of the cryptocurrency in July 2015.
I (and the rest of the team) are available and happy to continue this discussion!
