Best way of initial coin distribution

[Anotheranonlol]

I would say a premine of less than 0.5% is a decent way. This way, the value depends on what you make of the coin, and doesn't have to be a pump and dump

We have to distribute 100% of the coins in the beginning.

just a few ideas

1)
https://drive.google.com/file/d/0BxZjpOK0pR0wMEZ2cVo0XzM0T3c/view?pli=1
https://github.com/Buskcoin/The-Chain-Gang

2) https://bitcointalk.org/index.php?topic=140711.0

3) https://en.bitcoin.it/wiki/Zero_Knowledge_Contingent_Payment

H() could be a program that verifies possession of a valid machine readable travel document issued to a particular person. In this case, you would be able to define a payment to someone based on some arbitrary attributes about them, such as their name + date of birth, or perhaps by providing a photo of their face that's then matched against the travel document using the Eigenfaces algorithm. There would be no need to obtain a public key from them ahead of time meaning that, for example, you could send money to someone who was only just born and doesn't yet have a wallet.

(or a simplified version where user data is verified via a centralised db like https://www.trulioo.com/ or http://www.lexisnexis.com/risk/intl/en/instant-id-international.aspx)

the last 2 examples focus more on establishing some sort of ID to limit distribution of coins to real entities

I can't really think of any ideal method to widely distribute a coin fairly amongst a group without sacrificing user-privacy.  Ripple, Stellar and NEM were ok to get coins in the hands of those that hadn't already acquired hashing farms - they required very light verification at most but all of them were gamed. Whether it's twitter, facebook, or bitcointalk accounts they'd be brought in bulk as theres people with tons of socks .Even if it was something harder to obtain like passports or whatever being checked on a third party api (via a provable smart contract) identities would still be purchased off dark markets

I think perhaps the simplest method is a straight proof-of-burn. The more money any entity pours into the initial proof-of-burn (including the developers themselves) the more you might expect them to work for their investment- cause nobody is getting those funds back otherwise. (granted the biggest contributors might carry some passive whales on their shoulders without financial support afforded by an ICO) However at least It eliminates concerns of developers buying their own supply & massively dumping on market and theres no fixed IPO cap

[1715155573]

1715155573

[1715155573]

1715155573

[1715155573]

1715155573

[1715155573]

1715155573

[MadCow]

100% IPO, all funds raised go to charities. IPO method is fair, no sockpuppets, and does something good. Could even be an educational non-profit that focused on crypto currencies.

edit: my preference for charity would be ones focused on alleviating extreme hunger

[DecentralizeEconomics]

allowing people to redeem packs of coins on the new system by posting a token of an nxt account with a balance higher than X at a certain point.

Imo, this is the best way.  You could even spread out the distribution over several months before you launched the genesis block.  For instance, the percentage of NXT you own on April 1st, May 1st and June 1st determines your allotment in the genesis block and each month would distribute 33% of the currency.

[patmast3r]

That depends on what you want to achieve with your distribution.

Is it supposed to be as easy as possible i.e. not much administration ?
Do you want to reach as many people as possible or is the generated funding more important ?
Would socks be a problem ?

What is the best always depends on the desired outcome.

[Come-from-Beyond]

That depends on what you want to achieve with your distribution.

Is it supposed to be as easy as possible i.e. not much administration ?
Do you want to reach as many people as possible or is the generated funding more important ?
Would socks be a problem ?

What is the best always depends on the desired outcome.

Much administration is not that bad. As many people as possible without socks because there is no need to promote the coin.

[Come-from-Beyond]

After reading the suggestions I came to such a method:

1. Create a mintable Nxt subcurrency and let people mint as many coins as they can within 24 hours.
2. Create a special Bitcoin address and let those who took part in the previous step send several satoshis to back every minted coin.

These two simple steps solve sockpuppet issue (because resource testing is used), greatly reduce number of script kiddies (or school network admins) with botnets (because minted coins must be backed by bitcoins) and reduce advantage of being a Bitcoin early adopter (because minting requires a lot of GPUs and ASICs can't be used for that).

[JohnnyBTCSeed]

After reading the suggestions I came to such a method:

1. Create a mintable Nxt subcurrency and let people mint as many coins as they can within 24 hours.
2. Create a special Bitcoin address and let those who took part in the previous step send several satoshis to back every minted coin.

These two simple steps solve sockpuppet issue (because resource testing is used), greatly reduce number of script kiddies (or school network admins) with botnets (because minted coins must be backed by bitcoins) and reduce advantage of being a Bitcoin early adopter (because minting requires a lot of GPUs and ASICs can't be used for that).

Does this mean that if you dont have a gpu miner for step 1 you are SOL?

[Come-from-Beyond]

Does this mean that if you dont have a gpu or asic miner for step 1 you are SOL?

With CPU you'll mint much slower.

[JohnnyBTCSeed]

So how can i game the system then? Lol

[JohnnyBTCSeed]

Maybe , as an earlier poster mentioned, do it over the course of a few months. Ie minting period 1 in march, period 2 in april, period three in may, etc.

That way more people have time to participate.

[Come-from-Beyond]

...as you would have had to been a modern day Nostradamus...

...or UtopianFuture.

[pizza77]

Giving a stake to each bitcointalk member who applies is a possibility. Its been done before. Some devs gave everyone who applied the same amount, some based the amount on bitcointalk activity rating, and some restricted the giveaway to members above a certain rank.

[dsly]

Whats the problem of taking the addresses and directly distributing it after the genesis block ?

[Come-from-Beyond]

Whats the problem of taking the addresses and directly distributing it after the genesis block ?

What addresses?

[doc12]

I think its not so important how you distriubute the coins , but to have a very long distribution time, lets say a year or somthing like that. 

[DecentralizeEconomics]

...as you would have had to been a modern day Nostradamus...

...or UtopianFuture.

Hahaha  Good one.

theres no way he could have known about the second, far more throughout and technical round of sock removal. so even if he knew how to get through the first round, the second would have caught him.

Go tell that to some sucker who will believe it.

[spartacusrex]

I was thinking that what you really want is as LARGE an initial user base as possible. You need some way of reaching AS MANY users as possible.

You can't give them away for free as that is too easy to game.

Mining / NXT asset / BitcoinTalk IPO etc etc seem too limited to 'Crypto Scene'

How do you get ordinary 'Joe Blogs' involved..

Sooo..

I would do an android/iOS app.

Sell them in the app, with in-app purchase. Say $0.69 a coin (The minimum in-app amount - it doesn't matter how many coins you get). YES - you would make some money, but there is no way round that. So would Apple and Google by the way.

Then at the end of a specified period of time(a Month ?), allocate based on how many coins sold in total. (That's why it doesn't matter how many actual coins you get, you get a percent of the total. As you did in that now infamous original NXT thread with BCNext.. I was there.. ;-)

This way, hopefully, many 10's of thousands of users can buy some of this initial stock.

[Come-from-Beyond]

I was thinking that what you really want is as LARGE an initial user base as possible.

I don't need too many users. 1000 is max.

[mthcl]

You can also distribute among facebook accounts (of those who apply) created before certain date. And also among bitcointalk/nxtforum users: e.g., senior and hero members get a stake for free, full members pay smth, junior members pay more.

[d5000]

I like the "proof-of-location" method a lot. You would have to prove that you were at a specific location via GPS and other methods (IP ping latency?), like in an augmented reality game. So the community all around the world has the approximately the same chance.

The problem is that I don't know if it is possible to avoid cheating. So for now, I would only distribute very few coins per address and only during a limited amount of time (< few days, so cheaters first must find out how to cheat), but that would enable it to be an alternative to an IPO