Best way of initial coin distribution

[Come-from-Beyond]

I'd like to get your suggestions about the best way of initial coin distribution of a 100% Proof-of-Stake coin.

NB: Actually it's for a network-bound proof-of-work coin but from formal point of view it's the same problem. Network-bound PoW system requires a lot of explanations, let's make appearance that we are talking about PoS now, the majority is more familiar with PoS than with network-bound PoW.

[cakir]

Well, Let's say you've %100 premined 1 mil coin. I would distribute this coin like that;

10% of this coin: IPO
10% of this coin: ICO (x2 price of ip price)
10% of this coin: signature campaign
10% of this coin: twitter/fb shares, followers etc.
10% of this coin: 7 day mining
...

Something like that: which covers all of the methods to distribute coins. For instance: I want to mine then I'll mine it pow mining. I don't power to mine so I'll join sig campaign. I don't want to do anything bu want coins then I'll buy with ipo/ico etc.

Everyone can collect coins how they like.

[Crestington]

I'd like to get your suggestions about the best way of initial coin distribution of a 100% Proof-of-Stake coin.

NB: Actually it's for a network-bound proof-of-work coin but from formal point of view it's the same problem. Network-bound PoW system requires a lot of explanations, let's make appearance that we are talking about PoS now, the majority is more familiar with PoS than with network-bound PoW.

Just premine the whole thing except a small portion for mining and sell/give-away at good prices for what you need for expenses.

or

You could have no premine but a longer POW period (1-3 months)

Would all depend on execution though because you want investors to make profits.

[pozmu]

I have an idea, start a free casino!
Make it hard enough so having multiple accounts won't really help.

[Come-from-Beyond]

Well, Let's say you've %100 premined 1 mil coin. I would distribute this coin like that;

10% of this coin: IPO
10% of this coin: ICO (x2 price of ip price)
10% of this coin: signature campaign
10% of this coin: twitter/fb shares, followers etc.
10% of this coin: 7 day mining
...

Something like that: which covers all of the methods to distribute coins. For instance: I want to mine then I'll mine it pow mining. I don't power to mine so I'll join sig campaign. I don't want to do anything bu want coins then I'll buy with ipo/ico etc.

Everyone can collect coins how they like.

What are differences between IPO and ICO?

PS: We can't use mining, there is no infrastructure for that, all the coins must be distributed before the genesis block.

[Come-from-Beyond]

Would all depend on execution though because you want investors to make profits.

Profit is not required, we can do it a-la Nxt (collect very little amount just to know how to distribute the coins).

[jones_]

I'd like to get your suggestions about the best way of initial coin distribution of a 100% Proof-of-Stake coin.

NB: Actually it's for a network-bound proof-of-work coin but from formal point of view it's the same problem. Network-bound PoW system requires a lot of explanations, let's make appearance that we are talking about PoS now, the majority is more familiar with PoS than with network-bound PoW.

So the is work prolonged by network latency? Like having to communicate with a bunch of computers all over the place to get enough data to solve the puzzle where the difficulty is how long the connections take to complete? interesting..

It seems that the BCNext way will give you lots of strife from the current bitcoin community (as we've seen) So I suggest either a BCNext style one with a wider reach, or 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.

[cakir]

Well, Let's say you've %100 premined 1 mil coin. I would distribute this coin like that;

10% of this coin: IPO
10% of this coin: ICO (x2 price of ip price)
10% of this coin: signature campaign
10% of this coin: twitter/fb shares, followers etc.
10% of this coin: 7 day mining
...

Something like that: which covers all of the methods to distribute coins. For instance: I want to mine then I'll mine it pow mining. I don't power to mine so I'll join sig campaign. I don't want to do anything bu want coins then I'll buy with ipo/ico etc.

Everyone can collect coins how they like.

What are differences between IPO and ICO?

PS: We can't use mining, there is no infrastructure for that, all the coins must be distributed before the genesis block.

Well, basic difference is price.
On ipo: you designate a time let's say it's a week.
You collect funds for a week, let's say it's around 12 BTC for 100k coins.
What's ipo price? 0.00012 btc for each coin.

On ico; you designate the price of the coin. You can say ICO price is 0.00024 btc for 100k coins. Then you can collect 24 BTC for it.


Basically prices are different.

[URSAY]

I'd like to get your suggestions about the best way of initial coin distribution of a 100% Proof-of-Stake coin.

NB: Actually it's for a network-bound proof-of-work coin but from formal point of view it's the same problem. Network-bound PoW system requires a lot of explanations, let's make appearance that we are talking about PoS now, the majority is more familiar with PoS than with network-bound PoW.

So the is work prolonged by network latency? Like having to communicate with a bunch of computers all over the place to get enough data to solve the puzzle where the difficulty is how long the connections take to complete? interesting..

It seems that the BCNext way will give you lots of strife from the current bitcoin community (as we've seen) So I suggest either a BCNext style one with a wider reach, or 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.

CLAM distro is worth looking at.

[Come-from-Beyond]

CLAM distro is worth looking at.

Then exchanges will get big share for free while the original owners will get nothing.

[El Emperador]

I'd distribute them mainly to promote the coin itself: twitter/facebook giveaways, bounties, faucets, sig campaigns...

[MadAlpha]

50% in IPO/ICO (whatever the difference is), after you have promoted it enough to get as much investors as Ethereum did. Then the other 50% as forging rewards released over the next 10 years.

[Crestington]

CLAM distro is worth looking at.

Then exchanges will get big share for free while the original owners will get nothing.

Wouldn't have to do all of it with exchanges first, you could use timelocks even. If you know what the exchange addresses are, you could even exclude them in the first round and make sure all the holders get their Coins first.

The Clams effect also means that the holders of the original Coin also keep their original keys so they aren't losing anything by participating.

[Sebastien256]

What about burn coin of an ipo/ico? You are then sure issuer do not self invest. In Nxt, that would mean send coin to genesis.

[Crestington]

What about burn coin of an ipo/ico? You are then sure issuer do not self invest. In Nxt, that would mean send coin to genesis.

The burn only really works if you could do it where it actually reduces the float rather than sending it to an unspendable address.

[Sebastien256]

What about burn coin of an ipo/ico? You are then sure issuer do not self invest. In Nxt, that would mean send coin to genesis.

The burn only really works if you could do it where it actually reduces the float rather than sending it to an unspendable address.

Why? i do not understand. thank for more explanation.

edit, genesis in nxt destroy the nxt coin, if it is that that you mean to reduce float.

[readysalted89]

CLAM distro is worth looking at.

Then exchanges will get big share for free while the original owners will get nothing.

Wouldn't have to do all of it with exchanges first, you could use timelocks even. If you know what the exchange addresses are, you could even exclude them in the first round and make sure all the holders get their Coins first.

The Clams effect also means that the holders of the original Coin also keep their original keys so they aren't losing anything by participating.

Lottoshares coin used the same type of distribution as Clams, but attempted to compensate sharecoin holders who lost out when the sharexcoin exchange was hacked.

The quote gives the exact distribution model, but the difference to the Clams model was most of the coins randomly became spendable over a period starting 2 months from launch, finishing 14 months after launch. After importing a key your wallet would show you had coins that needed tens of thousands of confirmations before they could be spent.

...

Distribution

(These coins are available to be played immediately)
20% Bitcoin - Each of the top 1,000,000 Bitcoin addresses received 20 LTS in the genesis block. (Block 302,000)
20% Dogecoin - Each of the top 250,000 Dogecoin addresses received 80 LTS in the genesis block. (Block 232,000)

(These coins are vested, and mature over a period starting 2 months from launch, finishing 14months after launch)
10% distributed to MemoryCoin (MMC) holders (Block #39,983)
10% distributed to ProtoShares (PTS) holders (Block #65,959)
10% distributed to AngelShares (AGS) holders (End of May 2014)
8.0% Devs for ongoing development and maintenance
6.6% FootballCoin - 7080 coins to each of the users on the distribution list (80 coins available for use immediately)
10.9% ShareCoin - 7080 coins to each of the users in the inital distribution (80 coins available for use immediately)
4.5% gifted to btctalk users, exchanges, crypto projects, bloggers (80 coins available for use immediately)

Any coin not moved from the genesis block become invalid after 2 years

...

[Come-from-Beyond]

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.

[TaunSew]

Proof of Beluga Caviar.  

[lucky88888]

The best way is IPO with full fund buy back @ ipo prices! This way the price can only go up and can not go down as long as you don't end up running away.

That's the way it worked best so far, except they all end up being scams so far.