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Author Topic: The truth about Darkcoin's instamine  (Read 995 times)
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winteriscoming5
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March 06, 2015, 11:39:43 PM
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Here is what Evan Duffield doesn't want you to know:



I'm glad you brought up the Darkcoin whitepaper, because it includes this gem: "DarkCoin replaces abrupt reward halving with a reward curve, 2222222/(((Difficulty+2600)/9)^2). The maximum and minimum amounts are set to 25 and five respectively."

This would mean a maximum daily block reward of 576 x 25 = 14 400 DRK. Reality begs to differ:


If implementing such a simple formula can't even be done correctly, then it would seem your trust in your "dev" is deeply misplaced.




Ok so then I went and got the formula from the Darkcoin OP as it was 3 weeks after launch, which was "Block reward is controlled by moore's law: (11111 / (((Difficulty+51)/6) ^ 2))", and I graphed them all:


So reality doesn't match any of the claimed block reward formulae, and this is deeply concerning because changing the social contract destroys the trust (or SHOULD destroy the trust) between the community and the developers of the cryptocurrency.


All of this information and more can be found in greater detail in the following thread:

[DRK] Darkcoin is NOT Anonymous? Possible Proof inside --> https://bitcointalk.org/index.php?topic=978447.0
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March 06, 2015, 11:43:33 PM
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Interesting information. I heard a windows wallet wasn't given for some time as well.
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March 06, 2015, 11:44:44 PM
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cool

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March 06, 2015, 11:52:43 PM
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Was darkcoin instamined?

~2mn coins were issued in the first 48 hours due to problems with the difficulty readjustment. That represents approximately 10-15% of the total money supply that will ever be issued.

The majority of these coins were distributed through the market in the following weeks and months at very low price levels* (0.0000x BTC per DRK to 0.000x BTC per DRK) and a lot of them were also absorbed in the April/May 2014 price increase.

Examples of prices and selling action almost two weeks after launch:
https://bitcointalk.org/index.php?topic=421615.msg4861558#msg4861558
https://bitcointalk.org/index.php?topic=421615.msg4889177#msg4889177

Forum member coins101 did a blockchain analysis of Darkcoins distribution as of September 2014:
https://bitcointalk.org/index.php?topic=778616.0


Will the initial distribution affect Darkcoin in the future?


It can bring criticism but other than that, no, as Darkcoin has solid fundamentals which are the basis for its continuous ascent despite FUD and accusations.

The creator of the coin proposed to fix the initial distribution issue by airdroping new coins in order to address criticism and resolve the issue once and for all. The community disagreed and voted down this proposal with most arguing that the distribution is relatively OK by now (April 2014) and that the airdrop would create more problems than it would solve.

Even if there were doubts for the distribution, the late April-May “pump” solved the distribution problem for good, through massive buys that “chewed” enormous waves of “dumping” from prior holders of cheaply acquired coins.

The quick monetary expansion at the start, and the slower rate of expansion later on, actually had a very positive, yet unintended side-effect: It allowed Darkcoin to achieve a very low inflation rate. If every coin was mined at a consistent rate, the rate of issuing new coins would debase the value of existing coins significantly more. Compared to other PoW coins that started around the same period, Darkcoin has the lowest inflation. This allowed it to maintain and increase value when other coins were crashing under the weight of their insatiable demand for new BTCs (that were needed to buy their daily production).

The problem of high inflation in new coins, which tends to suppress their price as supply rises, has now created a new trend where some of the newer coins which are designed, either use a short mining period and Proof of Stake or continue with PoW but with a diminishing mining reward after a few days/weeks/month to reduce the problem of inflation.

http://wiki.darkcoin.eu/wiki/FAQ#Was_Darkcoin_Instamined.3F
 

 
 
 

Dash : Discussion Thread ->https://bitcointalk.org/index.php?topic=5115659.0
Dash : Price and Trade Discussion -> https://bitcointalk.org/index.php?topic=1233119.0
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