Ok, I understand it better now. But I would imagins that high difficulty and low block counts will also affect adoption rate of the coins, so I guess you have to find a balance.
Topic: ALT Coins make developers a lot of money? (Read 833 times)
I keep reading that launching an ALT coin makes the developer a lot of money. If everyone wants new coins not be pre-mined, how does the developer make money?
I believe premining .01% to .90% is ok in order for the devs to be compensated for their efforts. Even if it's just a novelty coin with not much new to offer.
I would like to hear your opinion.
it depends on the coin parameters aswell. ie how long will all coins be generated, when rewards halve.
1% premine is a lot different if only 5% of total coins will be produce in the first year, vs 90% for example.
further the devs can make money by paying for or otherwise getting hashpower to mine early like everyone else can.
and they can also employ some tricks to increase the probability of getting a big instamine going on.
usually though its pretty obvious when this happens and everyone knows what is up.
instamine also depend on coin settings, coin can be set up to allow a period of very fast mining,
so that is how they can also make money, even without premine
Technically, isn't every coin released instamined? Thousands of Mhash of mining instantly after the coin is released.
No, if the difficulty is high enough and the reward block is very long during the first hours.
The problem is that the genesis has to be mined and nobody is willing to do that (perhaps on purpose?)
I keep reading that launching an ALT coin makes the developer a lot of money. If everyone wants new coins not be pre-mined, how does the developer make money?
I believe premining .01% to .90% is ok in order for the devs to be compensated for their efforts. Even if it's just a novelty coin with not much new to offer.
I would like to hear your opinion.
it depends on the coin parameters aswell. ie how long will all coins be generated, when rewards halve.
1% premine is a lot different if only 5% of total coins will be produce in the first year, vs 90% for example.
further the devs can make money by paying for or otherwise getting hashpower to mine early like everyone else can.
and they can also employ some tricks to increase the probability of getting a big instamine going on.
usually though its pretty obvious when this happens and everyone knows what is up.
instamine also depend on coin settings, coin can be set up to allow a period of very fast mining,
so that is how they can also make money, even without premine
Technically, isn't every coin released instamined? Thousands of Mhash of mining instantly after the coin is released.
This is proportional to the coin's starting difficulty and difficulty increases. There's absolutely no reason why the difficulty couldn't be adjusted so adoption is more gradual and the coin isn't insta-minded to death at launch.
I keep reading that launching an ALT coin makes the developer a lot of money. If everyone wants new coins not be pre-mined, how does the developer make money?
I believe premining .01% to .90% is ok in order for the devs to be compensated for their efforts. Even if it's just a novelty coin with not much new to offer.
I would like to hear your opinion.
it depends on the coin parameters aswell. ie how long will all coins be generated, when rewards halve.
1% premine is a lot different if only 5% of total coins will be produce in the first year, vs 90% for example.
further the devs can make money by paying for or otherwise getting hashpower to mine early like everyone else can.
and they can also employ some tricks to increase the probability of getting a big instamine going on.
usually though its pretty obvious when this happens and everyone knows what is up.
instamine also depend on coin settings, coin can be set up to allow a period of very fast mining,
so that is how they can also make money, even without premine
Technically, isn't every coin released instamined? Thousands of Mhash of mining instantly after the coin is released.
You end up making a heck of a lot more money if you premine your coin extensively and still manage to get widespread adoption. These two things often don't go together however and the cryptocurrency community doesn't generally support coins with large premines, so even though it is quite possible to make a lot of money developing a coin and awarding a large percentage of it to yourself, you have a much better chance of making a few thousand dollars if you just release your coin honestly and work hard to develop it. You probably won't see the million dollar paydays you could see with an extensively premined coin but your average developer doesn't have the skills to make a premined coin successful anyway so the end result is a bunch of premined coins that nobody wants because everyone is chasing after the big payday they could get if they became one of the big successful premined coins. Unfortunately for developers, it is easier to imagine than to realize. A few honest coins have come out recently, that is a welcomed change from what I remember mostly seeing a month ago.
That doesn't have to be the only way the developer makes money, and it shouldn't be. Large premines devalue the currency considerably.
They could mine the coin themselves along with everyone else, or accept donations instead.
They could mine the coin themselves along with everyone else, or accept donations instead.
I keep reading that launching an ALT coin makes the developer a lot of money. If everyone wants new coins not be pre-mined, how does the developer make money?
I believe premining .01% to .90% is ok in order for the devs to be compensated for their efforts. Even if it's just a novelty coin with not much new to offer.
I would like to hear your opinion.
it depends on the coin parameters aswell. ie how long will all coins be generated, when rewards halve.
1% premine is a lot different if only 5% of total coins will be produce in the first year, vs 90% for example.
further the devs can make money by paying for or otherwise getting hashpower to mine early like everyone else can.
and they can also employ some tricks to increase the probability of getting a big instamine going on.
usually though its pretty obvious when this happens and everyone knows what is up.
instamine also depend on coin settings, coin can be set up to allow a period of very fast mining,
so that is how they can also make money, even without premine
I keep reading that launching an ALT coin makes the developer a lot of money. If everyone wants new coins not be pre-mined, how does the developer make money?
I believe premining .01% to .90% is ok in order for the devs to be compensated for their efforts. Even if it's just a novelty coin with not much new to offer.
I would like to hear your opinion.
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