Then why not help RLC with your ideas since you find similarities.
I have read a lot of your posts and you seem to have a good grasp of economics.
The economic side of things within the RLC is still liquid in terms of a set of rules (which still doesnt not exist) so why not get involved and have your say in what you believe would be best model to follow.
I was trying to come out as friendly (and i really am) but most of the posts are negative. You seem to be calm and logical in your replies so please feel free to post more of the ideas you have and get more involved to help RLC take a rigid shape.
As i have explained, you might not see plenty of differences between the two clients (although there will be a lot in the near future) but still a coin is different from another coin in terms of the economy as well. Doesnt have to be just the tech side of the things to be different..
Anyway thanks for your reply.
Yes, I do see the similarities. But, your project is still missing the key point: The coins do not have guaranteed/backed value. I can't buy 100 RLC from you for $10, then go and sell them back to you for $10 a year from now. Without that guarantee, the value of the coins isn't stable.
Sure, I'm willing to give suggestions.
In my opinion, this is what needs to happen to make your RealCoins viable:
- Register your company as a money service business in the US. This will help build trust with the people who will be exchanging USD for your coins.
- Generate 1 billion coins total. I just picked that number, but whatever is chosen, it needs to be relatively high, at least in the hundreds of millions.
- Generate all coins in the genesis block, and have them sent to an address you control.
- Guarantee to buy back any and all coins at a specific USD value ($1 per coin would be an excellent metric, IMO, as it would make conversions for merchants quite easy/nonexistant). This would stabilize the value of the coins, and would be the main factor of differentiation from Bitcoin. You still have the same decentralized ledger and potentially anonymous platform, but with a stabilized value of the currency as well.
- Set a block reward that you can afford to pay, out of pocket, for at least a year. Bitcoins mined at $2.50/ea bottomed out at about 8 TH/s worth of hashing power. That's $18,000/day worth of coins. IMO, it is necessary to have at least 1 TH/s of power protecting the network. To do this, you need to offer an incentive equal to Bitcoin mining. Assuming a guaranteed value per coin of $1, you'd need to offer 2,250 RLC per day, or 15.5 RLC per block (if you have difficulty set up for a block every 10 min, as Bitcoin does).
- If you don't have close to $1M to pay out to miners over the course of the next year, find an investor who does. Once you show them the potential of the project to be the next PayPal, you'll probably draw their interest, though I imagine it would still be very difficult to get an investor willing to risk on this sort of thing.
- Once at least 17 million of the coins are out in circulation, you'd be making enough interest off the USD deposited to pay for the miners to sustain 1 TH/s of protection. Anything beyond that 17 million is profit to be shared amongst the company's shareholders.
It's an extreme plan, but extreme is needed in order to not be "just another alt-coin". This sort of plan would provide a very useful service, as a stable USD alternative that is both liquid and has the potential to be anonymous/tax-free if a person wants it to be.
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