The argument has been made about the dumping during the first phase that it would create a fair distribution. Those same coins are STILL available on exchanges. Their presence on the exchanges creates a fair distribution as was the developers argument when people were dumping during the first proof of work.
So if there is already a fair distribution system why do the second proof of work. The only argument left would be for better visibility. If you dump another 25 million coins you would have to get much more visibility out of it during the second proof of work to offset. In the end the price will be less. Why would it be more popular than during the first proof of work? It can be argued that a total of 14 days of Proof of Work is an unfair distribution. There will always be that argument.
Another point... Scrypt mining is inherently unfair currently for distribution. You can go to nicehash right now and since Proof of Work will only be for 7 days I can contract hundreds of Giga Hashes of mining for a couple of thousand of dollars. How is this fair to the miner who has a couple of video cards and can muster maybe 2 Mhash? Should they have to buy hash power? The current Proof of Work model favors RICH people not a fair distribution model.
Silk coin CURRENTLY has more coins than Bitcoin or Litecoin, the number 1 and 2 coins on coinmarketcap.
A second proof of work will be UNFAIR. As mentioned earlier short Proof of Work periods allow for people to contract mine for short periods. If you really wanted to be fair the Proof of Work should be for a longer period. Now that I know the second proof of work is a GO I can just go to my Nicehash.com account and point several bitcoins of hash during the second proof of work so I get a large portion of those coins and subsequently raise the difficulty so that regular miners will get a lot less coin. How is that fair? In that case they might as well go and buy them from an exchange, which is what they can do today.
The value of this coin has NOTHING to do with the distribution. No 14 day distribution will be fair. It has to do with wallet innovation and a working PoS. Think about that.
Judge Crypto
www.judgecrypto.com1) Scrypt mining is just as fair for distribution as other algorithms. Anyone can go over to betarigs.com and rent rigs with over 100MHs for X/11, SHA-3 Keccak, Scrypt-Jane and Scrypt-N.
2) The price people are willing to pay to buy SilkCoin is directly proportional to the total supply of SilkCoin. To put this into perspective let's take 2 scenarios and say that SilkCoin has a constant market cap of 3000 BTC in both scenarios. In scenario one we have 30 Million SC, since there are fewer coins people are willing to pay more for them and would pay 10K satoshis for 1 SilkCoin. In scenario two we have 60 Million SC in existence, since there are more coins people are going to pay less for 1 SilkCoin, this time around they pay 5K satoshis for 1 SC.
Now lets say in scenario 1 you invested 5 BTC into SilkCoin at 10K satoshis per/SC that equates to 500 000 SC (out of 30 Million Coins) which is 0.016% of the total supple of SilkCoin
Now lets say in scenario 2 you invested 5 BTC into SilkCoin at 5K satoshis per/SC that equates to 1 000 000 SC (out of 60 Million Coins) which is 0.016% of the total supple of SilkCoin
3) I'm not sure if you mentioned this earlier or if it was someone else, but what was said was a comparison of how once the supply of DarkCoin was cut by 75% the hype around the coin increased and subsequently the price increased. As I mentioned earlier the immediate effect of decreasing the supply will lead to a price increase, but not a direct increase in market cap. The market there was just adjusting to the new supply.
4) People invest money into innovation, people who want to invest in SilkCoin will be investing in our innovation, not because we have a very low supply of coins. If Bitcoin had 1 Billion coins, I guarantee you it would be just as successful as it is now.
5) If we hold a vote for the fate of the 2nd Phase, it will be extremely biased, as naturally all SilkCoin early-adopters, will want their coins to be "rarer".
6) The 2nd PoW phase will be critical to the success of SilkCoin, currently there are many lurkers in our thread waiting for the 2nd PoW to pounce it's glaringly obvious when you look at the thread's view count. The 2nd PoW phase will bring a lot of visibility to SilkCoin and will no doubt push us up higher in the long term, even if the price falls a bit while the market adjusts to the new supply.
To all those who are worried about the 2nd PoW phase, this is a discussion judgecrypto and myself had earlier in this thread. As for the price, I predict that once the 2nd PoW launches there will be an immediate spike in price (due to new people entering the market), followed by drop to pre-spike price levels as some miners dump their coins for a quick buck.
