So what will happen to Bitstar holders? I have been holding my coins since the early days, is this new coin you talk about a separate coin or related to Bitstar? I dont get it.
Please take the time to read the following and if you are still unsure of what is going on I will be happy to answer your questions.
We will shortly be releasing the details of an experimental project under development by our company.
This new project is the creation of an app which will, in part, utilise a public blockchain for the 'token' element of its functionality.
Some of the Bitstarcoin dev team will be creating this public blockchain by way of a new wallet cloned from another existing coin and rebranded. The purpose of this is to use suitable PoS cryptocurrency tech which is already proven and known to be reliable.
While it will be a public and open-source new blockchain, the dev team have expressed their willingness to support the needs of our app by way of committing whichever mods/dev/forks are required to ensure the functionality needed for the app to operate smoothly and securely.
This beta app may or may not be released as a commercially-launched finished product.
Distribution of the new 'coin' will be done by way of participants receiving a proportional share of those issued from the genesis block as a primer for the public network and its market. To participate you will be required to burn the amount of Bitstarcoins you wish to commit to the project, thereby reducing the issued and max supply of Bitstars.
This app project is an entirely speculative venture. Your choice to participate in the burn/buy for the coin is taken as acknowledgement of the risks associated with an experiment such as this.
Thanks for the update. So this sounds like a separate app completely unrelated to BITS?
Correct, the ATM project for BITS still exists, albeit we have had to pause our development schedule while we wait for iDEX to be completed. So in the meantime we are proceeding with this side-project.
When you say it requires burning the amount of BITS, what does that mean exactly?
There will be a release of a set amount of coins from the genesis block of the new coin. The process of claiming a share will require Bitstarcoins to be sent to a burn address, the new coin's dev team will be providing details on how to go about this closer to the time.
So this will in turn reduce the max supply of BITS? To how much are we expecting?
Yes it will result in a reduced number of Bitstarcoins in circulation and max supply. I have no idea how many this will be.
how about the ATM project?
As mentioned, the ATM project for Bitstar is still scheduled, we just want to use this waiting period to experiment with another project idea.
And why you cant use bits as this technology?
There are a number of reasons why we can't use Bits for this side-project, we may need to ask the coin devs to perform hard-forks, soft-forks or, dare I say it, blockchain-rollbacks, during the beta testing for this app. We may need to abandon the initial coin tech/spec and request an entirely new chain. All at short notice. We also want a fresh chain so it can be handled quicker for such things as resyncing and reindexing during this period.
It feels like you moving value from bits to this new coin.
But this is actually the opposite of that, given the reduction in coin supply for Bits. This isn't moving value to a new coin, far from it, it is an entirely separate project which needs to utilise a new wallet/chain and it may or may not result in a viable business model. We make no promises about this new app becoming a commercial product, nor any about the new coin being created which, don't forget, will be an open-source decentralised coin network, it is not being created or maintained by my company. If this project succeeds and does become a commercial product utilising this new coin, it could end up bringing value to it and thereby reward those who chose to support it. Those are the factors that people will need to consider when deciding how much of their Bits holdings to commit to burning and how much to retain to possibly capitalize on the reduction in coins.
We are wanting to experiment with a number of factors concerning how feasible it is for a commercial project to work with a public decentralised coin network, such as being able to sufficiently influence the devs and its community to accept and work with short-notice forks and/or modifications to support commercial entities which potentially bring value to their coin through utilising it in non-cryptocurrency industries. We also want to see what proportion of the new coin's holders will stake and support the network.
will that coin be POW for some time?
No it will be pure Proof-of-Stake and there are good reasons for it to be distributed this burn/buy way. If the new coin were to be Proof-of-Work there would be both an expectation of return on investment from the miners and they, along with anybody they were selling to from outside of this informed community, would not take kindly to potential short-notice code-changes, forks and possible roll-backs.
As I said, this new coin is an experiment in public/private commercial collaboration, while it is being launched by its own dev team the fact is that my company will be engaging in this arrangement with the understanding that as the app we are developing is progressing, we may state that there is a need for the coin network to be modified in some way to allow for a better fit. It will be up to the dev team to decide whether they wish to respond to commercial requirements in order to cooperate in the hope of a viable long-term use-case being established for their coin.
We will continue to remind people that there are no guarantees or promises being made in regards to this side-project, so their decision to participate in the coin distribution must be taken in the knowledge that there may or may not be a viable product using this new coin at the end of this experiment.
If I participate to the staking process, I need the sources to compile the binary for my linux OS (either Ubuntu/Intel or Debian/arm).
Will the new piece of software be open source?
The new coin is a regular public coin network with the usual open-source code, released by its own dev team, not my company. The sources you need should be available when the new coin's wallet is released.
Is SuperNET involved in the new project?
also, why burn bits, why not just sharedrop a % on all bits hodlers?
No, this is a separate side-project to the work we have been doing with supernet concerning iDEX and our plans to utilise it for the BITS ATM exchange backend.
In the same way that a POW initial distribution model for the new coin would not be suitable, a giveaway presents numerous other problems. To simply gift the initial coin supply to the BITS community would largely result in people dumping their free coin the moment it arrived on an exchange. As we're making no bones about the speculative nature of this experiment, we'd be lucky to see more than a handful of the distributed coins being staked.
Requiring people to burn some Bitstars as part of the buying process for the new coin is an effective way of creating the kind of conditions that will encourage participation by those who are more likely to support the network through running staking wallets. That there is a cost to the BITS holder to choose to burn some coins in order to receive a share of the new coin's initial distribution is balanced by the resultant reduction in the number of Bitstars potentially adding value to their remaining BITS holdings.
By establishing a vested interest in the new coin it will hopefully translate into a supportive community for it.
) and it took about 3 days to update. I've also got a little over 98k coins in the wallet.
