I just wonder why the distribution has to be so over-proportional in the beginning, well its done now but we could argue about this very much.
The algorithm was set to decrease block reward with increased difficulty, so less difficulty = more coins.
The financial aspect of the coin, ie the way the monetary base is distributed to the miners, is quite good right now to be honest and it is the prime reason why other altcoins have a diminishing market cap while DRK maintains its price and position.
If the inflation rate right now was high then DRK would not be able to maintain price and would suffer the consequences of requiring multiple times the BTCs that other coins like Vert require in order to absorb the new coins generated each day.
You can either have a constant high inflation, a diminishing curve that is still very inflationary or an accelerated diminishing curve that curbs the inflationary effect relatively early.
Bitcoin has been distributing coins for like 5 years and is still quite inflationary for its current price (3600 BTCs x 620$ = 2.23 mn USD are required each day to keep the price steady versus fiat, or half the miners have to hold their coins and just 1.1mn USD have to be invested each day to keep the price steady from half the coins dumped). That's ~400-800mn USD per year requirement, just to keep the price steady. Litecoin is like three years old and is more inflationary as it hasn't halved its reward yet.
And then you have coins that are like a few months old and have the need to distribute the monetary base but also not do so at a rate which is killing the price. Most altcoins fail in this regard due to the relatively fast issuing curve. Coin "designers" and copy/pasters that simply tweek a few parameters do not necessarily understand economics.
It's extremely difficult to emulate bitcoin's success, distribute a large number of coins, do it so that you can avoid any criticism whatsoever, avoid IPO and pre-distributed premines, keep the price at a good level etc etc. These are all conflicting with each other.
The ONLY thing about DRK that prevents much higher prices is due to what you just said.
Current coin supply is less than 4 million DRK. 2% of 84 million is...
1.6 million, so in the first week probably 80% of the DRK was mined
No premine, but certainly a small number of people have this 80%
I have no problems with people that were smart enough and lucky enough to have mined the first 80%. Just dont keep promoting it as no-premine. It is technically true, but from a practical standpoint misleading and is an attack vector for credible complaints.
So a small number of people now have $2 million USD worth of DRK and they continue to cash out. Based on total volumes traded, there is still a long ways to go before even $1 million of that is sold.
James
If DRK used a standard issuing algorithm it would be like Max and Vert (a constant dipping curve) - because it'd require tonz of BTC every day to maintain price. The fast initial curve and slower rate of production right now has solved the price-killing issue of most altcoins (proof of stake = junk solution IMO).
Regarding those who cash out etc, there were a lot of coins (hundreds of thousands) that changed hands when the price was between 0.000x and 0.0000x. So early miners did sell hundreds of thousands back then and the problem was then altered to "the investors who bought so cheap could dump later". We are talking about 50.000 coins orders or 100.000 coins sweeps on ccex, aside from "WTB XX.XXX DRK" people on the thread.
I remember the price between 0.000020 (buy side) and 0.000070 sell side (thousands of coins) and I was like "wtf, 0.000070?" - and I didn't buy because I thought the margin in favor of the sell side was enormous... If I bought back then I'd be like 20x on my investment. The opportunity was there, I can't say I didn't have it. The same is true for everyone that complains. And that's almost two weeks after launch. Then everything was sweeped up to 0.000180, and they were sweeped again up to 0.000500. So, again, who is to blame except those who didn't buy cheap (compared to current prices - which may be very cheap compared to a few years from now)?
Criticism of early-adopter advantage is a sign that a coin is doing good because everyone wanted in earlier and hitting their head on the wall. And, especially in the case of DRK, it's unfounded, because the price was very low for quite a while - and one could buy like 14k DRK for a single BTC. It's not like the early miners were asking 0.002 per coin.
