If this coin is basically acting like a group/decentralized investment fund, I would think that proof of stake is a better fit. If you plan to do something like buy a few asics and pay out dividends or reinvest mining returns, there's no gain from the proof of work model since there's no need for a wide distribution after the initial launch.
Proof of work only really seems to make sense if you want to use the initial funds to reinvest and grow the coin as a more widely used currency (building infrastructure and advertising), rather than just as an investment fund/store of value. Otherwise you're diluting the coin's value over time with no real gain for doing so.
Seems like an interesting idea, have my doubts it'll take off without a clear direction though. Also seems like it needs a permanent escrow to handle the funds, which might be hard to find.
That's exactly right. The (proof of stake) is something that I don't know so well and that is why I'm doing what I know (Proof Of Work). Right now POW is 'tried and true for me' and as a GPU miner it's what I familiar with. I'm going to look more into that now that you mention it, you are probably right, it may be a better fit. This coin only needs a small amount of miners to keep the business side up and running, but I want to see how it does with the added innovation of mining share incentivization. What I don't want to do is create another coin that just gets pumped and dumped like normal. It's just not interesting anymore, time for the next level.
Figuring out how to create a "Permanent escrow" would be an incredible accomplishment. I have thought about giving the keys to multiple benefactors, but if one of the chain links break the entire piano falls two stories high. It has to be a simple solution. Someone who is trust worthy and has a reputation to lose if the contract is broken. I have to believe that there is something that hasn't been invented yet that will do escrow in this way without added counter parties.
If I was to buy 5 "Asic Knc Titans" and something goes wrong(Knc never delivers or does a BFL) I lose or tie up $50,000. If we all put in what we can afford to lose, we wont take as big of a hit if something goes wrong. Basic risk assessment methodology. Investing in Asics has it's risks and anything we can do to off-set them should be applied strategically. There is no guarantee that Asics will have a decent "ROI"(return on investment) and I wouldn't want to put all my eggs in that basket. As an investor, I think the risk reward is good(70-90%) and worth putting 10-20% down on Asic Investments. Also having the Asics ran by the right people is also a factor. The difference between 100-200% gains over strait (LTC) mining.
