Ya -- I really cannot stress enough how necessary it is to reduce total supply and PoW phase. Can't sleep because my mind is all worked up about this. I want what is best for the longevity of this coin. Just think about it:
If things remain unchanged -- what group will be holding the majority control on the price once anon features go live? Will it be the miners (selling the price down) or investors (buying the price up)? It will be 100% be the miners holding majority control --> because 75% of all coins will be minted in 2 months (this is way too many coins way too soon) especially considering that XC's biggest selling point was already delivered two months ago (by that point in time).
Again, this would be somewhat of a different story if anon features released near or at the end of PoW phase (because the expectation would help sustain buyer confidence). But it is not. Anon feature is the "hot thing" right now, and the hype around it will only be suppressed as 25 million more XC flood the market in two months. People buy on news and sell on fact. Once anon feature (the news) is released, XC will have an extremely hard time increasing in value in light of 25m (75%) of the supply being minted and thrown into the market. Two months of sell offs is a long time and will assuredly decrease buyer confidence.
Not to mention, 2 months down the road, there will surely be another coin to be 100% PoS with anon features before we reach our 100% PoS stage. It is crucial that XC becomes 100% PoS with anon feature before any other coin.
XC needs to reduce both total supply and PoW phase to help ensure healthy / constant buy pressure. DRK reduced their block reward (and probably would have done more, had they been PoS), because they knew this move was necessary as they drew nearer to implementing darksend. DRK team is really genius when it comes to creating market demand (for this reason and their requiring of 10,000 DRK taken off the market for each masternode).
This is exactly correct as veritasBS said:
Let me walk you through what will happen if the coin specs stay how they are currently:
1) There will be a big run in price when this PoS coin is the first to release the wallet.
2) We will get to a market cap of say 10 million.
3) There will be a fast decline in price but because this IS a coin with a quality dev and features, it will level off to some where around 6 million market cap.
4) Then 25 million more coins will come flooding in to the market over next 100 days. The price per coin will start a slow decline to 1/5 of where it was when it settled after the run.
5)The investors will only take so much loss and jump ship somewhere in the decline.
6) By the time PoW ends, you have many coins on the market with the EXACT same features so you no longer have an advantage.
The opportunity is NOW to make this a lasting coin. Use the advantage the dev has built to make this the premier anon coin...anything else is poor management.
My Proposal:
10m coins (or less) and let PoW continue for another 1-2 weeks (1 is best) max with reduced block rewards.
This will help allow for market cap growth, will help ensure XC is the first 100% PoS coin with anon tech, and will give time for an XC multipool to be set up and launched immediately when PoW ends.
Either this, or extend the PoW mining period years into the future with greatly reduced block rewards. I think this is better than changing nothing (I still think that the first 100% PoS anon featured coin is this coins biggest selling point). But if it remains the same --> yes, this coin will still be successful (if anon releases), but all I see is unnecessary value suppression for the future of this coin.
So true, I am sending this comment to the BTC devs immediately in hopes they cut off PoW supply and shift to PoS immediately.
If a coin has true value, it will rise. End of story. If the entire DRK rise is due to devs "creating market demand" as you put it (others would call it market manipulation, potato, potatoe), then the true value of DRK is not .025 BTC.
If alts need to resort to these types of tactics then maybe ::gasp:: the true value of virtually all alt coins is 0?
Yes, idiots buy the brand new coin to hit the market when the supply is low, and then, surprise surprise, price drops because they do not spend 2 minutes doing the math to figure out this coin is still in a stage of astronomical inflation. That is an example of an unsavvy investor, not a poorly designed coin.
And what would be so wrong with miners controlling 75% of all the XC? They invest money into the mining equipment, electricity, time, and ya know, keep the network of a PoW coin alive.
Miners mine the coins, investors buy them from the miners. That's how it works. If miners see no value in the alts they are mining, well yeah, they are gonna dump for BTC. If there is value in the coin, they will mine and hold. Why is it that miners getting more XC bothers you so much? Could it be because your share of XC will be diluted, and the market won't be able to be controlled by a small group of market manipulators?
Maybe you are right though, it is true that a coin will rise faster and higher with a quick mining period to put the coins in the hands of as few people as possible. It will rise as far as those manipulating the market will allow it to. Until the giant red candle hits. Hold on......lemme check CINNI price really quick. YIKES! Order books looking sickly. Ya must have dumped at 38k satoshis huh? Why didn't you apply your genius to "create market demand" for CINNI? Oh, the market demand will be created with CINNI's innovative encrypted messaging system right? I saw the little pictogram on twitter, it looks like something I would scrawl on a napkin to explain public key encryption to a 5 year old. Innovation!
