have you thought of doing it over Peercoin blockchain as BTC is so precious that it would be much sad to see it burnt ? Ppc inflates 1% on POS minting (although it also destroys 0.01 transaction fee), so the burnt coins will hopefully be regenerated and we can keep our XCP.
We have been exploring taking the concept of Counterparty out to additional blockchains. From a technical standpoint, Counterparty uses the OP_RETURN feature of Bitcoin to store its data (full support for which will be included in Bitcoin v0.9, which will most likely be out and deployed across the major mining pools in about a month to two based on Gavin's estimates).
The advantage of this is that it's a very clean way of encoding the data: Counterparty transactions can be easily pruned from the blockchain. The disadvantage is that any altcoin looking to implement Counterparty support would need to have this feature (or, fork and extend the Counterparty protocol to use a slightly different encoding method, such as multisig or something similar to Mastercoin's Class A transactions).
Currently, Peercoin is moving to 0.8.4 code I believe. Once SunnyKing syncs up to 0.9, this may be possible (however, there may still need to be some adjustment made to deal with the stake blocks that Peercoin has).
This all being said, we are interested in speaking to altcoin developers (and especially ones that can work with the OP_RETURN featureset) as this develops. Counterparty becomes stronger as its standards are deployed across multiple blockchains.
