Topic: Definitive Distribution Definitions (Read 305 times)
This is just my opinion, but having A snapshot seems like the best way to go. Meaning it keep the (holding) incentive High people will not want to dump the coins because at any time there can be a snapshot and they may lose the opportunity to increase their earnings. The more people holding the price will increase thus attracting new people. But the snapshot should not be based on how much bitcoin someone holds but how much bitcore they hold. (7)
In an attempt to seek, develop and foster a uniform terminology, I thought I'd start a list of common distribution types and their definitions. I'm starting it based on my common understanding, but obviously welcome feedback/suggestions and will revise and add to it as time passes, as needed.
1) Mined - coin is distributed via proof of work by hashing, typically using a CPU, GPU or ASIC see bitcoin
2) Proof of Stake - coins are generated by a hash function, but is based on holding coins on an active and online wallet/service that maintains a complete and valid blockchain for that coin see Condensate
2a) Delegated Proof of Stake - PoS done via proxy, coin holders can typically vote their smaller holdings to a large stake pool and earn shares see ARK
2b) Hybrid PoS/PoW - A chain may be secured by both cryptographic hashing work and staking in various combinations see Decred
3) Masternode/Secure Node/Static Node/etc... very similar in function to proof of stake but requires a pre-determined amount of coins to operate a "node" and generally provides higher staking rewards and some level of share in network transaction fees see PIVX
4) Airdrop - (read: GIVEAWAY, but those aren't allowed on BTCT) this is an early distribution of a coin or token, for free or near free (i.e. completing a registration form). many coins purporting to be airdropped are not true airdrops but one of the following
4a) Airdrops can occur in various fashions and may have some pre-requisite, such as holding a different coin that is linked to the new coin (see: stellar), receiving coins for holding the same coin (see byteball), holding a token that is used for linked distribution (see WAVES), completing a registration form and providing a delivery address (see NEM) and various other simplistic methods, usually aimed at getting the coin into as many peoples hands as quickly as possible.
5) Bounty - Coins paid for some service provided to a given coin/token campaign, usually in the early stages of development (see Deep Onion)
Bounties can take many forms but common examples include: signature/avatar wearing in promotion of the coin, translating announcement threads into non-English languages, promoting the coin/token on social media, recruiting additional participants in these functions, etc...
generally speaking bounties ARE NOT airdrops, as they require work on the person's part to receive their rewards
6) Swap - a coin swap is a not uncommon ocurrence, in which a developer decides that an existing coins blockchain and codebase lacks the ability to be easily developed in a way they desire. In a swap existing coins are exchanged (usually 1:1) with a new coin, the old coins are burned (lost) and the new coin is given to the person making the swap. (see BlockNET)
from a technical perspective there are not always clear reasons a swap is truly necessary, a soft or hard fork may be easier or equally functional, but this is a use case made by developers based on their plans and technical expertise
7) Snapshot - An image taken of a blockchain at a specific moment in time, this is then used to create and credit those same private keys with matching coins on a new blockchain that may or may not be related to the original. (see BTX (bitcore))
Fork(hard) - An existing coin and blockchain has code changes that make future block propagation to the chain incompatible, in the event enough people maintain hashing the OLD chain, a hard fork will occur effectively generating 2 tokens/coins from 1 original. In effect it's the same as a snapshot, but the snapshot moment is carried on in perpetuity in both directions. (see Bitcoin Cash)
Related terms:
Fork (soft) - A code update to a blockchain that while necessary to utilize new functionality, is not inherently incompatible with the way blocks are found or propagated, in a soft fork both old and new clients can continue using and sharing coins on the chain without a need to divide those pools into different coins.
Burned - when coins are "destroyed" typically by being sent to an address that has no private keys known or held by anyone or anything and thus can never be retrieved
Hashing - the process of searching for a cryptographically significant number that follows the coins formula of block generation (complicated crypto math)
Pre-mine - amount of coin that is created via PoW prior to releasing the ANN and codebase that is typically held by the developer see DASH
Fair distribution - typically a PoW coin is termed to have a fair initial distribution if there's NO or VERY SMALL pre-mine and PoW is released for public mining at the same time the developers initiate the chain allowing anyone paying attention to hash the coin from the start see SIGT
and many more I'm sure I'm not thinking of that will hopefully be contributed by YOU!
ICO - Initial Coin Offering, similar in nature to an IPO in the stock trading world. ICOs are usually offered at a % premium in some model that rewards early investors more than those that contribute later.
Pre-ICO - A new-ish term that is basically just an ICO before the ICO. Although these may appear redundant they are often done to develop funding for bootstrapping initial development/team creation in anticipation of the full ICO which is intended to provide operating capital and/or funds for the service offering of the coin.
Coin - a digital representation of a single unit of a cryptographic asset held on a blockchain typically this will be a unique chain for that coin asset
Token - frequently used interchangeably with "coin" but has a common difference in usage. Tokens generally represent an on-chain asset that is managed using a secondary coin/token's chain (see ERC20)
and many more I'm sure I'm not thinking of that will hopefully be contributed by YOU!
1) Mined - coin is distributed via proof of work by hashing, typically using a CPU, GPU or ASIC see bitcoin
2) Proof of Stake - coins are generated by a hash function, but is based on holding coins on an active and online wallet/service that maintains a complete and valid blockchain for that coin see Condensate
2a) Delegated Proof of Stake - PoS done via proxy, coin holders can typically vote their smaller holdings to a large stake pool and earn shares see ARK
2b) Hybrid PoS/PoW - A chain may be secured by both cryptographic hashing work and staking in various combinations see Decred
3) Masternode/Secure Node/Static Node/etc... very similar in function to proof of stake but requires a pre-determined amount of coins to operate a "node" and generally provides higher staking rewards and some level of share in network transaction fees see PIVX
4) Airdrop - (read: GIVEAWAY, but those aren't allowed on BTCT) this is an early distribution of a coin or token, for free or near free (i.e. completing a registration form). many coins purporting to be airdropped are not true airdrops but one of the following
4a) Airdrops can occur in various fashions and may have some pre-requisite, such as holding a different coin that is linked to the new coin (see: stellar), receiving coins for holding the same coin (see byteball), holding a token that is used for linked distribution (see WAVES), completing a registration form and providing a delivery address (see NEM) and various other simplistic methods, usually aimed at getting the coin into as many peoples hands as quickly as possible.
5) Bounty - Coins paid for some service provided to a given coin/token campaign, usually in the early stages of development (see Deep Onion)
Bounties can take many forms but common examples include: signature/avatar wearing in promotion of the coin, translating announcement threads into non-English languages, promoting the coin/token on social media, recruiting additional participants in these functions, etc...
generally speaking bounties ARE NOT airdrops, as they require work on the person's part to receive their rewards
6) Swap - a coin swap is a not uncommon ocurrence, in which a developer decides that an existing coins blockchain and codebase lacks the ability to be easily developed in a way they desire. In a swap existing coins are exchanged (usually 1:1) with a new coin, the old coins are burned (lost) and the new coin is given to the person making the swap. (see BlockNET)
from a technical perspective there are not always clear reasons a swap is truly necessary, a soft or hard fork may be easier or equally functional, but this is a use case made by developers based on their plans and technical expertise
7) Snapshot - An image taken of a blockchain at a specific moment in time, this is then used to create and credit those same private keys with matching coins on a new blockchain that may or may not be related to the original. (see BTX (bitcore))
Fork(hard) - An existing coin and blockchain has code changes that make future block propagation to the chain incompatible, in the event enough people maintain hashing the OLD chain, a hard fork will occur effectively generating 2 tokens/coins from 1 original. In effect it's the same as a snapshot, but the snapshot moment is carried on in perpetuity in both directions. (see Bitcoin Cash)Related terms:
Fork (soft) - A code update to a blockchain that while necessary to utilize new functionality, is not inherently incompatible with the way blocks are found or propagated, in a soft fork both old and new clients can continue using and sharing coins on the chain without a need to divide those pools into different coins.
Burned - when coins are "destroyed" typically by being sent to an address that has no private keys known or held by anyone or anything and thus can never be retrieved
Hashing - the process of searching for a cryptographically significant number that follows the coins formula of block generation (complicated crypto math)
Pre-mine - amount of coin that is created via PoW prior to releasing the ANN and codebase that is typically held by the developer see DASH
Fair distribution - typically a PoW coin is termed to have a fair initial distribution if there's NO or VERY SMALL pre-mine and PoW is released for public mining at the same time the developers initiate the chain allowing anyone paying attention to hash the coin from the start see SIGT
and many more I'm sure I'm not thinking of that will hopefully be contributed by YOU!
ICO - Initial Coin Offering, similar in nature to an IPO in the stock trading world. ICOs are usually offered at a % premium in some model that rewards early investors more than those that contribute later.
Pre-ICO - A new-ish term that is basically just an ICO before the ICO. Although these may appear redundant they are often done to develop funding for bootstrapping initial development/team creation in anticipation of the full ICO which is intended to provide operating capital and/or funds for the service offering of the coin.
Coin - a digital representation of a single unit of a cryptographic asset held on a blockchain typically this will be a unique chain for that coin asset
Token - frequently used interchangeably with "coin" but has a common difference in usage. Tokens generally represent an on-chain asset that is managed using a secondary coin/token's chain (see ERC20)
and many more I'm sure I'm not thinking of that will hopefully be contributed by YOU!
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