Topic: [Havelock] Bitcoin Difficulty Derivative (BDD) - page 85. (Read 290305 times)

Wait, so what's happening with your "porn site"?  Is that still a thing?

Glad to hear it! I've missed DMS, so I'm excited to bring a form of it back to the market.

1) I've went cross-eyed writing this over the weekend; do you mind pointing it out for me? If it's the 'Difficulty is 1,000,000' part, I'm realizing that I left that in and should not have.
2) EXCH will be manual, but I am on the internet from around 9-5 Eastern on weekdays and am normally Internet connected outside of those hours as well. I'll be checking throughout the day to see what comes in, but transfers will be most often done between 7AM to 11PM/12AM Eastern Time. All transfers will be processed within 24 hours.


I believe you're calculating the dividends for a 5MH/s miner, like DMS, correct? BDD will be a 5GH/s miner, so the daily calculation for me is coming out to 0.00114617 (Wolfram Calculation here). The plan is to, after the 'End-Game', restart the funds anew with a more appopriate hashrate each time.

Both Havelock and I have agreed that a funds-lock on the Issuer account (how the set up all Issuer accounts) would be the best for the speculators. I have thought of the possibility your scenario; I know that I won't run with the funds, but no one else can know that as a certainty. Allowing fund buy-backs is a crucial part of the speculation process, so I didn't want to get rid of that part. I'm open to any other options that speculators might propose for increased capital security.

Regarding the bot, this is something that I would like to institute as the fund progresses. I don't believe that the Havelock API allows funds transfers, but that's something I'll be looking into, if it doesn't, seeing if they can enable in the future.

Thanks to both of you for questioning and commenting; I really want to engage with the community for the security and also ensure that there aren't any calculation or operations gaps that neither I or Havelock have caught yet.

Edit: Grammar and Wolfram Calculation

You're a factor 1000 off. BDD uses 5 GHash/s for it's MINE-unit, not the 5 MHash/s that DMS had.

Agreed. The issuer-account needs to have the ability to transfer shares or the whole system doesn't work. That means that the issuer account could freely transfer shares to a secondary account from where they can be sold. The only way to make this system work without having to trust the issuer is if Havelock itself handles all share-transfers and all the issuer does is schedule some dividends.

It does. I can't recall whether or not a share-transfer-function is part of the API (I think it is, but not sure), and the site isn't cooperating with me at the moment, so can't look it up.

But I agree, while this security can be done with manual transfers (Deprived did it for quite a while), it's much more interesting if transfers are automated and therefore a quick exchange is guaranteed.

Yay from me, too!  

But....

a few minutes ago, difficulty changed to 2,193,847,870. According to the formula, dividend for MINE would be 115 satoshi. 200 days of MINE would make this 23000 satoshis or 0.00023000 BTC. With the next difficulty change you'll end up probably below your threshold of 0.0002 BTC and have to force-buyback all assets according to your rules.
Yes, I was wrong, it's GHash, not MHash.

And the escrow doesn't make any sense. This was discussed before, you could simply create another account and send yourself thousands of assets for free, sell them on the market and then withdraw. There is no way to prevent an issuer to scam. You have to trust the issuer that he does everything in favour of the investors.

Does havelock offer API access? Without a bot on your side for changing EXCHANGE into SELL and MINE within a few minutes it would be only half the fun for investors.

First of all, I like DMS-style securities, so yay!

Secondly, I have 2 questions:
1) Are you aware that there is a critical error in the calculations in your difficulty-increase example?
2) How will you handle exchanges of the EXCH asset for MINE & SELL? Manual (if so, how frequently) or automatic?