Author

Topic: In Defense of a Premine Coin Development Fund (Read 458 times)

member
Activity: 98
Merit: 10
Having no premine, fair block rewards, with a fair announcement, can leave most devs virtually coinless for all their hard effort.
 

Sorry, my uncontrollable laughter stopped me from reading past that line, referring to what the "devs" of altcoins do as hard effort.  Hell, referring to them as devs is already a stretch in most cases.

I'm working on developing a coin. I could go to a coin cloner and probably have it launched within the next week, but I'm not.

Just because there are scammers, doesn't mean there isn't people working hard. If I wasn't self-employed, I wouldn't have the freedom to do what I'm doing. Technically, I'm getting paid to develop a coin - most people can't say that. And even though I can, it's not like I'm getting paid MORE to develop a coin, I'm actually dedicating less time to other work so I'm making less money than before I started this project.
legendary
Activity: 1750
Merit: 1007
Having no premine, fair block rewards, with a fair announcement, can leave most devs virtually coinless for all their hard effort.
 

Sorry, my uncontrollable laughter stopped me from reading past that line, referring to what the "devs" of altcoins do as hard effort.  Hell, referring to them as devs is already a stretch in most cases.
hero member
Activity: 826
Merit: 1000

Most coins which announce a Premine get ridiculed instantly by some trolls, but is there ever a time when a Premine is justified?

Having no premine, fair block rewards, with a fair announcement, can leave most devs virtually coinless for all their hard effort. The coins are held by big mining bag-holders or lucky speculators who manage to scoop up chunks when the coins first hit (or get dumped carelessly) on an exchange.

Coins without premines often have massive block rewards at the start, as devs try to compensate themselves for their hardwork and effort. Massive block rewards and super random blocks can often overly enrich the devs and early miners who steam in to mine the coin. The worst case scenario can also occur where the devs are able to mine some coin at the start, but are soon crushed out of the process by massive miners moving in and sucking out all the coins.

Ironically a premine stated when a coin is launched, is far more transparent than dishing out massive early block rewards. Mining a coin in its early weeks is always going to be beneficial as the difficulty is low and the hashrate too.

 
A situation whereby there is a Premine Coin Development Fund may solve these issues, the fund should be transparent and the rewards for work needed should be acceptable.

Coins need marketing and pr, they also need exchanges and down the line who knows what hurdles will appear, a coin with a foundational development fund should be able to navigate these hurdles better than those with none.

Some coin holders are sitting around waiting for the devs to do everything, the devs ask for donations but receive the bear minimum in some cases, the coin bobbles along without reaching its full potential, and everyone loses.


Crypto coins have such huge potential. Without getting into the possibilities of what lies ahead through Ethereum and other similar potentials for cryptography, at the moment what Altcoins mainly offer is a new type of financial product. This is often overlooked or somehow considered dirty, however the dissatisfaction with banks and the present financial system is at the forefront of everyones minds.

Bitcoin is brilliant in that amongst other things it offers a new kind of payment system which cuts out the middlemen. There is also space for Altcoins to create solid and lasting financial products with value. Examples could be the local crypto coins, pushed and supported by local communities and held as a safe store of value by investors across the world, and also coins which have a solid niche or offer a real world product or service which you would need to own that particular Altcoin to use.

Ultimately the longterm success of any alt will depend on it's community of supporters and traders. The foundation of these coin communities are the developers who created and who nurture the coin through its existence. These dutiful devs deserve support and deserve reward for their labours.

Yes Premine is a dirty word in the crypto community. A Premine misspent or dumped on fledgling investors is a great travesty. However for the right developers a Premine Development Fund which can help them grow the coin and sustain it for the long term should be supported and accepted by all.


( from my blog: http://altcoinspeculation.com/in-defense-of-a-premine-coin-development-fund/ )
 

Your delusional please see a doctor asap
legendary
Activity: 1722
Merit: 1051
Official DigiByte Account
Thanks for the link, it looks like the community is still divided as to whether its good or necessary,

Of course it all depends on what the premine is, what its used for and who the devs are,

What about a dev fee from each block 0.1% or 0.25% have any coins tried this ? it might ensure longevity for the devs, and stop them abandoning the coin ...
You make some very good points in your post! We did a 0.5% with DigiByte and are now less than 0.25%.

Please check out DigiByte: https://bitcointalksearch.org/topic/digibytedgb-core-v61651-digishield-digispeed-segwit-408268
member
Activity: 85
Merit: 10
Thanks for the link, it looks like the community is still divided as to whether its good or necessary,

Of course it all depends on what the premine is, what its used for and who the devs are,

What about a dev fee from each block 0.1% or 0.25% have any coins tried this ? it might ensure longevity for the devs, and stop them abandoning the coin ...
full member
Activity: 126
Merit: 100
https://bitcointalksearch.org/topic/m.5410857

nobody's falling for that..

 Kiss

edit: I'm not a troll!
member
Activity: 85
Merit: 10

Most coins which announce a Premine get ridiculed instantly by some trolls, but is there ever a time when a Premine is justified?

Having no premine, fair block rewards, with a fair announcement, can leave most devs virtually coinless for all their hard effort. The coins are held by big mining bag-holders or lucky speculators who manage to scoop up chunks when the coins first hit (or get dumped carelessly) on an exchange.

Coins without premines often have massive block rewards at the start, as devs try to compensate themselves for their hardwork and effort. Massive block rewards and super random blocks can often overly enrich the devs and early miners who steam in to mine the coin. The worst case scenario can also occur where the devs are able to mine some coin at the start, but are soon crushed out of the process by massive miners moving in and sucking out all the coins.

Ironically a premine stated when a coin is launched, is far more transparent than dishing out massive early block rewards. Mining a coin in its early weeks is always going to be beneficial as the difficulty is low and the hashrate too.

 
A situation whereby there is a Premine Coin Development Fund may solve these issues, the fund should be transparent and the rewards for work needed should be acceptable.

Coins need marketing and pr, they also need exchanges and down the line who knows what hurdles will appear, a coin with a foundational development fund should be able to navigate these hurdles better than those with none.

Some coin holders are sitting around waiting for the devs to do everything, the devs ask for donations but receive the bear minimum in some cases, the coin bobbles along without reaching its full potential, and everyone loses.


Crypto coins have such huge potential. Without getting into the possibilities of what lies ahead through Ethereum and other similar potentials for cryptography, at the moment what Altcoins mainly offer is a new type of financial product. This is often overlooked or somehow considered dirty, however the dissatisfaction with banks and the present financial system is at the forefront of everyones minds.

Bitcoin is brilliant in that amongst other things it offers a new kind of payment system which cuts out the middlemen. There is also space for Altcoins to create solid and lasting financial products with value. Examples could be the local crypto coins, pushed and supported by local communities and held as a safe store of value by investors across the world, and also coins which have a solid niche or offer a real world product or service which you would need to own that particular Altcoin to use.

Ultimately the longterm success of any alt will depend on it's community of supporters and traders. The foundation of these coin communities are the developers who created and who nurture the coin through its existence. These dutiful devs deserve support and deserve reward for their labours.

Yes Premine is a dirty word in the crypto community. A Premine misspent or dumped on fledgling investors is a great travesty. However for the right developers a Premine Development Fund which can help them grow the coin and sustain it for the long term should be supported and accepted by all.


( from my blog: http://altcoinspeculation.com/in-defense-of-a-premine-coin-development-fund/ )
 
Jump to: