I was surprised to see this topic brought back.. oh the memories LOL
Barr that is an interesting idea.. i seen it brought up waaaay back but it was a matter of who pays the bill.
For example if a coin is still limping along on at least one exchange (no matter how low the value) then what ?
people are not going to want to destroy their coins if they still have *some value i think.
So what do you do ? Buy them from them ? or exchange for some other coin ?
doing that *could actually cause a resurgence in a dead coin getting guys to round up old coins to cash them in
sort of like collecting beer cans to return them for the deposit..
As long as a coin is listed on an exchange and people are buying, people are still becoming bagholders. And as long as there are 2 bagholders and 2 nodes, the coin won't die.
So we offer a 30-day period to burn the coins and exchange them for BARR. During the burn period, we attempt to keep adequate buywalls on exchanges for people who just want to dump instead of exchanging. (That gives them a simpler option to get out of the coin, and also it keeps most of the dumpers out of BARR.)
But at the end of the 30 days, we stop buying of course. If the coin deserves to die, and most active users switched to BARR, then the market will crash as soon as we stop buying. Or, hopefully, there won't be enough coins left to keep a market open anyway.
As to who pays the bill - obviously we don't have enough BTC to buy all the altcoins. But as long as the trading activity is roughly equal between BARR and the altcoin we're currently burning, it will balance itself out and there will be enough people buying to match the people selling - the only way to "mine" BARR is by burning altcoins, so people will buy the altcoins to get BARR. But only for 30 days.
When there is finally some real volume for these altcoins, we will see how many people really want to keep their coins, and how many of them will gladly sell their coins even knowing that the coins will be destroyed.
We've put a lot of thought into how we can limit market manipulation, so we have restrictions on which coins will be accepted. No brand-new coins, no coins with huge stake rewards that can regain a big supply after we burn most of it. If it doesn't look like there will be a lot of participation for a given coin, we'll probably skip it. But even if we offer it for burn redemption, the worst that can happen is that we only burn a few coins.
Someone here has predicted that we'll only burn 1% to 5% max of a coin's supply; I predict that very few people are emotionally attached to their altcoins, and most are desperate to get rid of them and will jump at a fair offer.
Hopefully the main people who benefit are the ones who already hold the coins. Just like a normal coinswap/hardfork/new blockchain, the main holders of Altcoin2.0 are the people who were already holders of Altcoin1.0. So the main holders of BARR will be the people who already mined and held these altcoins. The purpose of buywalls is to keep the price of the altcoins up during the swap, so nobody can get tons of BARR for cheap and then dump it, so the people who swapped their altcoins will be getting a valuable BARR instead of a worthless BARR.
