There's a really simple solution to all of this called "options" with an exercise date at least one year after the coin is released. This would eliminate ALL pump n dump crap coins.
Hi Joe_Bauers, sorry for my naivety of economics but I'd love a layman's explanation of this.
A dev would be able to allocate a small amount of coins upon creation, but they would't be able to spend them for a specified period of time - say 1 year. This way, the dev would have a vested interest in the coin. I suppose really this is more similar to a bond.
True (call) options also have to be above a certain value (strike price) on the exercise date to be redeemed. This could also be incorporated into a coin, though not as easily.
http://en.wikipedia.org/wiki/Option_(finance)
Better yet, have some kind of parallel mine, but no premine. In other words, the development team would start with nothing, but share 5% of the reward coins generated. If 500 coins are produced in a day, each of five developer, advocate will get five coins sent to their address out of 25 total. With their benefit being based entirely on the long term value and viability of the altcoin, they would have every incentive to maintain a higher, stable value. If the altcoin eventually builds a $10 million market cap, each one would have $100k worth of their own coins, but only after working to build that kind of value.
