In case the community shall give a principal agreement for the following proposal, I wish to ask Ohad, to halt the current ongoing ICO after reaching the total sale of 21 million tokens. In addition, I wish to ask Ohad to freeze the sum of 19.74 million tokens in favor of the following specified monetary plan, or any other plans which are offered and accepted by the community.
1.
Block Rewards:It seems that the PoW consensus paradigm will be used in Agoras. Currently there is no plan to assign coins in favor of Block rewards. The mechanics of the PoW consensus without block rewards is an experiment that was never tried before in any other coin, and is considered by many to be unfeasible for implementation (even in Bitcoin in 30 years time). At first, the Agoras economy is expected to be of a relatively low market value, and to have relatively few users and transactions. I therefore predict that the underlying network will not be sufficiently secure without the use of block rewards. I suggest assigning 5% of the total number of coins, equaling the sum of up to 2.1 million tokens, to be used for block rewards. These will spread out over many years, to ensure network security. If we avoid assigning coins to this purpose now, and all the tokens offered for sale are sold, it will be needed to "print out" additional coins over the planned maximal amount of 42 million tokens.
2.
The distribution of Agoras coins to Bitcoin holders, in exchange for Bitcoin burning:Agoras will posses superior technology which will enable it to replace Bitcoin as the number 1 cryptographic currency. The probability to achieve this goal is greater if we chose to involve the Bitcoin community in the Agoras economy, and if we can create monetary continuity between the Bitcoin and Agoras market value. To achieve this, I suggest building an automated mechanism which distributes to Bitcoin holders, up to 42% of the total number of Agoras coins, equaling up to 17.64 million tokens, in exchange for the burning of up to 21 million Bitcoins. Such mechanism will be active in time and quantity limited steps. In the creation of Bitcoin, the more we move forward on the time line,
the less coins are minted, for a higher value, to a larger number of users. Differing from this mechanism, I suggest that the distribution of Agoras in exchange for the burning of Bitcoins, as mentioned above, will be done in stages.
During the initial stages, a small number of coins will be offered to for a reduced price, and the more we move forward on the time line, the number of coins for distribution will increase along with their price.For example:
In the first stage:100,000 Agoras coins will be distributed in exchange for the burning of Bitcoins, according to an exchange rate representing a market value of about 210,000 Bitcoins for the entire Agoras economy. Such stage will be valid until the completion of the specified quota, or the completion of 6 months after the genesis block.
In the second stage:270,000 Agoras coins will be distributed in exchange for the burning of Bitcoins, according to an exchange rate representing a market value of about 231,000 Bitcoins for the entire Agoras economy. Such stage will be valid until the completion of the specified quota, or the completion of 7 months after the genesis block.
In the third stage:474,000 Agoras coins will be distributed in exchange for the burning of Bitcoins, according to an exchange rate representing a market value of about 254,000 Bitcoins for the entire Agoras economy. Such stage will be valid until the completion of the specified quota, or the completion of 8 months after the genesis block.
And so on… Agoras coins which will not be distributed will be destroyed.
The initial price of Agoras, in the distribution phase in exchange for Bitcoin burning, needs to be significantly higher than the price paid by investors in the ICO, yet significantly lower than the price which represents the entire market value of the Bitcoin economy. For example: a price which represents a market value of about 210,000 Bitcoins to the entire Agoras economy.
Due to our ambition, that Agoras will replace Bitcoin as the number 1 cryptographic coin, and reach a higher market value, the final distribution phase price, must be significantly higher than the price which represents the entire value of the Bitcoin economy. For example: a price which represents a market value larger than 50 million Bitcoins to the entire Agoras economy.
I propose that the above mentioned distribution mechanism will transfer the Agoras coins only after 1000 confirmations where reached for the Bitcoin burning transaction (or any other prolonged period). This is necessary, in order to reduce the usage of such mechanism for short term speculations, and mostly, in order to reduce the lack of trust in the Bitcoin network. It might be that certain miners will try to hurt the mechanism by approving a burn transaction and afterwards move to a different chain which does not approve this transaction.
Questions and answers:
Q:
Why you suggest to freeze 19.74 million tokens and not a different number?
A:
In the post in which Ohad presents the conditions of the ICO for Agoras (
https://bitcointalksearch.org/topic/m.10403838), he designates 50% of the tokens for the ICO, and 3% of the tokens for funding post genesis development of Agoras. He does not present designation for the additional 47% which equals 19.74 million tokens.
Q:
What will happen if the ICO sells less than 21 million tokens?
A:
I suggest keeping a relative amount of 47% of the total number of Agoras coins for the suggested monetary plans. If only 10 million tokens are sold, respectively, I suggest assigning to the monetary plans only 9.4 million tokens.
Q:
What shall happen after all block reward coins are distributed?
A:
The same problem also exists in Bitcoin. The coins assigned for block rewards will be spread out over many years. For example: over the period of 40 years. In 40 years time one of the following solutions will probably be implemented:
1. Agoras will not exist and will not be needed.
2. Agoras coins will be of significant value, and the underlying network will sustain a large number of transactions, so it will be possible to base network security on commissions alone.
3. The consensus mechanism will be changed to PoS.
4. A different consensus mechanism than PoW or PoS will be found and implemented.
5. If none of the above specified scenarios materializes, and no other solution will be found, we will be forced to "print out" a small number of additional coins, in order to assign them to block rewards for additional years to come.
Q:
The tokens suggested to be frozen will not be offered for sale in the ICO, and thus less money in raised for development.
A:
Not necessarily. There are still 14 million tokens for sale and this is a vast amount. Ohad can update the tokens price to reach optimization so enough funds are raised for the sake of development.
Q:
I principally agree to the freezing of tokens for future monetary use, but not to the presented plans and numbers.
A:
The current suggestion is only to freeze the specified tokens until the community makes a future decision over Tau, what to do with them. Tau will provide tools to create a better decision mechanism than what is presently available. All presented figures are purely intuitive, without mathematical optimization, and are aimed for demonstration purposes only. The community will be able to perform optimization for these figures over Tau.
Q:
What is the actual amount of Agoras coins that will be distributed for the sake of burning Bitcoins?
A:
One of the main goals of this plan is to create monetary continuity between Bitcoin and Agoras and to facilitate Agoras as the number 1 cryptographic currency. Therefore, we wish to allocate for distribution the amount of Agoras coins in return to the burning of 21 million Bitcoins. We have a definitive proof that not all of the allocated Agoras coins will be distributed during this process due to the fact that not all 21 million Bitcoins will be burned proportionally.
The amount of Agoras coins to be distributed during this process is dependent on the future market price of the Agoras coin. It is reasonable to assume that if the market price of Agoras will be marginal, no Bitcoins will be burned in the process, and no Agoras coins will be distributed respectively. If the market price of Agoras will be high, a small amount of Bitcoins will be burned in the process and a small amount of Agoras coins will be distributed. In case the market price of Agoras will be considerably higher (representing a market value of at least 50 million Bitcoins and more), a large amount of Bitcoins will be burned and a large amount of Agoras coins will be distributed.
* thanks to mr. coinzy for translate this proposal to English.
