Topic: What a good coin should have and why - a callout for good devs and concepts (Read 601 times)

The altcoin world needs more unity, not more coins.

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Then you will become part of the solution, instead of part of the problem.

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Hi all!

After traiding and following the alt scene and reading through all those announcements of new coins that really dont bring anything interesting to the table in most cases i just felt like i want to open a discussion about what a good coin needs and why so that coin devs might just build this coin and many can profit from it.

So whats the problem of current coins (and a possible solution)?

Overall its definately the lack of innovation and the lack of new usecases for such a coin - since thats is not as easy to solve i will try to focus more on elements that are easier to implement.

PoW and mining: Yes mining is a problem, simply because it consumes energy which needs to be paid in most cases. Miners often dump to cover their costs and maybe keep a few extra coins. So to maintain value a coin needs investors that invest btc equal to the same amount that new coins get mined each and every day. Proove of Stake is definately a solution here.

What a good coin needs is demand. Yes a coin is best if people use it to exchange or create value, but in the very first step its value needs to be high enough, which is ultimately lead by demand. Before BTC was dropping again i heard a statement like: "There is no reason to sell a coin that is only increasing in value." - And without beeing able to guarantee that, this is what a coin should be aiming for - giving reasons to hold a coin.

So what i imagine is a PoS coin that lets you literally watch the amount of coins you have go up, not just 20% per year, but lets say 20% per month. Critics will jump in and tell me that this kind of inflation is a problem - and i can easily tell you why its not:
All who have coins have the chance to hold their coins and stake them via PoS and beeing able to get those 20% per month (or how much you like). So in theory you could easily imagine that there is no value lost - the price might drop, but the overall market cap could stay the same. Why bothering with it then? - Simply because a high interest rate encourages to buy in early and then hold and have a good return. When you have a 25% interest rate per month, then its better to buy in today than in one month - right? This is espcially useful if you combine PoS with a small part of PoW.
Why do i mention PoW again? - Because some only have their miners but maybe not fluid btc to invest, so they should have a chance to join. But in order to reduce the energy beeing sucked out of the coin its role should be smaller than PoS. This is easily achieved by rather fast reduction of blockrewards. I imagine a reduction of blockrewards of roughly 20% per month. (Doing plans for years is just ridiculous at the moment - any short term plans can be positivly adjusted lateron if needed due to updates and forced forks). So there would be a demand from both sides that positively support each other: Miners have bigger gains in the beginning (the common effect) but at the same time also investors have an incentive to join early to get that interest rate early enough. Further more the high interest rate combined with the blockreduction could easily make a miner think twice, since he could easily switch to investor mode and stop mining with PoW at some point but rather sell the coins he just generates via Proove of Stake/interest rate.
Someone could easily criticise that the early adopters have too much of an advantage - on PoS and also on PoW. The thing is that if this is the case the early demand will be way higher. So if many point their miners to such a coin then this would show a high demand and hence the demand would grow as people see there already is demand. And to even strengthen this effect the PoS of 20% should be reduced by 1% per month in reference to the current value (so we would have 20%, 19,8%, 19,602% etc etc).

The better the concept is (this is just a quick draft that should definately be improved and extended) the more people will join and make the success of a new coin happen. The current problem of almost every altcoin out there at the moment is that there is simply no reason to believe it will be more successful than what we have seen so far and the most promising concepts are always loaded with IPOs and big premines. A good dev team should definately get something out of a good coin, but 0,1% or maybe even 0,01% of a premine of a coin as stated above should easily cover their costs and would hardly impact the coin and its value.
If we want to bring something new and better to the table than bitcoin (and there are tons of things to improve on thatone!!) and really make it successful, then we have to be better than what almost all current altcoins have to offer (if needed we can discuss why certain existing concepts obviously dont make it that far)

Im sure there are many more good ideas - feel free to give your feedback on it in a constructive way. I will try to include good ideas to this first post and improve it.

If there are good devs out there that are interested in making a new good coin happen, feel free to pm me on here.

Thats it for the moment - now its your turn!