So all the big philosophical questions aside, the simplest question is perhaps the most important:
What happens if someone steals/hacks/finds the private keys guarding the FRC's Foundations 80% of all mined coins?
Hack of the Century?
As debatable as the idea of the foundation is, it is also building into the system the greatest weakness: human beings. Where are these private keys? Who has them? How many copies are there? Where will they be stored? You can't build an entire currency system on the premise that the initial genius developers will never, ever, make a mistake.
Not to mention that the government might one day find a way to extort those private keys out of the foundation, one way or another. Not to mention kidnap or ransom techniques by organized criminals.
It is a tremendous Achilles heal.
Honestly, I don't think it matters. If the coins are never used as a currency, it doesn't matter. If they are, the value of every coin once is a tiny drop in the bucket compared to the value of the currency as a means of exchange as each coin is turned over hundreds and hundreds of times.
It does mean the coins are less useful as a store of value because their value might drop if those coins are introduced into circulation suddenly. And it does mean a small increase in risk using the coins as a medium of exchange, again because of the risk you will be holding the "hot potato" on the day a large number of coins are dumped.
But compared to the value of a currency as a means of exchange, this is peanuts.
