Taking XMR as an example as a modern, 0% premine/fastmine coin, you can look at pre-exchange (OTC) trading and notice that you could buy coins for .0005 XMR/BTC or less and mine it very easily. Shortly after, it was .008 XMR/BTC and traded above .004 for a long time. Even now, it's more than double that initial price. So even with a completely fair launch devs can acquire large, profitable stakes because they have 1) an early information advantage and 2) mining difficulty is low. Of course users want devs to be rewarded and to have a stake in what they are working on, but a significant pre-mine (even just 1%) is very risky for a user because of a possible pump and dump.
I think the fairest launch model for a POW coin is for the devs to use their inherent early information advantage and mining advantage as creators of the coin to acquire large initial stakes cheaply. Maybe 10-20 BTC invested at the very beginning of any POW coin + low difficulty mining results in a very healthy sum. Thus, devs have large stakes. Devs have skin in the game. Users who come in later have skin in the game. Everyone's incentives are aligned.
Topic: What would be a fair % premine/instamine? (Read 683 times)
Some people enjoy the risk.
The problem with premine is that you have to have the trust of your audience. Nothing says trust like putting your own money at risk.
The problem with premine is that you have to have the trust of your audience. Nothing says trust like putting your own money at risk.
This may help:
http://bytemaster.bitshares.org/article/2014/12/26/Stop-the-Crowd-Sales-Long-Live-Crowd-Funding
http://bytemaster.bitshares.org/article/2014/12/26/Stop-the-Crowd-Sales-Long-Live-Crowd-Funding
This did help clear the ico ipo on a more technical level , still curious of devs who create pow coins without premine.
I have to assume they have faith in the coin they create and buy when its low, but to have no guarantee of income is pretty ballsy if you ask me. Obviously they could buy their own coin or mine it but that is expense and i still don't see a income or motivation to carry on working unless you hold a decent % of the coin, who wants to work for free.
Again Thanks
I am curious to how a dev would make a living from creating an altcoin, I'm kind of new and would like to know more if anyone has the knowledge please share.
I get IPO and ICO are to create what should be for development etc but where does the Dev make a living if it's for development?
And for the main question if a dev created a POW coin and premined/instamine for development and his work put in etc what would be an acceptable percentage?
Help the noobie understand
Thanks
I get IPO and ICO are to create what should be for development etc but where does the Dev make a living if it's for development?
And for the main question if a dev created a POW coin and premined/instamine for development and his work put in etc what would be an acceptable percentage?
Help the noobie understand
Thanks
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