Topic: [XCR] Crypti | Dapps | Sidechains | Dapp Store | OPEN SOURCE | 100% own code | DPoS - page 608. (Read 804704 times)

I have noticed several people asking about the development funds breakdown and questioning whether or not it was too much. Let me take a second to try and expand on how the funds are being dispersed in order to clarify. I believe the numbers are sound but I hope we can have an open discussion about it here.

The initial genesis block of Crypti will create 100,000,000 Crypti. That will be immediately distributed based on several factors.

Breakdown

75% (75,000,000) will go to those who invested in the Pre-Sale.

15% (15,000,000) will go to the team that created Crypti.

10% (10,000,000) will go to the development fund.

The first section is fairly straight forward. That is the section from which all IPO investments will be paid out. I think where we need more clarification is parts 2 and 3.

The 15%

The Crypti development team has been hard at work for several months designing, developing, and coding Crypti. The team consists of 9 people who have been working what many would consider to be a full time job and most of the members of the team are doing it for free up to this point (myself included). The agreement made with each member of the team is that they will be compensated with a stake in the launch of the product they developed.

Each member of the team has a percentage of this block based on the amount and nature of the work provided in the development of Crypti. The amount designated will be payment for services rendered. This is essentially the money that financed the creation of Crypti and the development up to this point.

The 10% + Pre-Sale

Both portions will be placed into a public wallet and will be granted to the Crypti Foundation for future development of Crypti. This will include the post-launch goals we already have in place, as well as any important ideas brought to the Foundation by the community. This will be the vehicle for the long lasting growth and development of Crypti.

Crypti cannot have a second funding round. The amount of money the team raises right now will be the development funds for the Crypti Foundation for the foreseeable future. This could be the only money the team has to work with for 1, 2, even 3 years. I personally don't even know if enough is being set aside for future development. The only way to raise additional funds in the future would be through donations, which don't add up to as much as many believe they do. We would be lucky to receive 5-10 BTC total in donations over the next 3 years.

The initial BTC raised in the pre-sale will be used for post-launch development and stretched for as long as possible. This will hopefully give the Foundation a chance to reach specific milestones that we believe will increase the valuation of Crypti exponentially. The 10,000,000 Crypti set aside for the Foundation and future development will be held on to as long as possible and will hopefully appreciate in value to help sustain the growth and development of Crypti for the next 10-15 years.

The Crypti Foundation

I know this hasn't been mentioned prior but a Foundation will be formed by a combination of the original development team + influential community members to determine and vote on future developments for Crypti. That Foundation will be in control of the wallets with the funds mentioned above. Details are still being worked out on the charter and exactly how the Foundation will work but I feel like we should mention it to help ease any concerns that all of the 25% was just going back into the developers pockets. The community will have a say in what the Foundation focuses on and what they want for the future of Crypti. We will simply use the funds we've raised in this pre-sale and through the genesis block to make it happen. More will follow closer to the pre-sale start on how the Foundation will work and as always, we are open to suggestions on the best structure for this.

(Sorry to the team if I let the cat out of the bag too early on this one...)

looks well,waiting for the code

Thanks for taking the time to comment. The whitepaper sets aside a couple ways in which typical 2nd generation coins were limited. The main way, as I see it, and this is just me, is in the distribution of transaction fees. You mention NXT so let's use them as an example. In a typical PoS system, the main issue that exists is in the centralization of all of the wealth and earning power. A typical user will rarely ever forge a block, even with leasing their weight to a pool. The majority of the power resides in the hands of the original investors. Proof of Stake at it's core rewards hoarding. In the case of NXT in particular, several of the initial parties control the majority of the currency (as far as I know). When you are rewarding users based on how much of the currency they hold, it doesn't encourage spending, diversification, or innovation, at that point you have simply created a means for a few people to amass and hold small fortunes, making themselves more rich as time goes by.

That is why with Crypti, a new form of "staking" was sought out from the beginning. The PoT / PoC / PoI system was designed to try to eliminate hoarding and even encourage the opposite. In Crypti, users will be rewarded for helping to build out and secure the network by running nodes, but also for spending the currency to validated merchants. So for instance, if down the road DISH network accepts Crypti (like they currently do with Bitcoin), by spending Crypti to pay for your cable bill and get a real service, you are also increasing your weight and chances of forging a block. This is putting money back in your pocket for using the currency the way it was designed to work. The merchant is happy because they pay less fees than with typical transaction costs, and in the end, both parties win.

I see this thinking as a critical step into commerce based thinking and a step away from the amass and hoard fundamentals of a typical PoS system.

Again, this isn't the thoughts of everyone involved with the project, but my thoughts in particular on the matter. I look forward to hearing back from you on your thoughts and I would like to continue to discuss it. The best ideas and developments come from discourse and that is why we are all here!

Edit to add: Also, part of the reason the whitepaper is somewhat less technical was to protect the calculations and algorithms developed for Crypti. The second the information is public it can be ripped off. A proposal was brought up to allow trusted members of the community to audit the code prior to launch and I believe this is a great suggestion and I will push to make that happen. I know the whitepaper isn't very technical in it's current state but that is the reason why. We tried our best to describe as much as possible without giving out details that could be used to duplicate what Crypti is bringing to the table.

Next-generation currencies tried to fix this problem with transparent forging and Proof-of-Stake based systems. While these next-gen Crypto Currencies were a noble attempt at solving the 1st generation problems, we believe they introduced several factors that will limit their long term growth and adoption. In an attempt to minimize the impact of these factors, we have decided to take a different route with Crypti.

-from your "WHITEPAPER"

Could you please elaborate on this? This looks rather vague to me, how exactly are these (other 2nd generation) systems "limited" in ways that you are bettering. Transparent forging is not even functional within the NXT protocol - I doubt you are privy to how it will work and what "limitations" it has or doesn't have at this stage.  

Also, this "whitepaper" is not really a white paper at all - the term is being thrown around alot in these forums these days. I see almost no way to evaluate the strength of this protocol on what is provided here.

*edit - fixed text*

These types of issues are definitely open for discussion until we finalize launch. In this case, I see where you are coming from and it is a reasonable argument. We will be discussing the merits of this matter in depth. If anyone else has any input or ideas on where to pull transaction fees from, how much should be pulled, etc, please post it.

Will track this thread...

What will be min. BTC needed for the IPO per individual?

Definitely watching.

It's ok compared to 20% of simcoins goes to one-man dev team.

25% dev/fund is way too high.

It is 15% then another 10%.....

Also please clarify what auction for the 75%? Thought this was for people invested in the IPO? Or is the IPO members get a cut of the 15%?

Please clarify.

Thanks for your remarks, we will discuss them within the team.

We wanted to keep pre-ANN and ANN cleanly separated, that said you do have a point here and we will consider it next time.

Thanks .

* Source code will provided on quarterly fashion, this is done in order to give Crypti early-to-market advantage against copy/paste clones. NXT, Qora to name a few, are also doing this for exactly the same reasons.

* Self-moderated is only to prevent excessive trolling attacks and keep the thread clean, we will use it only in rarest occasion. All non-moderated history can be always read here: https://bitcointa.lk/threads/ann-crypti-release-june-100-pos-new-source.329670/

* The 100% "pre-mine" will be immediately distributed to the investors, following the pre-sale end, exactly as it was done on other PoS cryptos before.

This is for new readers who haven't seen the pre-ANN.

Thanks for your remark, we will discuss it.

+1 I dont understand. The team easy can use 5-15% of the IPO as payment for development/design.

Why did you close the original thread and opened now a self moderated one?
There was no trolling, nothing, no reason to do it.

Name a coin with 15% premine and succeeded?
Even 2 or 3% is considered bad and you are setting aside 15% 
good luck.

Who are the initial investors? If you raise like 200 BTC, together with the 25% you reserve, I don't see you can run the team for more than 6 months. Don't you worry about short of funding??

I think 15% is high too

Only 15% for developers, it's not so much for 8 people.
All the money that we collect via IPO will not be in our pockets, we have many ideas that will be implemented in the custom blockchains and in Crypti, it's need money.
We will post reports on the funds spent each month (include IPO money and post-development part).