Some questions:
This is the distribution, if it's still actual:
"Three billion pre-mine allocation:
- 2.4 billion held by the three non-profit foundations: 0.4 billion - Code foundation / 1.0 billion - Growth foundation / 1.0 billion - Utility foundation
- 0.2 billion retained by founders for $1 million of work invested
- 0.1 billion sold to initial seed investors for $250,000
- 0.2 billion sold to strategic angel investors for $1 million cash invested
- 0.1 billion to be sold in presale to crypto-community"
And this is the PoS Rate:
"NeuCoins economic model uses very high PoS awards, starting at 100% per year in year one and gradually declining to 6% by year ten."
They also say:
"In contrast to virtually all previous digital currencies with pre-mines, all NeuCoins held by the founding team, seed and angel investors are subject to strict re-sale provisions for five years (each of these holders may only sell 2% of their holdings per month in the first year, (...)"
And if just 100 Mio Coins now are in the hand of the Community, all the other Coins has to be seen as potential inflation. Even if the "Non-profit-organisations" never would sell a single Coin, the founding team, the seed investors and angel investors hold 5 times more Coins than the community, so they will stake much more than the community and they'll sell at least 2% of their holdings per month what means 24% of their holdings in one year. And they'll stake their holdings, so their Coin-Amount will increase at the same time they sell. Right?
That would be a huge inflation and just if the three "non-profit-organisations" won't sell a single coin and those who hold 5 billion Coins now and stake them just will really "just" sell 2% per month and 24% per year.
Am I right with that? Because if I'm right... how will it be possible that the price won't go down like a stone in the sea?
By the way: What will happen to the Coins the "non-profit-organisations" hold? After one year they'll hold 4,8 billion Coins through staking, right?. They'll never sell or do they sell 24% per year as well?
This is also interesting, and a little bit weird:
Illustration of how the re-sale restrictions work in practice
Consider an angel who owns 1 million NeuCoin tokens on the day of launch. For the first month after launch, the angel cannot sell any NeuCoins; indeed the angel does not even have any access to the private keys for his/her tokens. During the month, assume the angels NeuCoins grow to 1.08 million due to POS rewards. At the end of the month, 2% of 1,080,000, or 21,600, would become unrestricted and sent to the address of the angels choice. At the beginning of month two, the angel has 1,058,400 restricted NeuCoins. During the month, assume this restricted coin balance grows 7.9% from POS rewards to approximately 1,142,000 coins. At the end of the second month, 2% of this balance, or 22,840 coins, become unrestricted, and will be sent to the angels address. And so on.http://forum.neucoin.org/t/how-the-neucoin-community-can-monitor-the-foundations-and-teams-neucoin-token-holdings-over-time/1526But if I understsand it right, it won't be just 22,840 new Coins, because that's just an example of one Angel Investor who owns 1 million Coins. The problem is, if I'm right, there are 500 Mio Coins in the hand of seed and angel investors and the founders, plus the staking. So it has to be multiplied by 500.
22,840 * 500 = 11,420,000 new Coins at the end of the second months. At the current value that would be 685 BTC.
And at the end of every month they'll sell more, because of staking. What does that mean? The market will anticipate that and drop at/before the end of every months... Even if there would be a potential user growth that could potentially catch those coins, just to hold the current value, the uncertainty will have some psychological impact. And it's very unlikely that this project will attract so many new Investors just to hold the value.
Plus: If the price won't rise after some time, the experience after ICO's have shown, that the price goes down, because Investors lose patience.
Honestly: Am I wrong with something I'm writing here? My problem really is that I think I must be wrong... or that this is the strangest distribution-model ever. If I'm right this Coin has no chance because of the mathematical design and the psychological impact it has.
And for me it's still uncertain what will be with the 2,4 billion Coins of the "non-profit-organisations". What does that mean: non-profit? They won't ever sell any Coins? Or will they sell 2% of their holdings as well? Because that would mean: plus 66,236,000 new Coins at the end of the second month = 3974 BTC at current value.
Anybody?