@tempus what do you think would happen if they just didn't stake those billions? Just said, ok the foundations just won't stake at all. I'm curious what the calculations for inflation and distribution would be then.
That's not possible, because of the network. Staking keeps the Blockchain rolling. So they have to stake.
But if we would say, there would be only 0.1% interest rate (just for a calculation-example) and we say they start the project like they did:
3 billion in total
100 mio for the market
2.4 billion "growth-foundations" to distribute the supply.
And let's say the ICO was sold and really in public hands, they could distribute 2.4 mio over time and various ways - like they say. If the public would trust them, without fear of "team-dumping" or that somebody would hack them or whatever, they could distribute it, if they see demand and could hold if not - they could distribute without time-pressure. They could tip little amounts wherever it's possible, pay those who would like to implement it and a Game-Dev would see more value in it, the chance would be higher that he would accept NEU for his work and so on.
They also could control the price, because it would rise with a growing demand = user-growth and they could sell more. They would act like a central bank and over time the growth-foundations would distribute the billions and it would become a decentralized currency.
If it would be really successful the price would explode because there wouldn't be much inflation and I believe that they don't want that. It's a tipping-currency and they don't want too much volatility.
Interest-Rate is also needed to motivate the user to stake, and that's like Proof-of-Work for Bitcoin. So there has to be some more interest-rate.
They could have chosen a lower interest-rate... like 20% and decreasing or just 6%. But it's also the huge premine that makes it complex. That's an issue in itself I believe. Because if they want to give the people some intention to keep their coins and stake, for the best of the network, they have to chose an interest-rate that makes some sense for the usual investor. But with that huge premine --> they will stake always more. That's really a problem at every interest-rate.
Maybe a solution could have been, if technical possible (I'm not an expert): Different wallets with different interest-rates. That the growth-foundations would stake, would keep the blockchain rolling and protect it, but with only 3% interest rate (just a number), but all public users would stake at 100% but decreasing. They would sell 100 Mio and it would become to >200 Mio after one year just out itself ("public-staking") and they could use their billions to invest in games and distribute it with tipping and so on and they could sell, if there should be much user growth.
It would need some time to figure out the best solution for various scenarios, but the current design is suicidal.
Ah very interesting... it makes sense they don't want the price to be too high since it's a tipping currency, but then that leads to the question of why they priced the presale so high. You would think that they would try and do more to get hype or excitement on the forums, maybe had a simple web game that accepts neucoin or something at least that released at the same time the coin did. Where did they expect the price to go if they didn't really do anything at launch? How is that fair to the presale buyers that bought at that price if they couldn't even get enough buyers to sustain that price? I was reading back at the post:
and a lot of the community were saying how they were thinking the launch would be different than other cryptocurrencies, that this coin would have a bunch of uses at launch, thus getting more users etc.
I'm really curious what happened to Darteous now because until I left, he was still very convinced NeuCoin would live up to his expectations. But I don't know, maybe this is what everyone was expecting?? This is the first coin launch that I have been apart of so maybe my expectations were too high? Maybe a coin launches just for the sake of launching, then major features they promised would be released months/years later? Can someone help explain to me? Maybe compare a successful coin launch vs Neucoin's launch vs what happened with Paycoin? And can someone do a tdlr of what exactly happened with Paycoin? All I know is that they promised to keep the price at $20 but that didn't happen.
Edit: These questions are for everyone, please I want to hear objectively from both sides