Post
Topic
Board Altcoin Discussion
Re: Using Oracles, PoW, and Recurring "IPOs" to Distribute PoS Cryptos More Evenly
by
CoinHoarder
on 07/07/2016, 20:00:50 UTC
I have realized that at the annual auctions the price will go at (or at least very near) to the current market value, so it is not the benefit to late adopters that I initially thought it may be. It does however solve at least one of Anonymint's gripes with PoS... that the coin supply is set at a finite amount, and there is no way to fairly issue more coins after the original IPO. Possibly also this gripe: "attacking the coin is a one-time cost of stake that sustains forever, whereas for Proof-of-Work the attacker must continue to expend resources on mining to maintain an attack[2]".

I have also recently been thinking that it may be better to have annual block-limited PoW phases to distribute the coins instead. The number of blocks should be lessened with each annual period until a small amount is reached and issued annually in perpetuity (a tail emission).

Equilibrium will be reached similar to the auction idea... if mining is too profitable, then more people will mine it which will raise the difficulty... and visa versa. It is the same way equilibrium is reached with other PoW coins.

So, the current idea is something along the lines of:

A. Far advance warning of an cryptocurrencies' distribution/fundraising, with a clear objective and roadmap for the project and a set timeframe for the distribution/fundraising.
B. A working closed source beta, to be open-sourced after the original distribution period
C. PoW distribution (50% of the genesis stake)
Ca. Use several different mining algorithms, with each having an their own separate difficulty and the same chance to find the next block (implemented in several coins.. MyriadCoin was the first)
Cb. Use at least one algorithm per different types of mining hardware (one for Scrypt ASICs, one for SHA256 ASICs, one for CPUs, one for ATI GPUs, one for NVIDIA GPUs, etc..)
Cc. The point of this is to allow people with all types of minin hardware to participate so it is inclusive of everyone.
D. A regular IPO distribution (50% of the genesis stake)
Da. This is to allow people to participate in the initial distribution that do not want to hassle with mining equipment.
E. Launch said closed source beta into the wild after the distribution/fund-raising has occurred and switch to PoS
F. To mitigate claims of having an unfair PoS distribution to early insiders...
Fa. Have an annual block-limited PoW period that issues more coins to PoW miners.
Fb. The amount of tokens mined in the annual PoW periods should be reduced each year until eventually there is only a small amount of coins issued annually in perpetuity (aka. a tail emission).
Fc. This is intended to mimic the block reduction scheme and distribution of most PoW currencies, but with an added tail emission.