Re: [ANN] Counterparty Protocol and Client (built on Bitcoin)

How is the BTC burned? Does that mean I lose the BTC forever? How is this accomplished, technically?

The BTC are given to Bitcoin miners in fees. That makes them impossible to get back.

So, if XCP will become popular, any pool, ghash.io for example, easily can create infinite quantity of XCP with such "burning" of BTC.
Scheme is very simple:

Code:

1)create burning transaction
2)don't distribute it over the network
3)get back our btc as miners
4)get xcp as burners
5)???????
6)PROFIT

Am i right?

Hmm. You might be, indeed. I didn't think of that.

We may need to switch to destroying coins by sending them to an unspendable address.

I'm patching counterpartyd right now to switch over to this new burn method, which, I think, is necessary. Thanks for the tip, bootch.

Of course, don't burn on mainnet with the old way yet (the burn period hasn't actually started, though)!