Quote from: olsn on February 10, 2014, 09:49:57 PM

I don't think the pyramid scheme is the issue here(if there even is one)
A way bigger issue would be the fact that it IS in fact a centralized system - a centralized system is the complete opposit and against EVERYTHING bitcoin and cryptos stand for.

That is true for Bitcoin, but not for all crypto currencies. There are other centralised solutions that are popular and that I believe will become very successful, such as Ripple for example.

Quote from: olsn on February 10, 2014, 09:49:57 PM

You should rethink that.

I appreciate your thoughts on this, but this is kind of the whole premise of this idea.

You have clearly misunderstood the main idea of this coin.

Quote from: olsn on February 10, 2014, 09:49:57 PM

I like the approach that everyone receives a share based on their hash-power - so basically this works like one single huge mining-pool. However, if this works as a single mining pool, why should everyone invest their Hashrate into finding a block, if it doesn't even matter WHO finds the block, since the reward is share-based. You could in this case use the hashpower for actually usefull calculations (scientific, prime, SETI, molecular simulations, ect...) all those operations also return a messureable result, so the reward would be based on those calculated result shares.

You have misunderstood how it would work.

The investors in the coin will NOT provide ANY hashing power at all, and they will not be able to control how the hashing power connected to their coins is used! Their only benefit from"their hashing power" is the dividends from the mining that their coins generates.

All the hashing power will be provided by the company behind the currency (who will direct it to mine in the most profitable pools in order to maximise the dividend per coin). So the company behind the coin will provide both the initial hashing power and the expansion of it, just like a cloudmining company would.

Each coin will be backed by a minimum amount of hashing power per coin at the launch, and this amount will not go down, it will only increase.

You need to think of each coin more like a mining contract with cex.io for example, with a couple of important differences:

1. Since it's a coin and not just a "contract" you can trade it anywhere and in any way you want, just like other coins. You are not forced to use a particular exchange provided by us or anyone else when you sell or buy coins.

2. A contract with cex.io is for a fixed amount of hashing power. They sell them by the Ghz as you probably know. Imagine that each coin sold by us is also backed with 1 GHz per coin.

The difference is that at cex.io the amount of hashing power you have bought will never go up...it stays the same. Therefore the value of those contracts will always go down over the longer term, as difficulty increases.

We will invest more and more into the mining network that is backing these coins, as we raise funds by selling coins.

So you have a coin that starts out with 1 GHz per coin for example, but after the first month that might have increased to 1.2 or 1.3 GHz as coins have been sold and we have therefore raised further funds.

One of the main points of having a fixed minimum (and increasing) amount of hashing power backing each coin is that there will be a "base value" for the coins that people can determine for themselves.

The idea is that this will provide some price stability and make the value of these coins less speculative than a coin whose value can ONLY increase if more and more people continue to buy into it.

For example, if the value of the coins would fall to a level whereby you could recover your investment (from dividend payments based on the hashing power) in a very short period of time, the value would automatically bounce back as the the reward is too high even considering he risk in the coin, and even if you have doubts about the long-term future of the coin.

In that sense I think some of the other "pump and dump" Altcoins are more closely connected with pyramid schemes than this proposed coin, (as Nicholas854 suggested because there would be a 2-level affiliate program attached).

I hope that clarifies the plans we have for this new Altcoin.

I would love to hear other peoples thoughts on this idea, and if there are any experienced coin developers reading this I would love to hear from you by PM!