So what's the rationale for this block reward system? (11111 / (((Difficulty+51)/6) ^ 2))
As I understand it, the TOTAL distribution per unit time will come crashing down as network hashrate goes up. Not to mention each miner is getting a tinier slice. That's rather discouraging.
Apart from Darksend, I think this is the best feature of the coin. All other altcoins become diluted if they doesn't become a instant success like Dogecoin.
So the early adopter edge becomes even more overwhelming? Nice way to kill a coin. An exchange medium is only worth something if others agree and also have a stake. We'll just end up a small group of hoarders waiting around for something to happen. Reminds me of QRK.
That is overstating things. Reading through the thread, it is abundantly clear that the devs and other early adopters believe in the coin and are not planning a massive dump.
IMO this is a feature -- not a problem or a scam. Basically, it allows for the devs to have a more fine control over how the coin is released into the market; and thus prevents a mid-life dump via multipools and whale miners that troubles many a coin once the price starts to rise. As mentioned above, if a coin is super-popular from the beginning like Doge then there is no problem as it gets distributed to a wide range of miners. Even if whales or whatnot show up later there is a big enough dedicated mining community that in effect prevents these entities from negatively effecting the market.
On the other hand, coins that don't blow up from the beginning and slowly rise in price due to the efforts of the early adopters, inevitably get attacked by these whales/mutlipools -- and the diff increase alone never seems to be enough to prevent a ton of coins of entering the hands of the few. When these coins get dumped... the market crashes. The way Darkcoin is currently set up this cannot happen. And yes, even though Darkcoin is multipool resistant it is still vulnerable to whales (it was actually getting hammered before the diff /reward system was enhanced by KGW).
Now, I know it may seem unfair to latecomer miners and some trolls even went as far as trying to discourage people by calling this a instamine. But the thing is... the vast majority of coins have a high percentage owned by early adopters. That is the reward they get for believing in the coin before anybody else. Due to the diff/reward system Darkcoin might be a little more extreme, but as I just explained that system has a very important purpose.
This is a fair coin. The diff/reward is a feature that allows more fine control over how much coin is released into the market and thus prevents manipulation by dumpers.
Not really mate. If a large percent of coins is being held by a select few then this coin is in jeopardy sorry to say. We can wax poetic all we want about how people believe in this coin but that is just not true. A quick look at the charts wil tell you how trigger happy the so called early adopters are in dumping this coin. Greed rules this free market and lets not bury our heads in the sand here.
The early adopters can and are currently molesting the price to a stand still unfortunately and that is turning away investors and miners. As long as we are still on small exchanges, this will continue and when we eventually hit big exchanges, I expect there to be a huge dump because people are greedy and that is the honest truth.