Quote from: mmmerlin on April 26, 2014, 04:10:50 PM

Quote from: pontikis13 on April 26, 2014, 11:12:04 AM

On a more serious note this situation is a false dichotomy.

Zach is creating the illusion that there are only 2 options for bondholders to chose between. He has named his recent contract change to capped bonds "the original contract" and is claiming that we must chose between the new contract where we have zero guarantees of any sort and the "original" contract which is NOT the original contract.

The refusal to justify any of his scammy behavior by claiming he does not provide legal advice is just comical.

As is already evident by his previous lack of accountability with the 2 week mining for hardware period being extended to pretty much whatever he pleased despite what was agreed upon, unnecessary complete lack of communication, affiliation with BFL, false claims of moving the asset to an exchange, not posting the new contract until the AMA had already started, complete lack of transparency and refusal to answer any meaningful questions it's becoming obvious to almost all of us that Zach cannot be trusted.

As time is progressing Zach is somehow finding him self in control of more and more of our money and we bondholders are finding ourselves in control of less and less of our original investment.

Do we really want to hand over absolute power to this thus far very flaky unreliable person with the knowledge that accepting this false dichotomy may very well be the last we ever see of our money and the beginning of a new very wealthy life for the person that has been deceiving us?

As more and more people are realising and pointing out, this is the pertinent point here. Some have called it the "bait and switch", but I think that the phrase "false dichotomy" describes it very accurately. This new contract is being offered to obscure the previous unilateral change to fixed rate contracts which broke the spirit of the original agreement.

The fact that bonds were going to be proportional was represented until very recently, and saying that the original contract never guaranteed that is disingenuous at best, and criminal at worst.

On top of everything else, ask yourself this: if the contracts were always going to be fixed to 100MH/s (or 300MH/s) , why would he expect that anyone would consent to hold back mined coins for reinvestment if rates are fixed? Clearly this is money comes out of investors' pockets, and a fixed rate contract guarantees that it will never be recouped, by definition. At the time, a poll was taken and a >50% majority decision was reached where this was considered a good idea for everyone, but not a single one of those people would have thought that to be a good idea if bondholders were not going to profit from that reinvestment.

This is just one of numerous examples showing that Zach, many months after the "IPO", knew what the spirit of the original agreement was and was intending to keep to that. Then suddenly something changed, and now we are being offered a "choice" to mask the fact that this was ever the case, along with the option to waive any rights we had under the actual original agreement.

It has been a long wait but the cards are finally down, all that remains to be seen is how the dust settles.

Agreed...

Lab_Rat has stated that he will not honor the intention of the original agreement. Therefore, here's what I see coming:

Since Lab_Rat will not honor the original agreement from Page 1 of this thread, then he needs to buy back "contracts" from any investor who so desires. By original agreement, I mean the one from page 1 of this thread, pertinent information is quoted below), NOT the falsely stated 100 MH/s LOCKED contracts Lab_Rat has tried to get us to accept. If he does not offer this, or other acceptable compensation, I believe he will see a law suit. I for one am very interested to see who all is inclined to join this lawsuit.

It's sad really. We all wanted and hoped that Zach would honor the original agreement so that we could all profit from this venture. It is very sad that he has basically forced us all into this position.

ORIGINAL Agreement from Page 1 of This Thread.

Quote from: Lab_Rat on July 06, 2013, 11:19:18 PM

Lab Rat Data Processing, LLC

LabRatMining

Official Announcement

Lab Rat Data Processing, LLC, a NJ company, operating under the trade name, LabRatMining is a company that will be operating as a mid to large scale miner for Bitcoins paying out dividends/returns to bondholders. Each bond in the company represents a portion of the overall hashrate owned and managed by LabRatMining. LabRatMining plans to expand mining operations to maintain a presence in the mining community for years to come.

Bond Structure It is intended 100,000 bonds will be sold during the IPO. These bonds represent the hashrate that these machines produce rather than the hardware itself. This allows for control of the company without taking mining profits from investors and bondholders. Future bond offerings of the company will be funded by intended additional sales in increments of 50,000 bonds.

Dividends/Bond Value Each bond will receive a minimum of 100MH/s* worth of mining profit in dividends/returns (all dividends are intended as contractual returns based on investments and may simply be referred to as dividends for future purposes) on a weekly basis. The first payout will be at the end of the second full week mining. If the entire 100,000 bond IPO is not sold immediately, bonds will represent an equivalent portion of the processing power included in the operation at that time. If it occurs that multiple installments of hardware are required to fulfill the IPOs expected hardware, the earnings of each installment will begin to be paid out in dividends on the second full week of each installment. Dividends will be paid out on Saturdays ~12 noon Eastern Time(UTC -0500.)

*Plans for Expansion It is intended the IPO will result in at least 10TH/s being controlled and paid out by LabRatMining on a weekly basis. The 10TH/s current estimate is subject to increase depending on the speed at which the IPO is completed allowing for further expansion.

The next installment will be offered up in bonds at the beginning of the week following completion of the IPO. This set of 50,000 bonds will be put up for sale @0.25BTC/bond or market value +-5% at the time of the bonds being issued, whichever is of greater value. This installment will add at least 15TH/s to the companies mining operation, and with it will follow an increase in dividend payout to a minimum of 166.67MH/s per bond (this may increase depending on company expansion). This not only gives the new investors an increase in dividend payment, but gives greater benefits to the initial and early investors.

It is intended the third installment will likely mimic the second installment thereby potentially increasing the companys total hashrate to 40+TH/s which will in turn bump the dividend payout to 200+MH/s per share. All the forgoing and following estimates presume a fully sold out bond/contract offering and returns for mining based on certain historical data for returns of similar operations.

It is intended installments in the operation will continue to occur which will provide more value to the company as well as more value to each individual bond as the company matures. These expansions, if they occur, will likely grow the company and our mining capacity in size which will provide further expanded payouts in the form of dividends (or increased dividends to investors). It is currently intended a portion of the money the company receives in revenue from bond sales and mining will be used to expand the operation which will further increase dividends per bond. It is currently intended the company will be adding to the bondholders hashrate on a regular basis as the company expands so one should expect to receive greater dividends than those explained above.

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MODIFIED Agreement from Page 166 of This Thread.

Quote from: Lab_Rat on March 08, 2014, 06:16:32 PM

CHANGE IN PAYOUT RATE STRUCTURE

Cryptocurrencies, which includes Bitcoin, are relatively new to the world economic communities and its governments. Worldwide there continues to be almost daily announcements from governments regarding crypto currencies. Lab Rat Data Processing, a Limited Liability Company in the state of New Jersey, continues to monitor those announcements and the ever-changing laws and economic environments and how those laws impact cryptocurrencies, including Bitcoin, and in particular Lab Rat Data Processing. Most important to Lab Rat Data Processing are the ever-changing laws and/or announcements from the United States and its governmental agencies and the state of New Jersey and its governmental agencies.

Based upon recent developments in US and local laws, Lab Rat Data Processing, and their legal representatives, have determined a potential current or future problem with its current rate structure, which was originally intended as a variable rate payout. Therefore, Lab Rat Data Processing is amending its variable rate payout with a set rate payout of 100 MH/s per contract. This rate payout shall be for all current contract-holders and all future contract-holders. Contemporaneous with the change from a varying rate payout to a set rate payout Lab_Rat will triple the amount of contracts held by all contract holders as of the date of March 8, 2014. Therefore, for all current contract holders on their current contracts, the effective rate will be permanently set at 300 MH/s per contract. All future contracts purchased will be at the new rate of 100MH/s.

Lab Rat Data Processing will continue to monitor developments for cryptocurrencies and Bitcoin in particular, seeking to maintain its current status as a leader in the Bitcoin community and to maintain compliance with US and New Jersey laws.

More information to come.

Highlighted by me.