Post
Topic
Board Announcements (Altcoins)
Re: [BCN] Bytecoin (CPU-mining, true anonymity)
by
smooth
on 23/05/2014, 06:57:21 UTC
I'm not sure that lockup/vesting can ever really be made to really work. You can always sell your interest even if the system won't let you actually transfer it. I can sell you the private key(s), under the protection of traditional contract law and the courts that to convince you that I didn't keep a copy.  Failing that, I can also put we can some Bitcoin in an escrow to secure the deal. etc... all undetectable to the outside world.

What I think you are missing here -- and I think this is why lockups work even though they are evadable even outside the crypto space -- is that they are an efficient signal. It costs nothing to agree to a lockup if you really are committed to stick with something long term (if it is successful, otherwise it doesn't matter) and not pump and dump. But if you are not committed, agreeing to a lockup (likely with at least some sort of enforcements mechanisms) imposes costs on you, if only to evade it. So what we expect to see is legitimate risky ventures (which includes virtually none in the altcoin space with the possible exception of etherium) having lockups and scams avoiding them. Of course there is a red queen problem -- eventually everyone will have a lockup and it signals nothing, but then you have still raised the cost of fraud.