Quote from: Level Coin on January 19, 2014, 07:31:37 AM

Hello Bitcointalk!

My name is David Elsinger and today I would like to present a new Proof of Stake/Proof of Burn cryptocurrency that is currently in development named Levelcoin. Why Levelcoin? The reason is because the coin is divided into two levels. Let me explain.

Level 1 (LV1) coins are the name of the currency that will be distributed via the pre launch fundraiser. These are the coins that will be on exchanges and can be bought and sold. These coins will generate four additional LV1 coin per week for every 1,000 LV1 coins that you own (updates fractionally on the blockchain every 15 seconds and are rounded up to the nearest millionth). This means that in one year of holding 1,000 LV1 coins, you will receive roughly 200 LV1 coins, or 20% per annum. Doesn't seem like much? Keep reading.

Level 2 (LV2) coins can only be obtained by burning Level 1 coins. For every 1,000 LV1 coins that are burned you will receive one LV2 coin. These coins can not be exchanged, sold, or discarded by any means and will be attached to the wallet indefinitely. Each LV2 coin will generate twenty LV1 coins per week. In one year of holding one single LV2 coin, you will receive roughly 1,000 LV1 coins. This equates to achieving a 100% ROI within a year. Much better isn't it?

All coins have diminishing returns.This is to punish hoarding. After the ROI is met, coins will generate 1% less Level 1 coins per month. This is multiplicative and not additive, so reaching a point where a coin stops generating is unlikely anytime in the near future. This is a good thing and will keep both the exchanges and the amount being burned higher than it would be without diminishing returns.

This cycle is revolutionary in the sense that someone holding LV2 coins will generate coins at a fast rate and cause inflation, yet to get LV2 coins they would need to burn LV1 coins and that would cause deflation. In every case of inflation, there is a stronger deflation to counteract it. This may very well be the first currency, both fiat and crypto, that has a built in mechanism to eliminate inflation on a very large scale. The cherry on top is that this deflation is instant, whereas inflation is dragged out over a long period of time. Let me give you an example:

Assuming a constant demand, a typical Proof of Work or Proof of Stake coin will lose a vast amount of value as the supply of coins on the market increases. A Proof of Burn coin on it's own will forever be attached to a Proof of Work or Proof of Stake coin and by association will also lose value over time, again noting that this assumes a constant demand. Levelcoin on the other hand has evolved to use a combination of the best features of Proof of Stake and Proof of Burn. This has lead to a system that is highly resistant to inflation and may in fact have the opposite effect. Assuming a constant demand, the value of Levelcoin will likely increase as more and more people burn their LV1 coins, causing supply to dwindle.

Nothing like this has been tried before and should the system work as planned, any founder will see an enormous return on investment. There is very little incentive for users to "pump and dump" or to flip in and out. This coin caters more towards loyalists, and considering that there will not be botnets nor ASCI's to deal with, everyone will have an equal opportunity to take part. The system is built around simplicity. Have you noticed how all new self proclaimed "next generation" currencies are getting more and more complex, both in their algorithm and distribution methods? There is no need for that, and Levelcoin aims to prove that. Google had the right idea by creating a simple search engine, and look where that got them!

Those who have faith in the currency and are in it for the long haul will reap enormous benefits from burning their LV1 coins to obtain LV2 coins and then selling the LV1 coins obtained via interest on an exchange that will likely be proprietary. Or they could choose to burn those new coins and compound their interest while at the same time creating scarcity for LV1 coins. The choice is yours. There will always be demand due to the fact that LV2 coins can not be obtained in any way other than by the purchase and burning of LV1 coins.

As a disclaimer, I will not be holding any of this currency so there will be absolutely zero dilution. My funding will be entirely based on pre launch fundraiser. Currently I am in the coding phase, there are still some kinks to work out and I have to apply every scenario possible to ensure that this system is not exploited in any way, though from what I have tested thus far it seems highly unlikely.

The success of this coin lies entirely on its initial demand, that's where I need your help. I had initially thought of using Kickstarter to fund this project but decided to go this route as it seems to be sufficient. I will be accepting BTC and LTC for the pre launch with a time frame of approximately half a month after which absolutely no additional coins will be distributed, though I reserve the right to cancel the pre-sale at any moment should I feel too many LV1 coins will be sent out.

If you are interested in purchasing LV1 coins at 100,000 LV1 coins per BTC or 2,850 LV1 coins per LTC, then please send the allotted amount to the below address and please PM me both your sending address and the TxID along with an e-mail address that I can use to contact you. All purchases will be kept 100% confidential.

Direct funding is currently set to end in TWO DAYS. Limited time offer to receive 1.5x the amount of coins!
Funding will also include access to the closed beta which will last two weeks.

Pre-Launch funding addresses:
BTC- 1Padc5wujXQamfR8r2Dig45BFh7SiT2AE4
LTC- LPn7WpdnZ3MSdDajbFMsJuVi44BeYEauKG

These funds will be used in a variety of ways. The most obvious would be to help fund development. As you can see, I do not have a coin logo, website or anything shiny and glittery to show for this. I am building the wallet from the ground up and have not used source code from any other cryptocurrency. I am a coder and that is all I know how to do. At this time I need a graphic designer, a web designer,a marketing manager and someone who specializes in creating graphs and charts to illustrate how the system works. These roles will be funded via the pre launch fundraiser.

Once I have an official web site and forum I will be accepting volunteers for administrative and moderator roles. These roles will be given first and foremost to the top investors should they accept. A small portion of the funding will be set aside to purchase LV1 coins at market price should the price fall to unreasonably low levels, consider this a sort of "buyback" protection against sharp declines. And lastly of course I will retain a couple of BTC/LTC for myself because I feel I deserve it. If you plan on using any of my ideas for your own project, please feel free to leave a donation!

Thank you for your time and consideration! Please show your support in the comments below.

David Elsinger, Levelcoin Dev

Current Founders
el****sy - 1 BTC
fr****e - 1 LTC
ri*** - 0.053 BTC
gk***y - 0.5 LTC
vh*********els - 1 BTC
l*** - 1 BTC
ka****13 - 0.02 BTC
da***t - 0.1 BTC
da*****ox - 0.1 BTC
ko****s - 0.1 BTC
m*****k - 1 LTC
be***r - 0.51 BTC
al****s - 5 LTC
je******4 - 0.4 BTC
ma*******9 - 5 LTC
t*****y - 0.02 BTC
l*****s - 0.005 BTC
b******r - 0.3305 BTC
ir*********c - 0.5 BTC
co****r - 0.3 BTC
s*****n - 0.219 BTC
i****v - 0.15 BTC, 10 LTC
b*****r - 0.3 BTC
t********w - 1 BTC
l******n - 6 LTC
a*******! - 0.2 BTC
s******y - 1 BTC
d******k - 1 BTC
ob******e - 1 BTC
se********m - 7.8 LTC
h******m - 0.1 BTC
r***n - 0.3 BTC
b********3 - 1 BTC
q****r - 1 BTC
a*****d - 0.7 BTC
u***4 - 10 LTC
p**********u - 1 BTC
d*** - 1 BTC
m******e - 1 BTC
t********s - 1 BTC
f******t - 30 LTC
m****w - 1 BTC
d*****w - 0.1 BTC
y******p - 1 BTC
g*******r - 1 BTC
p********r - 0.05 BTC

any update?