The thing I don't get about the coin and maybe someone can explain it to me is the incredible hyper-inflation this coin has built into it.
It's going to go from 12 million coins to 1.2 billions coins over 15 years. Am I understanding that correctly? Through staking.
That just seems like dooming the coin to 1 satoshi right there. There's no way it can hold its value. It's gonna make doge look like gold by comparison.
You got it right. When I raised the issue over at HT with the pre-mining of 12,000,000 out of the 12,500,000 Paycoins in the PoW stage, most of the True Believers countered that 12,000,000 is peanuts compared the the 1.2 Billion Paycoins that will be issued, so by their logic the "pre-mining" is a big yawn.
The argument is kind of like saying "Don't worry about the $17 trillion dollar national debt, we are going to print 100,000 trillion new dollars to pay it so it won't matter one bit."
The reason I dont worry about 12 million premine is because you should have expected it. They are running this closer to an IPO meaning most coins early on will be from people who paid for their coins. This will help protect the investors in this case. You want people that had to pay for the coins to be major holders because they are less likely to dump for a loss early on. Miners on the other hand dump to cover their cost of mining. So with this part I see no problem. As long as all the coins go to their respective investor. Now of course you have to believe GAW a lot on this. You have to believe these coins were actually bought by outside investors and that they are not just split into a bunch of GAW addresses where they are going to sell them off before HP customers get theirs.