The 5000 AIR tranasaction you identify happens on this block: http://explorer.teamaircoin.org/block/9d80c5a288e4c33cb014274260bca2f32e3aee0ac81f676f286622f5898c0be0

There you can see the address that the 5000 AIR was sent from: "AeNa12D2kT33GVqTvBHVBg3wGtCdyj75ic". This is a deposit address for Poloniex, where we have deposited the premine for use in the market making algorithm. Only deposits should be made to this address, our team has not withdrawn any of it. This reduction of 5000 is, shockingly, not reflected in our balance on Poloniex. It is possible that Poloniex may break up large sums into "chunks" of 5000 AIR at a time for their internal recordkeeping.

This means that the transaction must be a move from one poloniex wallet to another poloniex wallet, both of which are tied to our main account. If we withdrew all coins from poloniex, it would likely send that 5000, along with all of the other coins, back to our original wallet. We will be doing a withdraw soon, along with a second check over our premine storage wallets, to confirm all of this.

All of the AIRcoin deposited on Poloniex, with amounts to 15587.74473327 AIR actively trading, plus 84999 ready to be withdrawn, accounting for the entire 100000 AIR devoted to Poloniex, plus the ~500 AIR that remains purchased from the market. The premine remains intact and unsold. Any sell orders that have occurred on Poloniex have NOT been the result of our trading account there.

We are checking our wallet network and making sure that none of them were deposited into a Poloniex account either. We will update the thread as soon as we have confirmation that all coins remains where they are supposed to be.

EDIT: Additionally, It may be bounties paid for work (such as media or the block explorer) that were only recently deposited and came from the original premine.

For clarification, the first 72 hours, the notice before the verification period, hasn't started yet and won't until the next coin's code is ready.


This is correct. We won't start the 72 hour period until at least after the "Beta" wallet is released. 

To clarify: Yes, the coins will be 1:1 at the amounts when verified in that 72 hour window.

However, this is explicitly not a transfer of funds. We are not accepting any of the old AIRcoin (AIRcoin beta) and you are free to continue using them, we are just using the support that others have (from their existing stores of AIRcoin) to distribute the new blockchain. The team is not moving coins from one location to another, they are just distributing new ones, and the old coin code still exists.

The timeline stated in the previous post will start (0HR) when the new coin's code is ready to be released and it is set up for exchange.

We have made a decision on exactly how to proceed with improving the coin's code. What we will be doing is marking the currently traded coin as "AIRcoin Beta", and will make a wallet update with KGW fixes and new documentation to reflect that. It will still be supported for the time being, and it will be managed on Poloniex.

Next, we will prepare a code for the full version of AIRcoin, including the variable block reward and improved investment system. Before it is released however, we will announce (with 72 hours in advance) a 72 hour verification period where users of the coin will be able to verify their wallet addresses (and the amount of AIRcoin beta inside them), after which we will have a giveaway for the new blockchain based on the amount within the wallets during verification. This gives users plenty of time to buy or sell AIRcoin in advance of this news.

The new blockchain will have very similar stats to the old one, except with a premine increased to include the coins given away for the new releaseThe next difficulty adjustment algorithm will be our own variation on the Dark Gravity Well, with further improvements over KGW.

One change that has occurred this week, however: We have chosen Scrypt-N over X11, in part due to complications with implementing X11, and concerns over its ease of access for new users. The next coin will have a number of new features, and a full update list will come out before the verification period.

So the timeline will be:

0HR: Notice of new coin
72HR: Verification period begins
144HR: Verification Period Ends
- HR: Coin released

Mintpal has requested that AIRcoin be added to their exchange, and we will add AIRcoin to Mintpal after the next release, and we are currently working with a new, well-funded and professional exchange that will be arriving soon.

We are still answering questions via email (if you don't get a response within 48 hours, try either the contact form on the website, alexander's email (Alexander@teamaircoin.org) or the support email (support@teamaircoin.org). And we are still watching the threads, but as normal, we will update the threads with new information but still ask for users to either send private messages to this account or emails for direct questions. We've found that emails are a much better way of answering direct questions about the coin, as well as keeping the team focused on the task at hand.

This is just a step of evolution towards AIRcoin, and the support you guys have shown has really helped us learn and improve as time goes on. Those who remarked early that AIRcoin was a "long term coin" are very correct. We're all hoping that we can move forward as we try to improve the system and bring it to real world merchants.

Addendum:

The coins will be 1:1 at the amounts when verified in that 72 hour window.

However, this is explicitly not a transfer of funds. We are not accepting any of the old AIRcoin (AIRcoin beta) and you are free to continue using them, we are just using the support that others have (from their existing stores of AIRcoin) to distribute the new blockchain. The team is not moving coins from one location to another, they are just distributing new ones, and the old coin code still exists.

The timeline stated in the previous post will start (0HR) when the new coin's code is ready to be released and it is set up for exchange.

I want to reiterate this important point:


The development team is still working around the clock on this coin.

We have not sold ANY of the premine. The investment pool is actually about 3800 AIR over the 2,500,000 premine amount.

We been designing a new investment system along with changes to coins code that should put us in a more cutting-edge position in the market.

If holding AIRcoin puts you at risk, or in a financially dangerous position for the next 2 weeks, then we wouldn't recommend that you continue trading it if you think you are going to lose BTC. However, if you still support the coin, it is in your best interest to hold whatever AIRcoin you still have while we're working on the next investment system.

Our #1 primary goal right now is to go completely public and seek real world usage and media attention for the coin once we've finished the series of renovations to the investment system and the coin's code.

From here on, our primary means of contact will be emails either through our website or via alexander@teamaircoin.org or support@teamaircoin.org. We will not support the Bitcointalk thread or update it until we are finished with the next stage that we're working on.

In the last two days, we have seriously reviewed our internal structure and how we manage ourselves, the coin, and the community, and we've decided to regroup and reorganize to focus on real-world media, endorsement, and infrastructure. The coin is only a week old on an exchange. It is a living financial experiment, that is under improvement, and those who purchased AIRcoin should know this, and our theory is applicable and works well, but requires an environment that we need to properly build from the ground up, beyond the very small environment offered by just the existing market. It is now our duty to do whatever is necessary to change the system or the environment, so that it works long-term.

This means, clearly, we are seeking a larger real world audience, changing our policies on privacy, making more connections with real world business to accept AIRcoin, and whatever else is necessary to create an ideal economic environment for a large volume exchange. We have not abandoned this coin, nor have we planned on doing so. We intend on making AIRcoin both stronger in code, system, economics, and usage in the real world.

The investment pool and trading system and how we managed was an experiment, one that has proven to be unsustainable in these particular conditions. We have as of, 12 hours ago, the last form of market support was concluded, and it is now a completely free market just like any other cryptocoin with no direct involvement from our system. The price currently is almost entirely dictated by the prices that miners are able to sell at to sustain their profit currently.

Our intention is not to pump the price or to directly declare a price to hold, that was never the intent or the plan, it was to provide slowly moving, up or down, rates, that acceptable support. The intent was to always make a self-sustaining system that did not require direct manipulation or purchasing of the coins from the developers themselves. The entire amount of trading value, right now, is split into ~10% BTC and 90% AIRcoin that was purchased from the market to keep the price up. That BTC will remain on Poloniex and is not withdrawn, is not being used to pay the developers, and following the trend of the transparency release, we have used almost the entire investment pool to purchase AIRcoin, not to pay ourselves.

We have postponed DGW and the wallet update indefinitely. As a result of attempting to rush the development, we ran into numerous syncing bugs from the change to DGW and other tweaks into the code. This is the primary reason for the lack of communication: worry that we would not be able to solve the syncing issue in time. It wasn't up to our standards as compiled and it would have been a disservice to release it prematurely.

We're currently looking carefully x11, however it is still relatively new, and most of the problems it solves can also be solved on the market side, so it is definitely a long term option, but we are going to realistically compare it with Scrypt-N, Scrypt-Jane, or, other algorithms that have benefit to the use of their computing power beyond mining.

At all times, we reserve the right to keep our personal information protected, especially given the anonymous nature of online forums and the cryptocurrency community for our protection, that is why we have chosen to incorporate.

If you have purchased AIRcoin, knowing that this is a long-term investment, it is in your best interest to hold it. If your investment puts you at financial risk, and you are unable to have enough faith in our team to pull through and make results, then you are not invested in the project or the team, but in short-term profit, and there are many other coins for the purpose.

Because our team is going to focus its energy toward real world application, we will leave this thread for discussion, and will respond when necessary, but for direct questions and concerns, we will primarily work via email or through our website. Supporters are always welcome to discuss our plans and decisions personally with us as we develop them.

 - Alexander


EDIT:

To make sure our point is clear: this coin is not dead. We are still actively working full time on it, and it has only been in the market for one week. We are changing our objectives and methods, but that does not mean, in any way, that we are abandoning the coin. For a brief period, it will not be supported by our system, but that does not mean we are not going to implement a new system or that we have abandoned the investment system in any way.

It's surprising and amusing that this is the most important thing you pulled from the post. No offense intended, that is. But yes, we are looking to ways to adding it to the existing AIRcoin wallet code, making AIRcoin the third cryptocurrency to use it. It is, hands down, the most cutting edge hashing system out there.

1. The New Incoming Wallet

The first big news is of the new wallet. Because of what is about to be revealed in this post, and how important it is for the future of AIRcoin, we are going to hold off the new wallet for at least a few more hours, and release it in the morning. The last thing we want is for any bugfixing or issues to arise, because we expect a rush of new downloads after this news gets out.

But, the wallet we have to release currently has the following:

Dark Gravity Wave: Our team actually had a test version that implemented Digishield too, but we decided that Dark Gravity Wave was the better choice for difficulty adjustment after doing some testing. This makes AIRcoin only one of a few wallets that has this cutting-edge adjustment software. With this and our own tweaks, we should be completely safe from the timewarp exploit as well as changing hashrates.

The block reward will be reduced, as well as diminishing at 1% every day. This will continue until the new adjustable exchange-rate based blockreward is implemented. This is simply a manual attempt at adjusting the block reward according to the exchange rate.

We have a significant number of checkpoints and added security to the blockchain.

In development for the future:

X-11 hashing:  Yes, that is correct. We are attempting to add additional algorithms, eventually working up to full X-11. This is no easy task, and would make AIRcoin one of a very exclusive group of coins to utilize it, but our team is finding a way to make it possible.
Exchange Rate Controlled Block Reward – the counterpart to the investment pool, this is the last key to economic sustainability. However, as we’ve explained, for the system we’ve worked on to be secure it requires large exchange volume and multiple redundant exchanges. But if our plans to expand to MintPal are successful, then this is the next innovation we will bring to AIRcoin.

New GUI, including installation instructions, easy adjustment of the config file, tutorials, and possibly a peer-to-peer news feed built into the wallet. There are so many more innovations we have yet to even begin implementing that we have experimented with. While inflation control, ASIC protection and secure hashing is higher on our priority list, we intend to make it the absolute easiest wallet to download and use for those who are not used to Cryptocurrency.

2. AIRcoin Identity, Legal Status, and Real-World Connections

Now, the following announcement is going to change the face of AIRcoin forever. This is, much anticipated, accountability from our team:

AIRcoin is a corporation within the United States, closely associated with the University of Chicago and Booth Business School. We are not a group of amateur programmers. We are not hobbyists. We are growing a business to be both our lifeblood and to take the first step to legitimizing cryptocurrency as a technology, with full corporate status. From a legal perspective, that is our identity and it is just as accountable as a human being under all aspects of the law, and we see this as the only way to properly develop a cryptocoin for financial use.

We are incorporated in the USA, as well as licensed to operate in Illinois, and based out of Chicago. In terms of accountability, it doesn’t get much clearer than that. AIRcoin is a legal entity that falls under US law, operating as a corporation, with the full intention to operate legally and adapt and influence all laws and regulations that come out. We are doing this as seriously as is possible.

This makes AIRcoin the only Cryptocurrency with the full legal accountability of a development team acting under a corporation. We are not a not-for-profit, we are a business developing a service and a technology to the best of our abilities.

Our team members and backers are very closely associated with University of Chicago and the Booth School of Business, and AIRcoin started as an experiment. The University of Chicago is the #1 Economics school in the United States, possibly the world, and a consistent top-5 college, known for being a thinktank of economic innovation and the origin of the “Chicago School” of economics. The Booth Business School (formerly the University Of Chicago Graduate School Of Business) is one of the top 5 business schools in the nation as well. We are very well connected both academically and financially. Where we expand from here was never a question of making small improvements, but testing our concepts before making headlines. In other words, Team AIRcoin is much, much larger and better connected than we originally made ourselves appear.

It was always our intent to reveal our location, business, and connections eventually. However, we kept anonymity because it was of the utmost importance that the coin could be tested in a FREE MARKET without HYPE. We need to see if the investment pool would work, and it does, before we could expand. The point is: our system can generate a revenue and, with enough volume, have a self-sustaining cryptocurrency backed by a legitimate corporation.

We do not want the coin to succeed or fail based on the reputation of our backers, but on our own innovations. And, from our perspective, as a trial period the first week of testing, AIRcoin taught us significant things that will allow us to completely change the face of Altcoins from here on out. This is why we were so careful about the hype behind the coin, why we kept a minor social media presence, and why we have tried to see how far the coin can go on just its own merits, not the name of its creators, before revealing ourselves.

Many, many other coin developers remain completely anonymous, so we assumed for at least the first few weeks, we could do so as well to get as much data as possible. We believe we know enough about these markets now to make the necessary changes and innovations in order to begin our campaign in earnest.  

We have chosen to explain our position now because we’ve come to realize that the community has serious concerns of the anonymity of the developers of this coin, and their accountability. We are a company. We are legally accountable, and we would prefer if we are held accountable, that protects ourselves and our users. We are in this for the long term, which means we intend to comply with and influence any US regulation and law regarding crypto currencies. We know regulation is happening soon, it is our intent to be not one of the better coins, but the best coin that can survive it. This is only possible because of our knowledge and connections, but it was important that we tested the market on an even playing field, where we didn’t have any advantages (and several disadvantages) over other coin developers. We have so far delivered a very capable product and exceeded almost all of our projections. I want to reiterate, this is only the beginning of a major movement that is starting, and we want AIRcoin at the front of it. It’s a long term game, and AIRcoin is the first coin that arose from these incredible backgrounds.

To prove our claims, here is a picture taken today. On March 21st, 2014, the University of Chicago had their Convocation for the Winter Quarter Class of 2014. Alexander was on campus during this event and took these photos after it was over. The first shows Rockefeller Chapel, along with the leaving group of graduates. The second photo shows the Booth School of Business. We will add further verification from the future to match our claims.


http://i59.tinypic.com/330664i.jpg


http://i57.tinypic.com/dnbjsy.jpg

Now, I want to expand on our background and claims: we have past experience and connections with:

1. Multiple financial institutions, including Investment Banks, Capital Management, and Venture Capital.
2. Angel Investors and Alumni support.
3. University of Chicago Economics Department and Booth School of Business

When we say we have the power to change how Altcoins are accepted in the United States, we are not exaggerating.


3. How AIRcoin will work in the Financial World

So now comes the real question: What does that really make AIRcoin, then? Put simply, it’s the first Cryptocoin that can be accepted, completely, under full legal tolerance of the law of the United States of America, with clear accountability and a legitimate hope of seeing large scale adoption.

AIRcoin is backed by a trading algorithm that works, and works very well. It’s the most successful aspect of our coin. We are the ONLY coin that has an algorithmic trading system to support the price. This is proprietary software and the key to our success. This is why our oversight about the inflation rates caused such a dramatic effect (by comparison) to the market: it caused the algorithms to operate inefficiently.

But more importantly, AIRcoin is the solution to the problems that the Financial World sees in Bitcoin, but go overlooked by Bitcoin’s own developers.

The number one problem with cryptocoins is a lack of sustainability. Forks, inflation, heavy mining, instability, and similar problems all make it impossible to be used as a legitimate financial instrument. However, its decentralization, ability for quick and secure transactions, and numerous other advantages means it is too precious of a technology to go to waste. AIRcoin is the first step to shake off the pretensions and aim for the impossible: a Cryptocurrency that will not be rebuked by the mainstream world. We may be only a few weeks into its development, but we’ve already demonstrated some cutting edge understanding of the market.

But we aren’t looking at time scale of 1-2 weeks, we are looking at currencies LONG term, months or years, and there is no problem, including government regulation, our team cannot solve if we are given adequate time and energy toward solving it. Considering how far we’ve come in just a few weeks, in 3 months, it is not unreasonable to believe we will be one of the largest cryptocoins in the market. We want to take Our Cryptocurrency to the doorstep of Investment Banks. AIRcoin’s future is not with individual who would use worthless coins for making jokes, but instead aim toward major multinational businesses. Building a system that is stable and inspires the faith of a coin beyond just ours. For this first week, it’s been a game of playing fair and quiet with other cryptocoins, learning within the community, months living and breathing the life of the universe you have created here online, so that we can understand exactly what cryptocurrency is, and can become.


4. An Altcoin Alliance

This allows us to get into clarifation by the term “Collaborate”. AIRcoin is not moving on to another project, and we are not asking developers for help. We have been drafting the start of an Altcoin Alliance.

The Collaboration between AIRcoin and other developers is another method to bring accountability to the Altcoin community. Namely, through two mechanisms:

1. An inclusion in an Altcoin Index Investment, an index investment system which includes the most sustainable, effective, innovative, and aspiring coins, as way to attract low-risk investment. It’s honestly fascinating how there hasn’t been a successful index fund of Altcoins already.

2. At the core of this is a Cryptocurrency Code of Conduct, which outlines how coin developers should pursue real innovation, real world needs, and real sustainability, legal recourse and outlines what sort of economic problems, such as inflation, cause coins to die completely, so that developers can work to combat those forces.

We intend to move VERY QUICKLY on this endeavor, as its progress will ultimately be the deciding factor for the survivability of Altcoins in the future. This Alliance, brought to power over the next 3-6 months, will give a strong, organized, powerful voice to the coins that have real innovation and needs, and allow us to shut out those that are scams and failures. Coins that show no innovation, no plans for sustainability, or do not see the very important need to fight for the survival of Cryptocurrency will not be a part of this. We believe that Bitcoin is, in its current state, economically unsustainable, and it has been said many times that its code is significantly further behind than some Altcoins, however, it’s massive size and early-comer basis has made it the de-facto standard. If it remains the standard in this very diverse market, then regulation about this technology will be hard, swift, and blanketing. But if there is a strong, vocal, organized force that can provide a real good through a consortium of development and innovation, we not only stand a fighting chance at preventing outright banning, but rising to the challenge of ubiquitous usage. The power is here, there are so many innovative altcoins, but so few of them understand the importance of economic stability, or even attempt to achieve it. Our greatest fears, as both businessmen and academics, is that world progress in financial markets will be set behind by decades simply because the masses did not have the foresight to look beyond innovation and see the ultimate potential, because of their need for a quick dollar.

AIRcoin, and the associated AIRcoin Investment System, was a fresh, new, and untested concept. But more importantly, it is one that ultimately does fulfill what it was required to do. It was never a problem with the theory. Looking back and removing all emotion from the moment, our coin has been relatively stable. Pumps and dumps have been responded to very quickly. This is still just the beginning, and with the reveal of our position, the power we have, we can now begin innovating in earnest. The system has been made, it was tested, with some hiccups and susinstability problems, but unlike other developers who would dump and leave this coin until it hit .00000001 BTC/AIR, we are going to fight and do EVERYTHING possible to make the system work. That means adjusting parameters manually (such as the diminishing block reward) and improving our systems. We have a lot of big plans, and they are too good and too important for us to give up simply because of a few days of heightened inflation. I repeat, this is just the beginning of AIRcoin, it has just learned how to walk, and now it’s time to teach it to fight.


5. Other Concerns

Now, to address some more specific concerns:

A question that has been asked many times before is “Why didn’t we just pump tons of BTC into the market?” If you understand Chicago economics, you understand why: The entire point of this coin is to be a SELF SUSTAINING free market, not to be a liability on its supporters. We know that supporting the market, beyond the sustainability systems, with our own capital, would be a short term fix and a waste our resources that could go toward better infrastructure. If we directly manipulate the market to keep the price up, rather than relying on the system we created or adjusting it, it would be both unethical and unsustainable. The users of our coin are under much more liability if they have to rely on us to put funds that should go to company infrastructure into the market directly to combat inflation.

That being said, we were successful with our proprietary trading program behind the investment pool. We pumped .5 BTC per day into the market and generated ~30% more volume than otherwise. Consider that for a second. 20 BTC of volume per day, and our system created .5 BTC of buying support alone through high frequency trading.  If we get the volume of this coin up, as long as it stays high it could not only keep the price stable, but give it consistent rises according to the growth of that pool. We have created the first system of generating funds that doesn't require absolute sale of the premine. For coins with philanthropic goals or ones that have costs they need to cover on a daily basis, this is the secret to all of their problems, and the licensing and adoption of this system, as it improves, can change things forever.

The only thing preventing that, and is currently preventing that in a large way, is the extreme inflation that caused a dip in volume, rather than a rise in volume, that prevented us from keeping the price up. However, it fell slowly and stably, allowing users to continue trading in and out without significant loss: consider that our system still made money even in the downturn market. Our main goal outlined in the whitepaper. In terms of what we set out to do: Start at .00115, maintain a tight spread, be easy to invest and sell, and generate support. We actually far exceeded our initial exchange rate, maintained a high exchange rate for a long time, closed the spread, and generated good support. It wasn’t until the snowball effect began to overtake the investment pool that our equilibrium failed. But this is why we did not allow significant hype: we wanted to know how the market would react to the ideas we presented and how we can best benefit the community through our systems.

Our next point of improvement is in our Social media presence.

Our energy was focused on a theory, innovation, and development of the trading system, but our developments outgrew the social media presence we had before expanding it. It was never our intent for this coin to go viral or to be a sensation. We wanted to keep it quiet and closed-tested. We wanted to see if we could let it fly with stability on its own. Now, we’ve got enough data and enough support to make it big, as big as possible. We hope that the release of exactly who and what we are, and what we are capable of, will be enough to start a wildfire of support.

Even if you don’t buy AIRcoin, even if you hate Chicago Economics, even if you detest corporations, if you have even a shred of hope that cryptocurrency can be adopted in the real world, if you have any hope that the innovations in Altcoins are for something more than pump and dump schemes, then you can at least support our sentiment and ideas.

We make the future. Every one of our decisions creates the future ahead of us, how we treat our coins decides how the government will treat them. How we treat each other now determines how we will support one another in the future. How quickly we adapt and innovate determines how powerful we can be. Making short-term money in a week is nothing toward building a business that can change how finance is done, by people who have the power to make it a reality.

These ideas and dreams that most altcoins talk about, freedom, prosperity, and sustainability: these are just ideas. They need to organize, they need to collaborate, and they need to improve in a way that turns those ideas into reality. That’s what we’re trying to do. A few bad days cannot, and will not, stop us from doing that.

The best thing that anyone can do for AIRcoin right now is to relay what we have just said. It is big enough, it is important enough. Twitter, Facebook, Reddit, anywhere on the internet where you can explain just how this big news impact Cryptocurrency, do it. We have a voting campaing for Mintpal here: and our twitter is here:

This is just the beginning of something very, very big.

Please, if you have any questions, either post them here, and we will try to address them promptly and plainly.

We are working on an announcement. This is what we are going to make statements on:

1. Collaboration with other coins
2. AIRcoin business, location, and background
3. The new wallet
4. The plan for the next 4 weeks.

Give us a few hours to get everything put together. This is the biggest announcement our team has made and we want to do it very precisely and correctly to make sure that no one misinterprets it.

We have started an AIRcoin Thunderclap to raise awareness of the coin. It will go on for the next 24 hours, and if it reaches 100 supporters, should help get many people interested. We repeat, the best thing you can do for AIRcoin right now is to expand its influence, and get as many people aware of it as possible!

If the 24h volume of AIRcoin can get high enough that ~10 BTC can be leveraged (instead of 2 BTC right now) we should be able to counteract all of the inflation currently pushing the exchange rate down. This will mean having a 24h volume between 40 and 60 BTC/day, which is about what AIRcoin had on days 1 and 2. Once we pass that threshold, combined with the wallet update, we should be self-sustaining and have no further inflation.

Additionally, the AIRcoin team has begun to collaborate with development teams of other coins to bring the investment system to other innovative Altcoins, particularly ones that use the money they generate to fund scientific, philanthrophic, or other beneficial endeavors.

We just created a thunderclap, it is currently pending.

Alexander is currently in the AIRcoin chatroom, and is discussing ways to improve the wallet update, as well as plans for rectifying the investment pool growth vs inflation issue.

We have made the decision to delay the wallet update to be more fair to Pool operators. It was sudden and rushed, so to smooth things out and be more fair, we will release the wallet late tomorrow rather than in the next few hours. This gives a guaranteed 24 hours of time between our announcement and the release for everyone to be prepared for.

The last thing we want is for pool operators to be squeezed out because of the effect of inflation.

If anyone has concerns about the new block reward, please post them so we can discuss it and improve how we update the wallet.

An index is one possibility, but high frequency trading on other altcoins is a far more lucrative one (with greater gains but far less risk) that will sustain the pool. Index investments however, serve their own important purpose in the Altcoin world. It's one of our next major advances we're experimenting with, and once AIRcoin is a bit more fine-tuned, we'll work on progress on that front.

Although that does not prevent individuals for checking on them via the block explorer, which tracks the premined transactions quite clearly.

That is normally true when there is no activity against inflation, but as you said, an increase in price would offset the reduced hashrates.

We've also noticed that despite the falling price, mining hashrates are still within 20% of their peaks on a regular basis, so demand to mine the coin is still strong. We may see a temporary drop in mining power, but it should re-correct itself at the new equilibirum.

A DECISION HAS BEEN MADE

A New Mandatory Wallet Update will be released. It will have the following:

1. A block reward of 1.96 Coins, which should give time for the exchange rate to adjust back up to stable values. This should return the mining opportunity price to .003 BTC/AIR @ 16 Difficulty.
2. A diminishing block reward that will decrease by 1% every day. This should stabilize the exchange rate's decline. This will be also be removed when there are enough reliable exchanges that the variable block reward can be implemented.
3. Adjustments to the KGW system to make it react better.
4. New Checkpoints and other minor tweaks.

This wallet will be finished by the end of today and then released late tomorrow, with the changes occurring soon in the block chain. This means we need ALL POOL OPERATORS TO BE READY FOR THE NEW WALLET. We are sorry for the abruptness of the release, but we feel it is necessary to maintain a sustainable exchange rate.

The reason these values were chosen is based off the performance of the investment pool in the last week. It should now be able to grow at a sufficient rate to counteract the supply/demand differential and inflation.

The decreasing block reward is insurance in the event that the exchange rate does start to fall again, in that it should curb that fall long enough to get on at least 1 other exchange so we have redundancy in the system for the variable block reward.

We will update with an explicit time that the new wallet will be released, along with the block # that the new reward will begin. Expect the wallet release to occur within 12 hours.

If it's any consolation, that gives you ~24-36 hours before the exchange rate will begin rising during which you can stockpile AIR at a cheaper price.

(post edited to reflect change in release time, to give people adequate time to prepare)

As explained in the previous post, this is exactly what is happening:

1. The inflation rate is steady, at ~2700 AIR per day
2. The Pool growth is steady. ~-300 AIR per day
3. The Demand is moving. (new users, currently not a large factor)
4. The supply is moving. (dumping, which is a large factor)

The inflation rate and the pool growth rate should bring the demand and supply in equilibrium to keep the exchange rate flat, plus a little to raise it slowly. However, they, which are supposed to respond to supply and demand, are instead very very out of balance (.5 BTC per day VS 5 BTC per day). This is because the pool cannot grow fast enough (exchange volume is too small) and the block reward does not change because we cannot implement the variable block reward on only one exchange (or we would risk, much worse, instability in the code).

The team is deciding exactly how to combat this, and it will either involve adjustments to the block reward or expenditure toward affecting the other 2 factors in the system. The first solution would come along with KGW adjustments to address concerns with the pulsating difficulty. Both of these are an attempt to provide a more realistic equilibrium, given that the current reward was chosen based on estimates from 3 weeks ago before the coin had launched.

In those estimates, we assumed a larger exchange volume, a lower rate of selling by miners, and a higher amount of new users and initial demand. The other solutions will involve capital spent (out-of-pocket, not the premine, as that would crash the market) on coding, media and exchanges to implement long-term solutions that raise the 24h volume and allow us to eventually implement the variable block reward. If we bought coins, that would be a short-term and very silly way, since, in one way, the equation is currently out of balance. Dumping BTC or AIR on either side does not make it self-sustaining.

It is not really a matter of panic or instability, if we did not have the investment pool at all, the price and volume would be much lower (~.001 and 10 BTC/day) and far more volatile. But a matter of underestimated rates. These last two days have given us enough data to experiment with to know, definitively, what economic forces are in play. As of today, we completely understand the problem and it's just a matter of deciding how to use our resources to reverse the trend, as explained before, there are quite a few options.

We are still deciding exactly what to do, and new options may present themselves, but those are the most viable solutions currently. Expect a definitive answer soon.

If you are worried about losing BTC, I will repeat looking toward the investment pool, which is growing despite the downturn in the market, as a demonstration on how to make profit in a downturn market.

You can read the paper here: Transparency Release.

While it may go overlooked, before blaming us, you should read the transparency release that we just made. It should explain the entire system in full with explicit data behind it. The dump was not us. As the release states, we were (and still are) AIR positive, meaning that the system has bought more AIRcoins than it has sold.

It is very apparent that two things are happening:

1. Sellers are acting non-optimally (not getting their full amount of money) out of an important need to sell our coin, and are not aware of their actions.
2. Sellers are deliberately attempting to lower the price.

As the dump was timed both with our Transparency Release (something that would, normally, encourage individuals to buy) and with the listing on Coinmarketcap, number 2 seems to be a more and more likely scenario. At the end, though, this is economic warfare. If individuals are not benevolently testing us, then it means that someone doesn't agree with the idealogy of our coin, and is definitely willing to pay time, energy, and BTC in order to see it fail. When it comes to economic warfare, we understand the terms of engagement considerably, and right now we are fighting a long campaign with a few new technologies not held in the cryptocurrency world.

2 things will solve this problem immediately. One is a higher volume, the other is a higher investment pool. That dump increased the value of the investment pool, at current prices, by .1 BTC. I want to stress that: whomever dumped the coin just now missed out on .1 BTC worth of value, that is now in the investment pool. We made 0.1 BTC instantly from your dump. If our listing on coinmarketcap.com causes a price increase, then we will have made even more from the dump.

When coins are sold in mass volume, the low prices they reach increases the value of the investment pool. In other words, people's dumping gives us more BTC to support the coin with long term. The system is still young and has to grow,

You should not expect the exchange rate to constantly rise, and definitely not expect it to rise until the equilibrium we have explained (both in the release and previous posts) has been reached. That doesn't mean it won't, but if we assured everyone that the rate would rise when these factors were not in equilibrium we would be in a violation of conduct against our own ideology. We want users of AIRcoin to be economically savvy and effective, not followers of blind faith. You can not only still make money in a downward market (again, consider that the pool has made over 2 BTC already since launch) but you can definitely promote the coin to other venues by spreading the word about it and generating the large volume that will be able to help sustain these dumps.

We've addressed the issue now, and thank you very much for bringing it to our attention.

We do have methods to prevent them from continuing to trade AIRcoin, but we would prefer if they respect our wishes and remove the currency from their exchange entirely.

For now, we ask that ALL users refrain from making any deposits into Coinpeat. It is not an exchange we support, and does not have the faith of the development team behind it. Be warned that any deposit you make can be stolen, there is no certainty of the website's reliability, and AIRcoin will not be offering any market services to the exchange, making it very difficult to trade on. There is no reason to take the risk, and many reasons not to. We currently have a thriving, successful exchange at Poloniex: https://poloniex.com/exchange/btc_air

You have listed AIRcoin on your exchange, without contacting the development team and without our consent. While AIRcoin is an open-source peer-to-peer software, and you are not under license restrictions to not put it on your exchange, doing so without the knowledge of how AIRcoin works is a very bad mistake to make. AIRcoin uses market services to support the exchange rate, and these services are based around trading algorithms. These algorithms work only on liquid exchanges with successful APIs, and they allow the market to move at a fast rate. Without being a longstanding, reputable exchange and without a strong API or assurance of consistency in uptime, we cannot support AIRcoin on your exchange. It is not possible for us to do so, even if we wanted to.

We ask that you remove the AIR market from your exchange. We will not trade on, support, or recommend your market if you continue to host it, and given the very heavy market-service oriented nature of AIRcoin, this would only result in a lockout with 0 volume for an exchange that doesn't respect the wishes of the development team.

Since AIRcoin uses proprietary high-frequency trading, market making services, and necessitates an extremely good exchange API, being able to trust and have faith and security within the exchanges that trade AIRcoin is paramount to its success as a currency. For now, we can not support AIRcoin being traded on an exchange that we do not have our full faith in, especially if the exchange has added it against our wishes and without contacting the development team.

This is not asked to harm your exchange, but to protect the users of AIRcoin from potential damage and to be able to maintain its service. As no one has put a sell or buy order on the AIRcoin market on your exchange, it should be clear that without the support of the development team, you will not be able to carry AIRcoin successfully.

However, as the exchange grows, matures, and can be trusted to be reliable and professional, we can certainly consider the possibility of adding AIRcoin to Coinpeat. But for now, we ask that you remove it entirely, preferably freezing trading first and then giving a notice to allow users to withdraw any AIRcoin they have deposited into the exchange. Please respond quickly to confirm this message so we can continue.

For now, we ask users to not make any AIRcoin deposits into this exchange, and to use Poloniex, a comparably more well-established exchange that is trading successfully at high volume. You can find the exchange here: https://poloniex.com/exchange/btc_air And remind users to be very careful about what exchanges they deposit into, especially for a coin like AIRcoin, where an exchange's reputation is important to the strength of the coin.

- Alexander, Head developer of AIRcoin