Search Posts

Exchanges
FreiExchange
Blockchain explorer
CryptoID

Slimcoin is a energy-saving, fast-confirming and novel cryptocurrency. It is the first cryptocurrency using Proof of Burn for block generation and currency distribution - a distribution mechanism with interesting economic properties. Proof of Burn is combined with Proof of Work and Proof of Stake to increase security. Another highlight is the DCrypt algorithm, which is one of the most difficult algorithms to implement in an ASIC and thus suitable for CPU and GPU mining.

Slimcoin is a P2P project - it is not managed by any centralized entity or organization. There was no premine at the start. You can contribute with coding, testing, providing Slimcoin-based products & services, use it for trading of virtual or real-world goods or simply hodling it.

Current developments (as of mid-2020)

Some exciting experimental developments are currently going on:

- Important: The next Slimcoin version will be based on much more modern code (Peercoin 0.9).
- We're working on a solution for completely decentralized donation tokens. Stay tuned!
- Working on client improvements for Slimcoin 0.7. A general code refresh to follow Peercoin 0.9+ with modern Bitcoin code (including Segwit and other additions like watchonly addresses) is planned. We're also testing a hard cap for Proof-of-stake blocks so no stakers can dominate the validation process.

Download Wallet

Current versions from the project repository:

Windows 0.5.1 wallet

Specifications

Tri-Hybrid Blocks: Proof-of-Burn blocks, Proof-of-Stake blocks and Proof-of-Work blocks
PoW: Dcrypt algorithm, suitable for CPU mining, an algorithm made to be difficult to implement on an ASIC.
- Block interval: ~80 seconds (90 seconds between PoS blocks)
- Difficulty re-targets continuously
- Block Rewards:
  - Proof-of-Burn blocks: max 250 coins
  - Proof-of-Work blocks: max 50 coins
  - Proof-of-Stake blocks: 10% of the staking coins per year
- Proof of Work block rewards decrease in value as the difficulty increases
- No hard supply limit, but comparatively low inflation rate. A "250 million coins maximum" is coded into the client, but probability is extremely low this amount will be reached in the next 100 years.
- Proof of Stake minimum coin age: ~1 week
What is Proof of Burn?

Proof of burn is an energy-saving decentralized consensus mechanism that rewards long term involvement. It was proposed by Iain Stewart as early as 2012. Slimcoin is the first cryptocurrency to implement it as a block generation method and was created in May 2014 by an pseudonymous developer (he used the name slimcoin in this forum, John Smith on Github and P4Titan on Reddit).

How does Proof of Burn work?

Let's quote the original Slimcoin developer:

Quote from: slimcoin on May 17, 2014, 11:33:29 PM
Proof-of-Burn mining is different from Proof-of-Work mining. More computers and higher computational power offers no advantage over slower computers.

In short, how this is achieved is: when one burns coins, that transaction can be used to calculate burn hashes. There is also a multiplier that is multiplied to the raw burn hash to calculate the final burn hash. The greater amount of coins burnt by a user, the smaller the multiplier will be and the smaller the burn hashes will be. The smaller the burn hash is, the more likely the hash will meet the difficulty target (be accepted by the network as valid). Over time, the multiplier of a single burn transaction increases slowly, lowering the effectiveness of those burn hashes, acting like "decaying burnt coins". Per transaction, only 1 burn hashes is needed to be calculated per ~90 seconds. The reason low power can mine this is because basically almost any machine can hash a few SHA256 hashes in ~90 seconds.

In short: The more coins you destroy by burning, the higher the chances you find Proof-of-Burn blocks. It's not necessary to burn all the coins together: your "score" (probability to find a block) will also rise when you burn coins periodically.

Proof of burn is explained in detail by its original author in the Proof of Burn Wiki article.

How to burn coins?

Short explanation to start:

QT client: There is a tab in the main window with the label "Burn". Simply click on it and you will be able to burn coins.

Command line: Enter the following command:

Code:
slimcoind burncoins

With the following command you see the PoB statistics of the wallet:

Code:
slimcoind getburndata

For more details: Read the Proof of Burn minting guide!

How many coins are burnt by the Slimcoin users?

Check the balance of the burn address:

This amount is different from nEffectiveBurnCoins because it returns all coins that were burnt in some moment - also those who already have lost totally their "power".

The number is useful to calculate the real available money supply: You deduct the balance of this address from the total money supply ("moneysupply" parameter when you type "getinfo" in the debug window or with the CLI client).

Developers

After the original developer's departure, other developers have made fixes to the code and thanks to them the client is quite stable now. However, we welcome all contributions, as there still are bugs and the code should keep up to date with Bitcoin and Peercoin development.

As Slimcoin is based on the Bitcoin code, even crypto 2.0 features can be added relatively easily porting Coloured coins implementations. We're currently working on a PeerAssets port.

The magic of Proof of Burn

Proof of burn has multiple advantages over both Proof of Work and Proof of Stake and some very interesting economic implications.

Advantages over Proof of Work:
- Very low energy consumption
- No need to invest in powerful hardware
- No artificial price swings because of the "mining hardware" investment cycle or the influence of multipools
Advantages over Proof of Stake:
- No simple "rich get richer" mechanism. Proof of burn rewards entrepreneurial risk, not wealth.
- While "staking" coins can be stolen hacking the private key, burnt coins cannot be "stolen". The most an attacker can get when he hacks a wallet are the PoB rewards, but incentive for this kind of attack is low as the attacker would have to wait a long time until he gets a significant amount of coins - and the legitimate owner of the key can also transfer these coins to another address.
The economic model

Proof of Burn has at least three very interesting economic implications that can lead to a more stable price with less pump-and-dump bubbles.
- It rewards long-term investments: When you burn coins, you basically trade a short-term loss to a mid/long-term advantage. You will very probably get back your investment via the PoB reward mechanism (and probably even more), but you won't get it back immediately but after a certain amount of time. That means that the risk to make a long-term investment is rewarded by the PoB mechanism. Short term Pump and dump scenarios are obviously possible, but long-term involvement is explicitly made more profitable than in other cryptocurrencies. A high long term investor/short term investor rate should stabilize the price.
- Burnt coins are locked and can't be sold: After you burn coins, you cannot spend them anymore. So you can't sell them in a panic event and very probably there will be less sellers in a price crash. For this reason the participants in the Proof-of-burn mechanism can be seen as "backers" of the coin price, as the burnt coins are not part of the available supply.
- It is easier to burn coins when they are cheap. When price is low but fundamentals are sound, then the burn rate should be higher than in the times when coins are expensive, simply because it's cheaper to burn coins. Every coin burnt is deducted from total supply. So supply tends to be smaller, the lower the price is - and that is a excellent condition to make the price rise again. That means that PoB probably has an inherent supply-follows-demand mechanism - something very difficult to implement as a separate "supply-regulating" algorithm.
- Proof of burn can work like an integrated "futures" market: a high burn rate is a sign for optimism.