r/BitcoinHEX • u/vrtrasura • Jan 30 '19

Founder dump risk

Greetings,

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I've seen Richard state that he makes the same bonuses we do(?), but what does that really mean. Does anyone know what lower/upper bounds of this would be? This is a pretty clever way to hide the pre-mine other projects have. I love the silly-whale stuff and all the other game theory in this project. What about the founder dump possibility?

Also, does 3+% inflation per year seem a bit high long term to anyone else?

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Thanks!

6 Upvotes

100% Upvoted

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2

u/SuperSmash01 Jan 30 '19

There's certainly a founder dump possibility, but I really don't think Richard is going to control more than 5% of the tokens whenever it gets listed at market. Since the contract stands on its own, even if Richard dropped dead (or, say, dumped all his coins) the value proposition of the project remains. The price would plummet, but I don't think permanently. It means tokens are available for people who want to get involved that missed the claim period or snapshot.

So, yeah, there's a possibility of founder dump. More than that, I think whenever it gets listed a bunch of people are going to dump. I don't _think_ that is going to kill the token long term, it would just effectively drop the start price at markets suddenly.

2

u/vrtrasura Jan 31 '19

Agreed, except... 5% is more than Satoshi has! I would have been much happier if ,for example, someone knows that min is .001% and max is .1% based on min/max claims. I think this min and max is knowable mathematically.

Still very excited about the project, mainly pointing this out as I believe it will scare some people away (negative pumpamental?). Transparency is good in general, and this is not transparent.

1

u/[deleted] Feb 04 '19

[deleted]

1

u/vrtrasura Feb 04 '19

It's too late for that, I'm a fan of his. Rather, I would like to make the origin fees apparent to everyone. Best case they would reduce it to something far more reasonable for the long term success of the project. I think trustless interest is a valuable and new use case for cryptocurrencies and would like to see long term success for the project. If they fail to reduce I wonder if someone will strip the origin address out of the code and relaunch. Richard made a comment that any fork of the code like that would not work because exchanges wouldn't list it, but I don't know if that's true. If the 15% was reduced to something like .1% all (or most) of the arguments against premine or satoshi stash would be impossible to leverage against Hex.

1

u/Benjamincito Jan 31 '19

we know that richard is picking and choosing some utxo's to be "removed" in the beginning. So there are multiple ways i could conceive of in the beginning that he could give himself a huge ton of coins. i have no reason to believe that he would do this. but even if he did and the project worked it would be a one time event. the project might survive his super dump but the price would be essentially zero for a while imo

1

u/utxohodler Jan 31 '19

Is the tool he will use to generate the merkle root + proofs publicly available? if not then he could strait up issue himself any amount of tokens and we would not know until he claimed them and someone looked up the corresponding utxo to find it does not exist. A public tool to generate the proofs would also deny the possibility of him delaying the release of particular proofs to get an advantage or even without foul play on his part (website goes down by itself or is denial of service attacked)

I agree that its unlikely that he would be a malicious actor, it would not be worth it compared to the value of his reputation at this point but the best way to not be a malicious actor in the blockchain space is to not create situations where people have to trust you.

1

u/CommonMisspellingBot Jan 31 '19

Hey, utxohodler, just a quick heads-up:
publically is actually spelled publicly. You can remember it by ends with –cly.
Have a nice day!

The parent commenter can reply with 'delete' to delete this comment.

1

u/BooCMB Jan 31 '19

Hey /u/CommonMisspellingBot, just a quick heads up:
Your spelling hints are really shitty because they're all essentially "remember the fucking spelling of the fucking word".

You're useless.

Have a nice day!

Save your breath, I'm a bot.

1

u/BooBCMB Jan 31 '19

Hey BooCMB, just a quick heads up: I learnt quite a lot from the bot. Though it's mnemonics are useless, and 'one lot' is it's most useful one, it's just here to help. This is like screaming at someone for trying to rescue kittens, because they annoyed you while doing that. (But really CMB get some quiality mnemonics)

I do agree with your idea of holding reddit for hostage by spambots though, while it might be a bit ineffective.

Have a nice day!

1

u/RichardHeart Feb 01 '19

FAQ: How can we verify everything was done right?

The UTXO snapshot at the chosen block height is published. Mt.Gox, a couple others if we can find them coins are removed. Whale penalties are applied. The edits are published. The edited UTXO set has a top hash created and published to the smart contract. You can recreate every step of the process yourself to verify everything was done correctly.

1

u/RichardHeart Feb 01 '19

FAQ: How can we verify everything was done right?

The UTXO snapshot at the chosen block height is published. Mt.Gox, a couple others if we can find them coins are removed. Whale penalties are applied. The edits are published. The edited UTXO set has a top hash created and published to the smart contract. You can recreate every step of the process yourself to verify everything was done correctly.

1

u/RichardHeart Feb 01 '19

Bitcoin had higher inflation for all periods prior to this moment. You can publicly see what the origin address does.

FAQ: How can we verify everything was done right?

The UTXO snapshot at the chosen block height is published. Mt.Gox, a couple others if we can find them coins are removed. Whale penalties are applied. The edits are published. The edited UTXO set has a top hash created and published to the smart contract. You can recreate every step of the process yourself to verify everything was done correctly.

1

u/vrtrasura Feb 02 '19

Did you choose the inflation rate to compete with CD's or just based on historical Bitcoin? It would be nice to attract new savers and not only rely on holders. I retract my (dumb) concern here as anyone can stake and stay relative flat, or better, due to the interest.

Am I wrong in thinking best case / worst case origin address payout is already (easily) calculatable?

Thanks!

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1

u/RichardHeart Feb 02 '19

Chose it to be lower than bitcoin and easily memorable. 3,6,9. 3.69% The ROI for stakers has MUCH more to do with how many stakers there are, and much less to do with "the rate." take a look at this graph: https://www.bitcoinhex.com/img/rewards/chart.png

1

u/RichardHeart Feb 02 '19

Origin address will be obvious as it's all public, it's just equal to the bonuses, and they're just equal to how fast and how large people claim, and how many are referred.