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2015 September 19th-21st

The (r)evolution has not happened yet

A caricature of current altcoin economics, and
the consumer attitude it is causing & caused by.

(Originally I planned to post into a coin thread, but then I realized:
The total amount of text is probably longer than their whole thread.
It would not have been fair to pollute their factual design discussions.
Thus not posting a whole text there. Is of general interest, anyways.)

What is this about?
The premine discussion ... and our planetary future ;-)

Where do I come from?
Ecology, peace (*), fairness, ethics, freedom. I am seeing patterns in cryptoland that remind me of those contexts. Since my Bitcoin initiation, I had gone from mining, to trading, to coding crypto software; so I know several perspectives. I had always refused to help creating a premined clone - until now. But also ... my experience in ~2 years in the scene, and more than 1500 hours (the past ~1 year) of over-enthusiastically building many beautiful independent projects is showing that e.g.

  • ... donations very seldom work out. 

I am reflecting a lot about reasons.

So easy now, to send 1 dollar across the globe - still, this almost never happens.

(just check addresses on /give/. Still: Thx a 10^6 to every supporter! And you can prove me wrong now. Simple: Sharing is caring.)
(My part in it might have been creating ugly, useless, unwanted, unnecessary, not-understood, and too complicated products :-)
(Too ethical - I lack a necessary cold heart to be economically competitive. Should team up with ruthless salespeople. Contact me *g*)


I could find some interesting insights when pondering about economics:


The thesis describes a part (not all) of current altcoin economics, from a rather sarcastic viewpoint (yes, entertainment is also intended, and I do love language) - and suggests one new element of an alternative approach. 

It is not enough - but this one puzzle piece is worth to be tried out - by hopefully many of you. To see if it really works. What works, what not. When you read the following text, you get to know a simple social tool. Then you can already apply it yourself, in your favorite thread (No tech needed. Enabled simply by communicating with those sharing common interests).

While the antithesis is a -possibly surprising- opposite route:  IFF you go into the -IMHO- less beautiful direction, then please go down deeper! When you follow that old route ... then at least do it right. 

There is no synthesis yet - I am really puzzled, what to do with this understanding now.



There is an unholy relation between coin devs' premine, and users' attitude:

Can be seen as overview:

urrent situation,

Collusion about
Costs does lead to
Catastrophy, or:

Cuit that ... and:

Come together,
Create real
Community, e.g. with
Crowdbounty, then

Celebrate, because
Cryptos save us
Cleverly. And former

Consumers become
Creators; and now
Collossaly empowered
Can stop


Probably because this scene is pampered with premine coins, a large group of users has been educated into a consumer attitude: To be constantly screaming for the coin devs to change their diapers.

And I do understand that they say 

"the coin devs have a {huge,immoral,crazy,scam} premine,
so I have rights, and demand that everything is done for me

And without me paying for it! ... by the way. A freebie culture. But bills do have to be paid, demanded work is not for free --> At the end of the day, it promotes a seldom-admitted collusion of coindevs+earlybirds, against a (not-even-here-yet!) 3rd group - onto which the premine is (already planned to be) dumped.

very few of the 1000+ coins survive their second price rally 
... and afterwards, it is only going downhill,

... a large part of this whole economy here is based on 
    "we let the bagholders pay the bills", 

... and everyone (coin devs + earlybirds) are celebrating
    their so-called "profits" before. 

... congratulating each other for "good picks", i.e. ideally
    (buying &) selling two waves before the final bagholder wave.

Hooray. Not the same, but reminds a bit of a Ponzi, no?

In the meantime, irresponsible amounts of computing power are burnt. (If value were created, fine. But in most cases:) For not much later ... completely worthless tokens! What a waste of CO2, money, nuclear pollution, oil = war = refugees and dead people, hardware, time, and last but not least: enthusiasm = human fuel. Food.

And all that for a mass hysteria of having cloned the / invested into the "next world-currency". And who has, wakes up the the reality, that he must then help to create more hype = inventing increasingly false promises. Even though EVERYONE has a premonition of the truth - but secretly, of course:

Let the people who come after me pay all bills 

= exactly like the ecological endgame (D.Jensen, skip intro) that is the most probable outcome
    of our irrational (short-term: successful, long term: dead) throw-away civilization.


Hail To Capitalism 2.0:

It is not about substance anymore, but
the promise is the product now, and 
most costs are deferred to the future,

with precarisation of working conditions & payments - and ruthless destruction of nature, society, our future.

Why do I say all that?

Because everyone discussing it, and voting AGAINST A PREMINE now: Yes

- no premine is probably: Possible. Sustainable. Honest. Fairer. Scalable.

BUT ... you all enjoy new responsibilities then.  "Ah no, then I don't want that" - ? ? ?

With responsibilities ... comes power. - To turn around that well known saying.

Everyone has to grow up just a bit. Raise your consciousness only one level.
Let the (r)evolution also happen to yourself - not only to your technology!

--> Get together. Start financing all those beautiful projects yourself, that you are wishing for. 

It would 

* give you the power back (that is handed over so naively right now), and 
* let you experience the beauty of a real -and if it works out-
* sustainable community, that is 
* built on a fair foundation, and is actually 
* paying her own bills - right when she buys.

And ... no, not communism, not all all - but still, these properties are shared: 

* The outcome then is truely owned by the people 
* after it was created by the people themselves.

Such a place is 

* easily scalable, because 
* the more initiative, the better it gets, 
* the more people participate, the more money can be spent ...

In contrast,
a premine economy can turn zombie - as soon as the premine is gone. Because freebie consumers had been bred. And for the devs, the initial 'abundance enthusiasm' ... turns into 'scarcity fear' while premine is shrinking. Better abandon before it is completely gone. And then it is time to ... clone the next coin. Rinse, repeat.

"So, yes. But what now? We don't have more beautiful alternatives."

Start thinking outside the box. One way - to at least try out, is called crowdbounty

= You call out what you wish for. Then everyone who agrees ... pledges a small amount to it. Mild moderation, holding the energy. An independent escrow sits between money givers, and work givers. And then you can all go shopping together, and choose the best deal you might get. Easy. Fair. Collective. Ecological. Scalable. Trustworthy. And something new ... finally.

Now jump into your time machine of choice, and imagine you have succeeded to do this a dozen times together. It can become easy, really easy - to collectively buy and create huge objects, for unthinkable amounts of money.

A self-made, temporary but real DO ("decentralized organization"),
existent only between the 
    "we need ... let us buy together.",
and the 
    "... received last payment. Thanks, a pleasure to work for you all.".
Then it dissolves again.

And no new technology needed for it - apart from your cryptocurrency of choice.

Learning on the way, for everyone involved (and yes, sometimes is also fails ... and you learn from that together). Social aptitude rising. Community comes from shared experiences. Remaining are not only good products that are paid for, and built with love, but also memories how well it went. Which creates trust, beauty, contentment, happiness, power - and freedom!

I wonder, what cryptocurrencies are really good for ... if we stil do not use them to buy stuff, create jobs, and start executing our purchasing power, to finally change the social(!) world around us substantially, 
and it needs change desperately. Or we might wake up in a collective prison, run by the ruthless 1%. They "hacked" your (formerly democratic?) control system decades ago, their interests are opposite to yours - and what you are presented as leaders, are affirming warders. No hope there.

IMHO cryptocurrencies are not only about getting rich quickly, - there are many other shady ways to extract money from your fellow humans. But they might allow us - perhaps for the first time in history - to create better, fairer (feature rich, diverse, domain-specific) economical sub(!)-systems. Economical systems that -if we choose to- we are all shaping ... together.

But:           The (r)evolution has not happened yet.

                 I do see technology evolving. But people also? And social systems too?

Not to be taken too seriously, but laconic:

Crying for a nation state to solve your all problems
.... because taxes + deficit + inflation.

        to me sounds similar to

Crying for the coin devs to solve all your problems
... because premine = let bagholders pay.

Architecturally, it is the old way. An understandable way. Proven, well working - just ported to cryptocurrencies. Perfect for - unfree people. And it is an old way, anyways. All this is just the beginning. We are inventing new worlds that we will be living in. Let's try traveling with less baggage.



Premine can kill the above
Progressive ideas. So you

Pay for all, and everyone's
Precious lifetime. For rising

Prices you have to work
Professionally on a whole
Portfolio of
Products and services, to

Push the collapse of your
Ponzi as far as
Possible into the
Phuture, so ...

Please do not be
Parsimonious but
Pragmatic: Make your
Premine better


(coin specific numbers = you'll be able to abstract to any coin)

If you decide to create a premine, then do yourself a favour to make it

     much larger than your idea of 200,000 coins
     (example number - in relation with block reward & time ... below)

And if only to make it right for those investors who are expecting a long-term future of your coin ecosphere. And you also expect this to be more than a straw fire, right?

Why larger?

As soon as you create a premine ...
all the above progressive ideas are: Dead.

Premine discourages voluntary work.

Premine harms self-organization. 

While it allows to create a temporary community-of-takers ... premine can kill real community. 

People might just not go the extra mile, a real (=self-responsible) community might never appear.

Essentially - then you are running your circus alone, on limited fuel. Diminishing fuel. 

You must build everything yourself, very slow. 
(How expensive is your own work? Perhaps you hope to instamine, and hide it well? Same same, and premine = more honest.)

You must pay for everything else.
And even with -consequentially- horrible salaries, you need funds for that.

If you constantly have to think "scarcity scarcity scarcity", you are in danger of becoming overworked, unrealistic, haggard, and desperate. Bad climate, bad for your coin. 

Do the math:

With 200,000 premine, and 6 coins per block, then
already after 33,333 blocks (= 23 days at 1-minute blocks), 
your whole premine is worth less than the miners'/stakers' wealth.

And miners have no choice but dump some of their coins, because they pay for hardware, electricity, and actually put their precious life-time into it, too.

If they dump 50%, then you will have to find buyers for 6*60*24*7*0.5= 30,000 coins - per week! Long-term, every single week - to reach a stable price, at least. A few weeks without new buyers, and your coin price stabilizes ... but at a lower price, i.e. trolls who have bought too early are now sitting on your back and FUD'ing your good work.

Work for which you plan to take (only a part of a) 200,000 coins premine. To routinely seduce new buyers, you tirelessly need good news, improvements, new versions, merchant adoption, products that can be bought for your coin, community management (the consumer types you are breeding want you to change their diapers, did I mention that?); a whole department to create new illusions, in fancy graphics & videos; and once there is a newer technology appearing, you have to implement it into your clone, or you'll be called "backwards". Few coins have created a valid ecosystem that is still here and growing after 2 years. (Look at WCI, it has a different ranking than CMC - not artificial market cap but collective trading volume is key).

And for sowing and reaping greed motivation, you need to create a rising coin price. In the best case a slowly rising price - otherwise two price rallies (i.e. two dumps) later, your coin is likely dead. It needs a delicate balance. But ... make it 40 or 50,000 coins per week ... that you must hype to be bought, by more and more innocent people - every week, from now on. 

Until the Ponzi falls apart, and the only thing left is ... bagholders with worthless tokens.
And - depending on how the belief system is implemented in your local realm of 'The Matrix' - perhaps: Bad Karma.


Will you be able to do that?

Then what is your real price for that? 

How much do you value your own work?
How much do you value the work of the people that you hire?
How long do you plan to incubate the coin, to then perhaps have it breathing by itself?

--> IFF you do one, then generate a large enough premine!


No synthesis yet, truly sorry.


There must be a third way, too. But what is it? Just some ideas:

Perhaps smart contracts can partly help - yes.
Or: Be inspired by this text.

Also, I do not understand, why "taxed" coins have not appeared more often. Example: Per block 4 coins to the miner, and 1 or 2 coins to a dev fund initially; a predefined, falling tax rate - each block a little less, so that the dev team gets ~0 after 1 million blocks (= 1.9 years at 1 minute blocks). Numbers are only examples. Advantage: No premine can be dumped in one big market destruction; the few devs and the many miners are put into the same boat. After incubation, the coin can perhaps be alive by itself - while the initial consumer attitude might have stepwise turned into a real community attitude. Not so sure about the last hope, though.

A too large premine can later be provably burnt, when you have succeeded in everything you wanted to do, and your community has grown up, to take over.

Now dissected - perhaps the above dichotomy can be put together again? In a completely new way?

But that are technological solutions.
The collective search for a better world can be answered only partly with technology.


There is no shortcut into a future that is humanely livable without
a rising consciousness of humans, and reinvented social tools.

--> It might be that this TECHNOLOGY and ECONOMY is in a trap. 
--> Perhaps until ... us HUMANS evolve, and our SOCIAL tools too.

But really ... I have no synthesis!






Show that you like this:  [BTC] 

Not into bitcoin? Too broke to donate? -->
Other options: - thanks!


Interested in your opinion. You see other ways out of the dilemma?
I got it completely distorted, and your reality looks very different?

If however, the text has made you angry, please do write
- but sleep one night before sending. Not interested in agitated fighting.
Toxic, insulting, ad-hominem comments ... I cannot take exceptionally well.
Too soft for that. So I press delete.                 That is also why:

I decide not to post this whole text directly into "bitcoinhell" :-)

P.S.: If I do not answer right away ... simply assume that I am too busy. Sorry.

Copyright 2015 AltSheetsDev.
version v07, 2015-09-19 to 2015-09-21

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