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Dogeparty! Counterparty on the Doge Blockchain! Proof of Burn? Or Proof of Charity?

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  • dpc

    What problem are we trying to solve?

    Does fairness matter or is it something else? Lets use NXT as an example because many see them as an example of an unfair distribution (I personally don't accuse them of that). So a year down the road NXT has the best offering on the market, free transaction, 100% security, Carbon neutral, decentralized and every feature you've ever asked for. No one would care about the fairness of the initial fundraising. What we would care about is the fact that such a large percentage of coins is held in so few hands. Those few holders could cause wreak havoc on the market. NXT isn't alone in this regard. Just about every coin has just about the same issue, even bitcoin.

    So, rather than burn/charity/fundraising for a single initial drop why not do a scheduled drop that happens over years. Have the devs set a monthly raise amount they want to get (or charity target). It shouldn't matter if they spend this money on their cats, development or charity because if the project is good more people will want to be involved regardless. Each month the number of people who want to donate & participate in the drop can register if they didn't the previous month. Those who register donate: monthly_ask/number_of_donors to the developers and get their monthly share of the coins. This could be modified to a share based system so that some could donate a smaller amount than others and get a proportionally smaller share. But everyone who wanted to participate could. Spread the drop over a few years and you'd have a far better distributed coin assuming the project was popular.

    I think think this aligns the incentives of individuals and the entire ecosystem/coin much better than a single drop.

    If this sounds familiar it's because it's pretty close to what Adam is doing with LTBc. As I wrote this I realized how LTBc is doing something very similar but with participation. LTB must have stolen my idea before I had it.

    Proof of Burn and Charity go a long way in spreading distribution since there isn't the developers share, but they only go so far. Anyone who is mourning a loss, traveling through india, on a tech sebatical... is going to miss that drop and ability to participate forever. It's fine to say "**it happens, too bad for those people", but this means the entire network is much weaker. If there is an argument that people who missed the drop can participate on the open market I'd point you to just about every coin out, it's just not the case. If there were enough coins liquid for equalizing distribution the prices would plummet.

    Also, it should be noted that proof of charity could be added to this model if there is no requirement for developer funds.

    Just my 2 cents.

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  • greenguitar28

    I am in favor of proof of charity as long as it can be pulled off in a fair and transparent way.

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  • Mike

    I'll start out by saying that originally I was 100% in favor of PoC for any number of reasons.

    However, and I was not a fan of PoB for bitcoin, I think PoB may actually be the more elegant solution for Doge.

    First of all, I have heard that the massive number of Dogecoins is a large part of the reason that the network is dying. They were generated so quickly that the block rewards have halved too quickly. Due to that, there is still a lot of inflationary potential in the network but the rewards are too small for the deflationary price increases to settle in and balance this out, thus making mining economically feasible.

    Perhaps, then, if a large number of Dogecoins were to be burned in an effort to establish Dogeparty, this would help to limit the supply further. This would help to push the price up in the short-term which should bring more miners to the table and give the network more time to figure out why it brings value to miners. it could potentially bring price up far enough that the inflationary/deflationary nature of the coin balances back out again and the chain sustains itself.

    These are terribly formed thoughts. Written in the narrative because I'm in a hurry. So sorry in advance!

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  • dpc

    Doge was a really amazing party in a really terrible apartment. We all remember how much fun we had and want to relive those days remembering how much fun could be had with so few accouterments. But the party is over and now it's just a terrible apartment that needs new carpet, and a new foundation. It has some features that make it better than bitcoin, but in return it has fatal flaws. Today, having a few more features than bitcoin isn't much of a resume. What makes doge special is certainly not the tech. I would agree that community is more important than tech, but if you want to build on top of doge for the tech's sake you are loosing the only value it has. The transaction fee problem needs to be solved, but moving in to doge could cause problems that outweigh andy transactional savings.

    Damn, why am I a bummer all the time?

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  • JayeK

    This looks promising and with "such" community. Look forward to seeing this launch. Upon first read, proof of burn is where I'm leaning.

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  • William

    Proof of Charity sounds pretty complicated as described in @adam's post. Can anyone dumb it down for me? I might would be in favor of PoC if I can choose the charity I donate to, but I'm not even sure that this is how it works...

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  • dpc

    Proof of Charity operates exactly the same as Proof of Burn. The only difference is proof of charity goes to a charity instead of a lost wallet where no one can recover the coins.

    Are you familiar with Proof of Burn, like what counterparty did?

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  • Halo

    @adam http://dogeparty.io/ is launching next week, if you haven't yet listened to the intro of episode 129 I'd suggest taking ten minutes and getting up to speed

    http://letstalkbitcoin.com/blog/post/lets-talk-bitcoin-129-dogeparty-and-delegated-proof-of-stake

    Proof of Charity or Proof of Burn? What do you think?

    I listened to it earlier today and couldn't help but think what would happen if doge was 51% attacked. Even if the direct effect of that attack are harmless in the long run, there will be a huge drop in confidence in the coin. With the price of doge trending down and scrypt miners switched to other coins, wouldn't it be better to consider something like litecoin even if blocks are generated much slower in comparison?

    Or is the goal to just use the fastest/cheapest coin as a means of distributing the coins? I just think it would be better to go with a coin that that will be continued to be mined for years to come. With the advent of scrpyt miners right around the corner, from what I understand, it would only take a few of the first miners who receive their preorders before everyone else to take over the majority of the network hashrate and destroy the credibility of the coin.

    A shorter block time also means a fork could do more damage since more blocks could be removed removed from the current blockchain as the new longest chain omits them.

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  • cracker

    Being someone that isn't a stakeholder of a single doge coin, I will buy up the little amount I can afford and spend it on XDP if PoC is used. Essentially I would be donating money to charity, while at the same time making an investment in something that has the potential to "go to da moon". Even if my investment falls flat on its face, at least my money went to a good cause.

    From what I have heard, the Doge community are some of the most charitable people around, so I'd be pretty surprised if they don't push for the PoC idea hard.

    Logistics are an obvious concern, maybe if the charities were picked from a list like this, more people would feel it is fair and transparent.

    http://www.charitynavigator.org/index.cfm?bay=topten.detail&listid=92#.U885_x_7Hv1

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  • philsong

    is it a clone of counterparty python code? i also saw there is a branch for dogeparty in counterparty github

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