The following content may involve legal issues, but we only discuss its possibilities
If talk about the chia mine project only, it is successful, it already has the largest capacity.
But to be widely used in the financial market, the problem of pre-farmed xch(21,000,000) must be solved. No one is willing to invest in xch or accept xch directly, because more than 90% of xch is currently owned by pre-farmed xch. This is an uncertain threat to anyone investing in xch.
The best way:
Chia officially restricts the use of pre-farmed xch, we don’t believe in any promises, but we believe in chainblock, as long as the use of pre-farmed xch is restricted in the code.
for example, the current farmed xch is 1,000,000 , they can’t use the pre-farmed xch more than 10% of the farmed xch, which is 100,000 xch. With the increase of farmed xch, they can use more pre-farmed xch. This will not have a big impact on the market.
The worst way:
The chia project is not just for the chia team, it has involved millions of famers, and some of them even invested millions of dollars. If the official hasn’t taken any action in time (at least it seems that they are unwilling to face it now, the latest reply pre-farmed xch is used to pay wages)
You can develop a third-party plug-in or patch to limit the use of pre-farmed wallet. As long as enough people install the plug-in, this problem can be easily solved. I believe most people are willing to install it. After all, this is related to everyone’s interests. The implementation principle is also relatively simple.
I believe that it can be done very well for a lot of programers, but this is likely to be opposed to the official and affect the follow-up development, but BTC etc. can develop very well without official support.
If they do it like ETH, I will appreciate them. They are crowdfunding. It is not a team with 90+%.
The current situation is that large investors will always worry about when they will put 21,000,000 on the market, which is fatal to the market. Once it is circulated for a period of time, it will stabilize.
Bram always stressed that “decentralization”, 90% is not decentralization.
As long as it is decentralized, the failure of Chia team company will not bring too much impact to the market, otherwise XCH will only be bound by Chia team.
The reason why we believe that chainblock is that it will not be affected by someone or organization
I much prefer the current method that keeps the market from being flooded with years of Chia output and instead keeps the Chia in the company as an asset for their IPO. Post going public it’ll be for the shareholders to decide whether its sold off and in what amounts.
I agree with you that Chia inc should lock down the pre-mine rather sooner than later. Right now it’s all just promises and intentions, and those are worth little in today’s world.
That said, the the fact that they do have the pre-mine setup the way they do is actually one of the reasons I do believe in this project as supposed to so many others out there.
This is not correct actually.
They have (successfully) used the pre-mine to attract investors to the sum of 60Mln usd. This is the capital they are using to pay wages and hire more people. So without actually bringing any XCH into the market. This method is exactly why they have the pre-mine inside they company and well, it seems to work exactly as planned.
Investors do have a claim on the pre-mine under certain conditions, but are encouraged to convert their claim into regular company shares before those conditions become a factor.
If they had done a public sale, right now XCH would be worth about 2 cents because of a massive supply of XCH being “free” on the market. Compared to ETH that started with 60.000.000 coins for sale the supply of Chia is much lower and in terms of value that’s a good thing.
So again, I agree with you that promises need yo be converted to (smart)contracts as soon as possible but other than that I believe they made a good choice with regard to the way they chose to setup the pre-mine,
Yes, It need to be implemented as soon as possible.
Whether it is the cryptocurrency market environment or for miners,
the time of pre-farmed XCHs are putting on market will be when chia starts from scratch.
If all pre-farmed XCHs were put on market , the XCH’s price may not be higher than flax(I don’t think they will do this, as long as their company can operate normally, but investors in the secondary market will not intervene when things are still unclear. They have too much, even if they sell a small part, it will have an impact on the market. .)
Pools can’t influence blocks in the same way as a BTC/ETH pool can though - in an ETH pool the pool creates the block and delegates finding the hash of that block to the workers, whereas in XCH the farmer still creates the block, so to stop the premine being spent you’d need to get 100% of farmers on board - since if you even had a few percent of farmers still running code that would still allow spending of the premine, it would be able to be spent eventually.
If you wanted to fork out the premine, wait a few months until the Chia team has developed everything useful that you think they’ll develop, and then create a true blockchain hard fork rather than a git clone, the difference is a true hard fork would assign the same XCH2 to XCH holders except the premine, whereas a git clone typically starts from zero with a new genesis block - assigning the new token to holders of the existing token better incentivizes the existing ecosystem to care about the new token. It will probably still be worth less than XCH, though - see Ethereum Classic, Bitcoin Cash, etc.
I believe so - assuming we mean having farmers refusing to create blocks that contain premine spends, if say 1% allow it then eventually a premine spend will go through, it will just take 100x longer. You could have nodes refuse to accept historical blocks with premine spends I suppose, but that would create some chaos.