The pre-mined BitcoinGold is creating several confusions and arguments. Officially it will begin to be mined the 1 of November.
In the meantime what is happening?
Why is there a BitcoinGold pre-minted?
As with many cryptocurrencies, the work of developers has to be paid. If they work full time, they deserve a salary and thus guarantee the survival of the project. Very different is when a person supports in his free ratios and contributes what he can.
Today we are in a very strong market and if the projects do not self-sustain, they do not grow. They end up being chains of “orphan” blocks without sponsors or investors. The project dies in just 2 or 3 years. Time for developers to demonstrate the usefulness of their cryptocurrency. If not, they end up in the trash of some office without more.
Pre-minting or forecasting of currencies means that they can ‘stock up’ and then sell them at a good starting price.
That is why many times we see the first day out of the cryptocurrency a big sale of coins. It may go up or down, depending on the support of large and private investors. The cryptocurrency increases in value if there is confidence in the project and it is serious. That is why it is so important to describe the team’s pretensions. This is called a “roadmap”.
In order to support the current and future development of Bitcoin Gold, the first blocks after the fork have a very low level of difficulty. This will allow the development team to mine these blocks very quickly, and then the new difficulty setting algorithm will be activated. Then everyone will have the same opportunity to undermine under equal conditions.
As a result, the Bitcoin Gold development team will manage 0.476% of the total coin supply, which will be the main source of funding for all future development of this project, including valuable research and testing that may someday help consensus for a change in the work test in Bitcoin itself.
● The initial BTG extracted by the development team of Bitcoin Gold (0.476%) will be maintained in multi-signature wallets.
● 60% of the funds will be blocked by time and released in proportional amounts over three years to cover development costs.
● All significant costs will be made completely transparent in accordance with best practices of similar open source projects.
● Most of the funds will be allocated as developer rewards, which will be posted as problems in the GitHub repository of BTCGPU.
● Everyone can participate in the Bitcoin Gold developer rewards program; To gain the reward, you must provide the open source code that meets the specific requirements. The Bitcoin community will be able to support these bounties by buying or maintaining BTG, as the price of the currency will determine how strong the mining incentive will be.
Create a strong mining community with GPU
The rewards for mining are the ones that must go fast. In addition, the more support they have, the more new opportunities they create. Without the effort and confidence of the miners, they will not be able to raise the price of BitcoinGold. It is the first challenge to be prepared. For now, Nicehash has announced that part of its sales power in the algorithm Equihash, will stop BitcoinGold. This will happen automatically, as long as the hash packages are sold at a good price.
Bear in mind that most of these development rewards are designed to benefit the entire Bitcoin ecosystem, not just the Bitcoin Gold fork. Bitcoin Gold itself was designed to be a Bitcoin feature, not be a rival.
Some of these essential functions will be performed by full-time employees, while others will be outsourced to third-party professional services. All these expenses will be made as transparent as possible without compromising operational safety.
Project start data
BITCOIN GOLD 40%
BTG Start-up costs Application achievements and collaboration 7%
The preparation costs 5%
Community Development 3%
Initial reward for core team 5%
Annual expenditure 20%
BITCOIN GOLD 60%
BTG Time limited funds; 20% released per year Development 30% Ecosystem 15% Community 15% Total 60%
● Central protocol
● Network of lightning
● Bech32 Addresses
● Atomic swaps between strings
● Decentralized exchange Operational and infrastructure costs:
● Servers: ○ 12 complete nodes on 6 continents ○ 5+ DNS seeds ○ Website ● Domain rate ● System administration
● Security and proof of penetration by third parties Future social action: ● Economic Development Fund: ○ BTG debit card program (Latin America)
Decentralized fiat-crypto brokerage network (Global)
● Blockchain Education Fund: ○ Investment in content creators and influential people who contribute most effectively to the increase Bitcoin awareness and adoption. ● GPU Mining Infrastructure Fund.
○ Small/medium scale individual / commercial loans for GPU mining hardware operations.
○ Developer advantages for easy-to-use mining applications that can lead mining to a non-technical environment and multilingual audience.
Future communication costs: ● Meetups and developer conferences ● Social networking ● Asset design ● Press releases
In the end, we all want to eat and live from our work. A type of funding that is sometimes a matter of discussion.
The pre-mined, helps the launch of the project, without the need to borrow.