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2024
January 17th, 2018 at 3:56 pm
GBTC – you know I need to trade this one too, albo. Let me know when you get in and out.
Phil/sorry – I wish I could delete posts. I do indeed need to relax. haha!
GreenCoin – OK, I did some thinking after venting above. It was a thought good session and I have some important things to present. Here's the deal. The GreenCoin Foundation was an entity that had the responsibility of:
1: Running a centralized website of low-carbon producers (e.g., home solar guys) that self-reported periodic meter readings.
2: calculating the relative benefit in carbon reduction for renewable types (wind, solar, growing trees or whatever else the community agrees to etc etc etc) and,
3: Owning the Central address where half of the staked (newly generated coins went), and then paying them out subsequently to (1) based on pro rata production carbon savings calculated in (2).
It is very simple, both conceptually and operationally. Setting up the Foundation was done by a legal team to comply with US law. The new entity was a non-profit that offered the above 3 services for free. This is bar none the best way to run a crypto because you aren't a money transmitter (operations) because you aren't exchanging anything, and ultimately the value stays with the coin holders (value add) not a corporate person (better system, less friction). As long as everyone is treated the same and no one receives special treatment the system is fair.
I personally believe this is absolutely the best mechanism to fight climate change. Once emitted, CO2 has no value so it is difficult to make it into a commodity like oil, corn or gold. And it's spatially a global problem – everyone's emissions affects everyone else regardless of invisible lines drawn on maps. So who enforces the carbon market, the UN? The "carbon credit market" has spent 20 years going nowhere. This is low hanging fruit in how to out-innovate using crypto where no one saw it coming. Instead, the social value of the production is captured via a crypto which values knowledge (social groups) and not physical commodities and capital work (stocks and bonds). However, running a foundation means raising some money. The lawyers didn't see the forest for the trees and called in the payable so the foundation had to be closed because it couldn't pay it. The key to the central address was published in the open, which is now owned by everyone and anyone and the experiment is over. The coins still exists of course, as this is how these things work, but the project around it does not. Anyone can start a project around it and generate consensus to establish the movement at hand. You could do this with Bitcoin too BTW, for example if you convince 50% of the miners to join your movement the coin goes where your movement goes (say, triple the amount of outstanding coins, as an example). People fail to understand this way too often: a blockchain is a consensus mechanism – it can always be changed if the consensus is to change it! As another example, Phil could take over GreenCoin and make it a PSW project – whatever he wanted it to be used for or represent used for (like paying the annual fees). Having no formal project in place, this is probably the best way to explain what GreenCoin actually is right now – a group of guys at PSW that sort of care about it. If you think about it, that's what GreenCoin actually is as a Social Group. And oddly, it has some real value because of this; about 0.00000004 BTC (5 satoshi) each or $1.5 or $2M market cap maybe. That's kind of interesting to think about, because it's YOU that represents this value.
That is indeed where we are now.
As for the future, I would indeed start over on the original project concept if others had the imperative and we teamed up. This is done by announcing the project intent in the forum, fielding feedback, and ultimately getting 50% consensus (simple for a coin with no on-going project). Then the foundation re-emerges and begins operations: building a producer website and begins the process of onboarding users, doing the customer service, etc and all of the requisite tasks of buildng a network of users. For me I would do all of that for free (as a coinholder I have upside, and so do you. See how the system works, it's kinda great!). There would be 3rd party coin programmer and developer costs and other such ad nauseum costs, but for my part I need nothing for the work. So from the 1-2-3 above, I would do 1 and 2. But I won't do 3 without legal. And that legal spend starts at $250k.
When I talk about these rather small costs people pushed it down, oh it should $10-20k. Ok, so here's the deal. I'll do 1 and 2 above. All day long. For free. There'll be web dev costs and such as I said and I'll push those down because I know how to do that. But I won't do 3 without legal. I know you won't either and here's why: let's say I do 1 and 2, that is, I run the website, get the users pro rata carbon data all packaged up, and generate the payout file. But, the actual file goes to you. You're the one who holds the central address key. You're the one who puts the file into the wallet and presses "send." You're the one responsible for making thousands to millions of micro-cryptocurrency payments around the world every day. That's on you. Do you want to do that without legal? If anyone here wants to do that then I will oblige and off we go. No legal costs necessary.
Otherwise, it's $250k and I wouldn't bother lifting a finger to restart this project again without a commitment in this range. And that's not a big amount. Now back when crypto was <$20B (before Jan 2017), may be it's a lot. But how big can a coin get now? It used to be 1 or 2 coins over $1-B now it's 20-30 or more. If someone else wants to run it I will happily do the work and answer to the CEO, or executive director or whatever it is, and they can decide how much is the minimum amount, but the responsibility is on them and not me.