DashDude
Active member
This one is a bit out there, but has anyone considered a merger/buyout of another coin?
Metcalf's law suggests that due to network effects a network's value grows by it's number of users squared. Therefore if two coins with approximately the same number of users merged it's number of users would double and the coin market cap would increase by 4 times! Why not take advantage of this phenomenon and merge coins that are reasonably compatible to begin with?
There are a few ways this could be done. If the leadership of both coins agreed they could simply replace two different coins with one single coin. This would be kind of a strong arm approach since the old chains would have to be canceled out somehow.
Another approach would be to offer users of another coin an equal value in DASH coin. New DASH coins would have to be created (probably by hard fork) to fund this, but it could be made non-inflationary by "burning" the old coins that are being tendered for the new DASH coins. The advantage of this approach is that people who don't want to move to DASH don't have to.
Now many of you might be thinking that if someone wants to switch coins why not just sell the old coin and buy the new one? Well, this certainly works, but when you do this you only receive 1 for 1 value. By doing a merger the nominal value still goes up 1 for 1 (to prevent price inflation), but due to the network effect and Metcalf's law it should increase by a lot more over time.
I understand that crypto people tend to strongly support their favorite coin so they might not be inclined to merge with another coin. However, if it was sold the right way and the community leaders were on board it might work.
The timing is also important. Currently we are still in an expansionary period with new coins being created every week it seems. However, this won't last forever. A consolidation phase will kick in eventually. At that point some coins will have two choices - fade away into irrelevance or merge and become stronger.
Choosing the right coin to merge with is also critical. Some are just not compatible. For example, small block Bitcoin would be a non-starter to merge with DASH. However, what about a big block BCC? What about Litecoin? These coins are ideologically fairly close to DASH (though I think they trail feature wise).
OK, like I said - this is just something I think we might see some day in the future. What do you think of this idea?
Metcalf's law suggests that due to network effects a network's value grows by it's number of users squared. Therefore if two coins with approximately the same number of users merged it's number of users would double and the coin market cap would increase by 4 times! Why not take advantage of this phenomenon and merge coins that are reasonably compatible to begin with?
There are a few ways this could be done. If the leadership of both coins agreed they could simply replace two different coins with one single coin. This would be kind of a strong arm approach since the old chains would have to be canceled out somehow.
Another approach would be to offer users of another coin an equal value in DASH coin. New DASH coins would have to be created (probably by hard fork) to fund this, but it could be made non-inflationary by "burning" the old coins that are being tendered for the new DASH coins. The advantage of this approach is that people who don't want to move to DASH don't have to.
Now many of you might be thinking that if someone wants to switch coins why not just sell the old coin and buy the new one? Well, this certainly works, but when you do this you only receive 1 for 1 value. By doing a merger the nominal value still goes up 1 for 1 (to prevent price inflation), but due to the network effect and Metcalf's law it should increase by a lot more over time.
I understand that crypto people tend to strongly support their favorite coin so they might not be inclined to merge with another coin. However, if it was sold the right way and the community leaders were on board it might work.
The timing is also important. Currently we are still in an expansionary period with new coins being created every week it seems. However, this won't last forever. A consolidation phase will kick in eventually. At that point some coins will have two choices - fade away into irrelevance or merge and become stronger.
Choosing the right coin to merge with is also critical. Some are just not compatible. For example, small block Bitcoin would be a non-starter to merge with DASH. However, what about a big block BCC? What about Litecoin? These coins are ideologically fairly close to DASH (though I think they trail feature wise).
OK, like I said - this is just something I think we might see some day in the future. What do you think of this idea?
