Purpose, legal blockchain exploit

in #purpose7 years ago

First of all, the idea can work out if executed correctly (which code will assure at a later point) and it is insane.
For now, I would assure everyone to trust in Athene. He has to hold the DUBI he buys with the wall forever and I believe he will do that and he will also not take the ETH from the sell wall and run away with it. He does this for a Decentralized Universal Basic Income. That's his vision and I truly believe in him and his vision.

Athene is an activist who raised over 23 million dollars for charity while playing video games like world of warcraft and diablo3. He focused his mind lately to bring us the only cryptocurrency that will change the financial system as we know it.

Purpose trailer:

That's that.

Explanation:

This is what Reese is doing in the first 2 steps:

Step 1

Token Amount Price Total Price Type Interest
PRPS 1000 $ 100 $ 100'000 Sell 40 DUBI
DUBI 1000 $ 100 $ 100'000 Buy -
Step 2

Token Amount Price Total Price Type Interest
PRPS 990.09 $ 101 $ 100'000 Sell 39.6 DUBI
DUBI 1990.09 $ 101 $ 200'000 Buy -
So he keeps up a buywall for DUBI with the Total Price he gets for PRPS. + After each step is done he increases the price of the PRPS supplywall and the DUBI buywall by 1%.

The incentives to get DUBI are:

  • sell it into buywall immediately or at a later point to get a minimum of 4% of your investment back,
  • use it for products/services outside, e.g. the game Athene's crew will release soon.

The incentives to buy PRPS are:

  • sell it cheaper than the supplywall at a later point/step to make profit once,
  • lock it for 12 months and gain 4% interest in DUBI, which increases in value over time.

As explained on stream, the PRPS supplywall can be sustained by Reese, if he creates a charity and Athene gives out PRPS from his supply of almost 1 billion PRPS to big "charity investors" and the charity can use the invested money to speculate on the PRPS market.
Therefore regaining supply for the supplywall off the market.

The DUBI buywall means a guaranteed immediate interest of 4% for every PRPS investor from the latest step!
But even better, with each step investors gain 1% ontop of their initial interest and this is the key!
Otherwise, it would take everyone 25 years to make their investment back. Right? (4% * 25 = 100%)
But if you hodl your DUBI, the value increases with every new investor.

For example, after 100 steps the price of the buywall will be at $ 200, which would translate into 8% interest for investors of 100 steps earlier.
100 steps will always translate into a total of $10M new investments and 100% more of the initial interest for everyone who hodled for these 100 steps.
This implies that you have to wait 2500 steps, or in other words until a total of $ 250M of investments went in, until you can sell your initial 4% interest into the buywall and get 100% of your investment back!
So this means, the time of 25 years can be reduced drastically the more investments come in after you invested.
But also, that as soon as the rate of investments slows down, the increase of your interest will slow down !

Explanation ends here.

Now, there might be a minor flaw that I see and for everyone please correct me if I'm wrong or if this is unlikely to turn into a problem!
The presale can cause the buywall to fall every 12 months.

Let's say we are at step 112.

Total PRPS sold by Reese ~ 75'406
Max DUBI in circulation ~ 75k*0.04 = 3k + 50k from presale = 53k
Total DUBI buy wall price = $ 11'200'000
Total DUBI buy wall amount = 11.2M/211 ~ 53k
At this point, after 75k PRPS have been sold and with all of it locked, the buy wall can buy 100% of the maximum amount of DUBI in circulation if everyone sold.
But earlier, this would not be possible because there is too much DUBI from the presale and not enough investments yet to make the buywall strong enough.
The amount of steps or investments required to make the buywall strong enough for each new year and all of DUBI will increase exponentially.
So if everyone sold DUBI into the buywall after step 112 and after the next year starts, it would take for the buywall to grow enough not another 112 steps but another 272 steps or in other words another $ 27.2M of investments, because the buywall increases with each step. Right?
The stats after step 112+272=384 would be:

Total PRPS sold ~ 158'088
Max DUBI in circulation ~ 158k*0.04 = 6.3k + 50k from presale = 56.3k
Total DUBI buy wall price = $ 27'200'000
Total DUBI buy wall amount = 27.2M/483 = 56.3k
Of course this is only the case if all people from the presale would sell all their DUBI at some point / each year.
But if that would happen the guarantee for interest would be gone for some time until enough new investments come in.
I assume that if the presale didn't happen at the cheap rate, this would not be a problem.
The only solution I see is either get every presaler to hodl alot of their PRPS and DUBI for eternity or to stagger the buywall price accordingly.