NigeriaCoin - Coin Distribution Symmetry by NigeriaCoin NigeriaCoin is a peer-to-peer virtual protocol and currency and similar to Bitcoin and

Litecoin. It is specifically designed with one primary differentiator, Coin Distribution Symmetry (CDS). CDS is a inflation adjustment mechanism to minimize dilution of share values from PoW mining. This provides both miners and investors with incentives to participate in the currency. Why Nigeria? "Nigeria is going to shoot past South Africa to become the largest economy in Africa on March 31." (nigeria giving sa a run for it's money, 2014) Nigeria also has more citizens than Russia and actually has a quite tech savvy community. Despite these positive things, Nigerians are still struggling with a centralized and corrupt central bank and currency. "Nigerias currency, the naira, has stayed in free -fall, the day after the suspension of graft-fighting central bank chief Lamido Sanusi. Analysts say the move makes investors nervous and will encourage capital flight." (nigeria's currency tumbles, 2014). In the country, a huge gap exists between the wealthy elite and the rest of the population. Some politicians vow to "fight corruption that keeps an elite fabulously wealthy while the majority of Africa's most populous nation ... struggle to survive on less than $1 a day, according to U.N. statistics." Yet, due to a lack of transparency in the monetary system and a centralized currency, it is still widespread to a sickening degree. For instance, "no one has been prosecuted for a fuel subsidy scam uncovered in 2012, in which some $17 billion was paid to companies for fuel that never was delivered." (therepublic - nigeria missing billions, 2014). Most foreigners know of Nigeria only for their 419 scams. NigeriaCoin acknowledges the struggles of the repressed population and salutes their creativity in trying to break free from the shackles of a corrupt government. Their entrepreneurial spirit and creativity has led them to an easy source of cash by conning greedy foreigners into prepaying a little bit of money in order to get access to a much larger future sum. It's truly greed on the part of people being scammed that's to blame and not the desperation of the repressed Nigerian people. To memorialize their efforts, NigeriaCoin will have 41900 coins as a reward for each block. Coin Distribution Symmetry Proof of Work coins are distributed at predefined intervals over a period of time. While this provides a fair distribution amongst mining participants, it hurts early investors. The crux of a truly decentralized and equal system is not creating imbalances in the economy. Investors who support the ideals of a coin should not be penalized for buying and holding while their shares become continually diluted.

CDS utlilizes proof of burn to destroy a premine which offsets new coins that are created from each block reward. This neutralizes the coins outstanding and ensures a equality for both miners and investors.

Case study: Litecoin / Vertcoin "We believe [Litecoin] needs to be released in a fair manner." "We have come up with a plan that we believe is the most fair." (bitcointalk [ann] litecoin, 2011) Litecoin decided that Scrypt PoW distribution with essentially 0 premine was the way to go. Approximately 84 million coins would be distributed through 50 coin block rewards which half every 840k blocks. Unfortunately, what they didn't take into consideration was the mining inflation. Vertcoin also has an identical block reward structure to Litecoin but was launched recently on January 11, 2014. Also, like Litecoin, Vertcoin also had a 0% premine. We will analyze the price action of Vertcoin due to availability of price history. How fair is this distribution? Well, let's take the example of a person who purchased a Vertcoin on February 5, 2014 for $5 and holds it for a little over a month. We will assume that all new coins mined are held and not sold to illustrate the severe inflation effects on a new coin.

Date 20140205 20140215 20140225 20140307 20140317

Price $5.5 $4.61 $3.97 $3.49 $3.11

MarketCap $8,250,000 $8,250,000 $8,250,000 $8,250,000 $8,250,000

Total Coins Outstanding 1500000 1788000 2076000 2364000 2652000

Annualized Inflation 103304% 34016% 15175% 8208% 5054%

As you can see here, an investor would lose approximately 43% of his investment in less than two months! This is with a mine and hold mantra that's upheld 100%. Just for analysis sake, lets incorporate miners selling 100% of their coins to pay their electricity costs into a perfect efficient market. This model assumes no additional capital flows outside of the first investment and the miners selling.

Date 20140205 20140215 20140225 20140307 20140317

Price $5.5 $3.86 $2.86 $2.20 $1.74

MarketCap $8,250,000 $8,250,000 $8,250,000 $8,250,000 $8,250,000

Total Coins Outstanding 1500000 1788000 2076000 2364000 2652000

Annualized Inflation 103304% 34016% 15175% 8208% 5054%

This second scenario here closely reflects the market prices of Vertcoin. What this tells me is that no significant new inflows came into Vertcoin from Feb 5, 2014 to March 17, 2014, and that almost the entirety of the price drop can be attributed to PoW inflation (43%) and sales of mined coins. (25%) for a net drop in coin value of (68%).

(crytocurrencychart)

So what does a theoretical graph of the first few months of NigeriaCoin look like given no inflows, and PoW mining?

Yes, that's right. A straight line; representing true fairness to the people who are both investing and mining. Proof of Burn How does Proof of Burn work? Well, here's the technical definition By "burning" a tranche of bitcoins I just mean sending them to an address which is unspendable. The precise technical details of this will vary from cryptocurrency

to cryptocurrency. With Bitcoin, any address which is [the RIPEMD160/SHA256 hash of] a script that evaluates to false will do. So, the script should do a "deliberately silly" thing - instead of things like "check such-and-such signature, and put the validity result on the stack", it should do something like "add 2 and 2, and now check if what's on top of the stack is equal to 5". (Or just "push 4, and check if it's equal to 5". Anything of that sort.) There are thus an unbounded number of such scripts, with entropy saturating RIPEMD160 since you can choose big numbers to taste. So, bitcoins sent to such a txout can never be redeemed on a future txin. (Barring the cracking of RIPEMD160 and the finding of an alternative matching script, that is. If that happens, the cryptocurrency is in big trouble anyway!) The simple definition is, sending coins to an address that no one has the private keys to. You can create a valid send to address such as "Nigeriacoindistributionsymmetry001" or in the case of Bitcoin, "BoooooMtgoxcoldstorageisthecoldest" would work too. Because the blockchain is fully transparent, people can view the amount of coins sent to these addresses. So these coins are now as Archer says, "Burrrrnnnnn['d]."

TL;DR NigeriaCoin's CDS is simply, a premine of the coin which is destroyed at a predefined rate in a proof-of-burn to neutralize the dilution effects of PoW coin creation and mining.

(n.d.). Retrieved from crytocurrencychart: http://www.crytocurrencychart.com bitcointalk [ann] litecoin. (2011). Retrieved from https://bitcointalk.org/index.php?topic=47417.0 nigeria giving sa a run for it's money. (2014). Retrieved from http://www.iol.co.za/pretorianews/opinion/nigeria-giving-sa-a-run-for-its-money-1.1662730#.UyuQd_ldXAk nigeria's currency tumbles. (2014, 02 21). Retrieved from http://www.dw.de/nigerias-currency-tumblesafter-suspension-of-reformist-central-bank-governor-sanusi/a-17449199 therepublic - nigeria missing billions. (2014, 03 14). Retrieved 03 20, 2014, from http://www.therepublic.com/w/AF--Nigeria-Missing-Billions