Responsible Altcoin Developers Should Follow Stellar's Distribution Model; Allocate Coins for Bitcoin Holders

The animosity between cryptocurrency communities has resulted in a toxic environment that hurts the industry as a whole. Don't get me wrong, competition is great and the Altcoin industry has driven innovation in the cryptocurrency space as developers try new concepts that Bitcoin devs are too conservative to implement themselves. This has resulted in a fascinating free market competitive environment where the most innovative coins are able to overtake those which fail bring anything new to the table. At the same time, speculative investors looking to cash in on the next big idea, have lost tons of money on coins that have failed spectacularly, such as dogecoin, vertcoin, and blackcoin. This has created a profit motive situation where investors and developers are incentivized to promote their own coins while targeting the negative aspects of competing coins in the media.

For example, it hurts the entire cryptocurrency community if Ripple supporters are going on CNN and saying Bitcoin will fail and vice versa when Bitcoin supporters go on mainstream media outlets claiming Ripple will fail. This creates a situation where the average person who is intrigued by cryptocurrencies is afraid of the uncertainty and chooses to not invest in any of them. This phenomenon hurts the industry as a whole and has slowed mainstream adoption as a result.

What if I told you there was an easy solution to this issue?

The solution is simple, all responsible Altcoin developers should follow Stellar's distribution model and the industry should self-regulate and promote those that do. What makes Stellar's distribution model particularly special is that they plan to award all current bitcoin holders Stellar proportional to their current bitcoin holdings. This means that the interests of those investing or developing Stellar are aligned with Bitcoiners. If all Altcoin developers were to take this approach, then individuals investing in Bitcoin would no longer need to worry about an altcoin surpassing Bitcoin because they would have an automatic stake in all future cryptocurrencies. In effect, buying bitcoin would essentially allow you to buy into the entire industry, and if any cryptocurrency were to succeed then the investor would see the resulting profits. Moving to this model industry-wide would result in higher demand for bitcoin and therefore a higher price. Furthermore, there would presumably be a lot less bad press aimed at specific cryptocurrencies because investors and developers throughout the industry would have aligned profit motives.

The Distribution Model

The Stellar Distribution Model

The Stellar Distribution Model

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