The Burn command should be reinstated, but not for the creation of more XCP as this would undermine Counterparty’s currency through inflation. The Burn command should be reinstated for the creation of new Assets which can be used as altcoins, backed by XCP as CryptoFinanceUK suggested in his thread, “Back Assets & Counterparty Risk,” but without the escrow element he originally suggested. XCP doesn’t even have to be burned for Asset issuance, we can use BTC again or any other Asset to Burn for the new Asset.
This will virtually eliminate premined altcoin scams through the creation of new coins that can be backed by other Assets, BTC, or XCP. Coins will no longer have to be mined and electricity will no longer be wasted, as they are initially distributed through a fair Burn process that gives everyone the chance to participate in the inception of new coins they actually believe in. Remaining coins can be distributed in a completely transparent, trustless, and automated manner with an issuance method that will be clearly detailed and available for all to see, through configurations which can be added to the Burn command, by the issuer.
New coins can then be protected from centralized exchanges and only traded through Counterparty, finally ridding us of the counterparty risk associated with such exchanges and also insulating altcoins created on Counterparty, from fiat daytraders that can devalue the price of such altcoins through speculative trading.
Once this method of altcoin creation is possible, Counterparty will continue to grow and XCP will keep increasing in value. Not only would this allow people who are not technically proficient, to create new altcoins through Counterparty, but it will increase the value of XCP itself as more people adopt this platform for altcoin creation through the Burn process. Eventually, there will be a future where people will use Counterparty to send and receive hundreds of different altcoins, all through the Bitcoin blockchain.
Interesting, but I don’t think it will work by burning assets such BTC. For example, XCP is not really backed by burning BTC. It’s just backed by the belief in the project, the devs and everyone who supported it.
On the other hand, it could work in some ways if you mean like burning into an XCP escrowed asset like CryptoFinanceUK’s escrowed asset idea.
For example, let’s say you escrow 1000 XCP to create an alt with 1000000 GREENCOIN. The new GREENCOIN would then just be backed by any business/user that accepts it. Now if GREENCOIN owners can un-burn their GREENCOIN to get back XCP, then you can say that it’s also backed by the escrowed XCP.
I agree that burning an asset to create a token isn’t the same as backing a token with an asset.
When I was taking a quick look at the code, it struck me that modifying Counterparty to escrow XCP “inside” an asset didn’t look much different than the escrowing that currently works with bets (if I understood the code correctly). I don’t think it’d be terribly hard to do.
I considered suggesting this to the devs, but then I thought, all you’d really have created is a kind of XCP wrapper and I couldn’t see how this added any more value than just sending the XCP itself, so I dropped the idea.
Can anyone think of a decent use case for this?
That was a huge Freudian slip. What I meant by "backing" a new Asset with XCP, is to create a new Asset through BTC Burn so that it starts out with an inherent value like XCP originally did. It would not be a reversible process like the XCP escrow idea suggested.
Maybe I am misunderstanding the use case, but you don’t need the Burn command on Counterparty to do this activity today. Just go ahead and issue your tokens on Counterparty and send those tokens to all BTC addresses that sends 1 BTC or any other structured value to any unspendable BTC output address. You get to create assets. You get to burn them and you get to reward the burning with the distribution of the XCP token. Was that your intent?
[quote author=BitcoinTangibleTrust link=topic=207.msg1664#msg1664 date=1396131705]
Maybe I am misunderstanding the use case, but you don’t need the Burn command on Counterparty to do this activity today. Just go ahead and issue your tokens on Counterparty and send those tokens to all BTC addresses that sends 1 BTC or any other structured value to any unspendable BTC output address. You get to create assets. You get to burn them and you get to reward the burning with the distribution of the XCP token. Was that your intent?
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This is my my intent, but manually sending Assets to hundreds or possibly thousands of addresses is tedious. What I’m proposing is letting users modify the Burn command so Assetts can be issued automatically.