Cryptocurrency issuance - an uncontrolled process or a fine-tuned mechanism?

[Pyatka]

Hello all. In this article I would like to talk about the principles of cryptocurrency issuance, the problems and their solutions. Broadly speaking, cryptocurrency is meant to annihilate such a notion as centralized money emission, but is this really the case? In an ideal world of cryptocurrencies, the coins themselves are not issued by central banks, private companies or individuals, but by the community as a whole.



In bitcoin, for example, no one can simply draw a dozen other coins into their wallet at will. Bitcoin issuance is in the hands of millions of miners, as is transaction processing. The same goes for dozens of other cryptocurrencies, which operate on the principle of Proof of Work, or PoW for short. This consensus principle protects the network from abuse and creates a certain number of coins in each block, set in the very essence of a particular cryptocurrency.

In addition to the usual mining on computer hardware, there are alternative ways of achieving consensus, such as Proof of Stake or PoS. The essence is the same, but the probability to get a block with coins is higher for the one who has more coins in his possession. In addition to these two methods, there are other, different moments, but now it is necessary to touch the brand new way of "distribution of coins".



The Free TON project, which is an ideological successor of Pavel Durov's Telegram Open Network (but has nothing to do with it), has its own cryptocurrency called TON Crystal. The beauty of this coin is that you will not be able to mine it with powerful computer equipment. You will not get it if you have big amount of TON Crystal. Buying TON Crystal from other users is not worth considering in this case, because this action does not create new coins. They only change from hand to hand. How then the new coins of the project Free TON appear in the world?



This community has come up with a great way to implement the issuance. TON Crystal can get any user only if he actively participates in the life and development of the Free TON community. Coins are distributed according to the principle that the best contributor to the project and that will get more coins.

For example, in Free TON there are often different contests on creative, technical or social themes. If you are knowledgeable in programming, you can participate directly in the improvement of the project by getting a reward of TON Crystal. If you are an active member of the cryptocurrency community in general, have a wide audience, there will be a contest for you in this case too. Even if you sing well about Free TON, it will not go unnoticed and rewarded either.

In a word, TON Crystal is not produced every minute, as Ethereum does, where you also need to have a powerful computer equipment. This coin is issued in reasonable portions and only into the hands of those people who are interested not just in the speculative component.

A separate point is the cooperation of Free TON with a number of large and small projects. In particular, Free TON has for a long time been implemented in the bot Chatex in Telegram, which is a popular P2P platform. TON Crystal is distributed there in the form of cashback, so each user of this bot can make even a tiny contribution to the overall work. And there are dozens of such symbioses at the moment. Ordinary people and large organizations are trying to improve this project, to popularize it, for which they are rewarded with coins.



To summarize, we can say that in most cases a "big player" is responsible for issuing coins in this or that cryptocurrency, and ordinary users are admitted to this process indirectly. In some cases, like the Ripple coin in general, the issuance is at the will of private owners in the amount they want. But it is the issuance based on the principle of competitions, on cooperation with companies that is the future.