[quote=“David, post:16, topic:1737”]Rather than arbitrary variables, what about adding another quantitative variable?
Currently market cap is determined by MC = (total coins in existence) * (last traded price per coin).
This creates the opportunity for exploitation by heavily pre-mined coins that can set the built-in coin supply very high but only release a few coins.
My solution: what about creating something called “active market cap”, which would be calculated as AMC = (total coins in existence) * (last traded price per coin) * (average 30-day $ volume of coin / average 30-day $ volume of highest traded coin).
This would eliminate the arbitrary high rank of pre-mined coins because they usually have very low trading volume. It would also help reduce “flashes in the pan”, as a coin would need to have consistently high trading volume over the course of 30 days, rather than popping up quick from a big day.
In effect this formula would add an additional fractional variable to reduce the exploitation advantages of pre-mined coins by looking at a coins 30-day volume in dollars vs. Bitcoin’s 30-day volume in dollars.
And I say this fully aware that it would not help Peercoin much, as the fixed transaction fee discourages high volumes, but it is more fair overall for the market.
What do people think of this solution?[/quote]
Interesting idea. Though I don’t like the fact that it’s dependent on the highest volume coin, and new coins wouldn’t have a market cap until at least 30 days of trading.
I was proposing Market Cap = Price * Total Public Supply (i.e. excluding pre-mined coins). But the difficulty with that is in figuring out which coins are public and which coins aren’t. For example, with Auroracoin’s airdrop happening in a couple days, the 50% premine will supposedly be distributed out to the people of Iceland. At that point should more coins be added to the public supply? I’m not sure how hard it would be to figure out how many premined coins were released.
[quote=“ppcman, post:21, topic:1737”]I just noticed some ** (asterix’s) next to certain coins that were heavily pre-mined or not mineable.
I don’t think those were there before, were they?
That’s a start at least. If that is the only thing that will be changed (at least right now), I recommend this:
Auroracoin** $ 130,710,396 $ 12.30 10,628,226 AUR** $ 145,930
Instead of currently this:
Auroracoin $ 130,710,396 $ 12.30 10,628,226 AUR** $ 145,930
The black stars/asterix’s are easy to miss if you’re not looking for them in the first place. Bold red ones in two places will be harder to ignore or miss.
If that is done, I could live with the current coinmarketcap.com
What do you think?[/quote]
Yeah, I just added those asterisks yesterday. I will try make them stand out more, thanks.