Issue decentralized securities using Peershare

Projects
41

dont know what im talking about completely, but as i read it i understand IHCC wants to create blocks without dividends:

If there were a way to manage the shares and encourage block mining without a dividend payment

for companies that do not pay out dividends, , i dont understand where the suggestion for minting dividend comes from exactly

Your suggestion to reward dividends only when a block is found

my solution would be to pay out dividend with 0 value, if the company does not pay out dividends

(just my 0.000002 cents)

42

I managed to translate the concept of peershare or PPS and lots of meaning ful threads into Chinese:
PPC的杀手级应用：Peershare项目（皮尔股 简称PPS）
http://8btc.com/thread-2165-1-1.html
PPS皮尔股项目开发计划(2013年12月更新)
http://8btc.com/thread-2170-1-1.html
PPS皮尔股的常见问题
http://8btc.com/thread-2173-1-1.html

43

Great project, keep up the work!

I am not sure if I understood how the connection between ppc and pps works but if I am not mistaken, the link between a “share” and a “coin” can happen between any coin and any share, right? so,

  1. it should be easy to adjust the original parameters of ppc and eliminate transaction cost and interest etc. to keep it simple.

further I thought about this: there is actually no need for everyone to keep the blockchain if this is a matter. the share is anyway worthless if the company does not pay any dividend, so the private keys may be administered by the issuing company itself. i can image that a fork of the peershare comes with an “online wallet system” per default that handles the IPO as well as stock trades and backing up/storing the private keys.

44

Whoa! That is great.

[quote=“redlee, post:42, topic:382”]I managed to translate the concept of peershare or PPS and lots of meaning ful threads into Chinese:
PPC的杀手级应用：Peershare项目（皮尔股 简称PPS）
http://8btc.com/thread-2165-1-1.html
PPS皮尔股项目开发计划(2013年12月更新)
http://8btc.com/thread-2170-1-1.html
PPS皮尔股的常见问题
http://8btc.com/thread-2173-1-1.html[/quote]

45

Going to chime in on some economics since that’s my specialty.

Quick preamble: I think you guys & the rest of the crypto community are changing the world. I’ve been thinking about this myself but think I went a little overboard. I think this is the next wave, personally.

The starting shares should be variable, linked to the current amount of shares issued and outstanding.
There should be some way for the corporation to “swap” the previously closely held shares into the crypto shares, so the corp itself should have an address, and it can create new shares by simply sending them.
There should be a system that governs treasury shares after a buyback, and there should be some mechanism for canceling treasury shares.
“Shareholders” (non-corp addresses) should be able to have some mechanism to identify their cryptocurrency accounts for dividend payments, and it should be known what cryptocurrency addresses are owned by the corp for “public record” of payment.

Even if there’s no internal trading system like my question says, still, to have a way for a company to have shares be transmitted would be absolutely killer.

Now for some critiques (sorry):
There should be no rewards, only fees. If there will be rewards, they need to be extremely small as percentage annually. 1% is a massive cost to a company and could seriously hurt the price of the shares. If you think about it this way, the average company returns about 10% per year, so 10% of that return would be eaten by rewards.
PoS will probably always be violated by small companies since more than 50% is usually held by one party or combined party, so PoW with minimum or low difficulty would be necessary to beef up security a little bit. It might be wise to find another Proof of to thwart the continual PoS violations.
The supply should be exclusively “controlled” by the issuer, the company. They should be able to issue to whoever whenever, and others should be able to transfer back to the corp presumably in some sort of buyback or swap.

Just my 2c. Hope it helps. I applaud you immensely for taking this on and am rooting for you!

46

Peershare is a template that specific companies can easily modify for their own needs. The number of starting shares can be altered by changing a single value in the source code.

[quote=“MoMoneyMonetarism, post:45, topic:382”]There should be some way for the corporation to “swap” the previously closely held shares into the crypto shares, so the corp itself should have an address, and it can create new shares by simply sending them.
There should be a system that governs treasury shares after a buyback, and there should be some mechanism for canceling treasury shares.[/quote]

In the original post under the heading “Hypothetical use case – Example of delisting from a centralized security exchange” I discuss how a company with shares can switch over to using Peershare. It address the concerns quoted above.

The system does not distinguish between corporate held addresses and publicly held addresses. All are simply shareholders. Dividend payments will go out to all shareholders, including those controlled by the company. Imagine a scenario where Peershare is used to facilitate revenue sharing. In that case the majority of revenue would need to go back to the company so that they could pay the costs of running their business. They might decide to keep 80% of revenues which they would accomplish by holding 80% of the shares.

The 1% annual stake reward could be changed to whatever each individual issuing company would like it to be, including 0%. However, 1% annual stake reward doesn’t equate to a 1% cost to the issuing company. So long as the proportion of the blocks mined by the company is equivalent to the proportion of shares they own, the percentage of shares controlled by the company will not change at all. A reward is necessary to provide an incentive for shareholders to create some degree of decentralization in transaction processing.

[quote=“MoMoneyMonetarism, post:45, topic:382”]PoS will probably always be violated by small companies since more than 50% is usually held by one party or combined party, so PoW with minimum or low difficulty would be necessary to beef up security a little bit. It might be wise to find another Proof of to thwart the continual PoS violations.
The supply should be exclusively “controlled” by the issuer, the company. They should be able to issue to whoever whenever, and others should be able to transfer back to the corp presumably in some sort of buyback or swap.[/quote]

While it is true that the issuing company will generally hold the majority of shares and can therefore change the protocol in any way they desire, this does not add much risk. The issuing company can also stop issuing dividends at any time, or take company funds and run. They are necessarily a trusted party with the capacity to defraud investors in many ways outside the context of a Peershare blockchain.

The fact that Peershare blockchains will generally be hard forked with the consent of only the issuing company means that we can expect Peershare blockchains to lead innovation in decentralized ledgers. Few changes have been made to Bitcoin since 2010 and consensus for changes is very difficult to reach. Peershare blockchains will continue to be dynamic as they age, receiving meaningful upgrades indefinitely. They may become real world testing grounds for innovative features that eventually find their way into the more decentralized ledgers such as Bitcoin and Peercoin precisely because they have been successfully proven in a Peershare implementation.

47

What is the status of Peershare now? No white paper or something? Only just some texts here?

48

I would love to know more about this.

49

A whitepaper was attached with the original post.

Over the last few weeks I have been working with an entrepreneur/investor to formulate a business model that revolves around an extension of Peershare. This will have the effect of monetizing the development of Peershare, as it is a necessary foundation for other development we need to do for the business venture. More details will be coming soon.

50

Jordan, some words of encouragement regarding Peershare:

You’re going to hear a lot of competing technologies, but that always happens when you’re 1/2 way in development. Glean good ideas from competing technologies and incorporate them.

But if something sounds more advanced than what you are building, it doesn’t matter. Some of those may fall flat on their face within a few months of their launch for one reason or another.

I think what you’re doing is exciting, keep us posted.

51

I, for one, am still very interested in Peershare! Keep fighting the good fight, and let the Community know when we can help you in any way.

52

I’ve been following protoshares/ bitshares quite a bit as well and they seem to have a pretty huge community of contributors, even if only a few are actually developing bitshares. I wonder if there is anything we can do to increase the support for Jordan - or if he even needs/wants it.

I’m not certain that what is happening with protoshares/bitshares is anything more than noise… but something to think about.

53

[quote=“hammyburger, post:52, topic:382”]I’ve been following protoshares/ bitshares quite a bit as well and they seem to have a pretty huge community of contributors, even if only a few are actually developing bitshares. I wonder if there is anything we can do to increase the support for Jordan - or if he even needs/wants it.

I’m not certain that what is happening with protoshares/bitshares is anything more than noise… but something to think about.[/quote]

I would like to invest my PPC to the Peershare project.

If there is a IPO or any other similar things going to happen, I could help to promote it in the Chinese digital-coin-community.

54

I appreciate the support expressed in recent comments for the Peershare project.

As I mentioned in my last post, I have been working hard to create detailed plans for an ambitious implementation and extension of Peershare in cooperation with an investor/entrepreneur. We have agreed to move forward to make our design a reality in the way I will describe below.

Peershare development funded with 200 BTC and 60.000 PPC

This venture will ultimately develop an extension of Peershare which will serve important unmet needs in the cryptoeconomy. The design of the system is complete similar to how the Peershare design is complete, although we are withholding details at this time in order to maintain our competitive advantage. What I would like to say about it is that because the core of the project is an extension and implementation of Peershare, our first step will be to fund the open source development of Peershare. Specifically, 200 Bitcoins and 60.000 Peercoins have been put up for the development of Peershare and our extension of it, which we hope to spend over the next 6 to 8 months or so. If the venture is successful, the investor is likely to invest a larger sum of money to scale the number of people working on the project further. Once the core software is running in the wild, we will sell shares (Peershares) of the venture to the public to provide even more funding at intervals.

While we are developing an extension of Peershare that will be competitive in nature, Peershare as a template for decentralized equities will remain a cooperative and open source effort. We hope that other ventures will choose to use Peershare for managing their equity. This project will cultivate consultants with the skills to assist other ventures with their specific implementation of Peershare. Our implementation will make Peershare a mature and stable platform that other ventures can have confidence depending upon.

Hiring C++ developers and QA experts

This means we are now anxious to find C++ developers and QA experts with a passion for blockchains to help us. Terms of compensation are negotiable and will be dependent upon the reputation that an individual has. We are open to either hourly rates (for people/personas/pseudonyms with developed reputations) or a bounty approach where payment is given for delivering software that meets certain specifications. Later other types of positions/roles will be opened. There will never be an office for this venture, so people in any part of the world can participate. Compensation will be paid through the Bitcoin network, while rates and bounties will be set in USD.

QA will begin with the task of testing Phase One development, which is complete. Developers will start with implementing Phases Two and Three. There are descriptions of these posted earlier in this thread, but updated and expanded specifications for these phases will be posted shortly to this thread. To acquire this dream job, start by sending me a Bitmessage at the address in my signature telling me why you are interested and qualified to participate.

Referrals

For those that want to move Peershare forward but don’t have C++ or QA skills, please point people who do have the skills to this opportunity. If you refer someone we pay bounties or consulting fees to we will pay you 10% of their total compensation in the first half of 2014.

Public investment

Finally, for those interested in investment: We are flattered by your confidence in us. Shares will be made available to the public when the software is mostly complete and running in the wild. Our reputation is very important to us and we opted not to take investment from the public (which in some cases is poorly informed) during the period of highest risk for this venture. We don’t want to take people’s money based on lofty promises about future accomplishments that would make us vulnerable to charges of being a scam. Additionally, because we are not yet saying much about what the extension of Peershare will do in order to maintain competitive advantage, we can’t market this right now.

55

Updated Phase Two specifications:

• Require that each Peershare transaction in the blockchain have a Peercoin public address attached to it. Use Bitcoin pull request #2738 (which allows 80 bytes of arbitrary data to be attached to a transaction) as the means of including the Peercoin address.
• Peercoin must be running in daemon mode in order to create a new Peershare address.
• When Peershare creates a new address, a new Peercoin address is also created. The address is added to the Peercoin wallet using the importprivkey and the public Peercoin address is added to the Peershare wallet.

Updated Phase Three specifications:

Qt (User Interface elements)

  1. Create a new parent level menu item “Peershare” with a submenu item “Distribute Dividends”.
  2. Create a pop up form which can be accessed by selecting Distribute Dividends from the Peershare menu. This form contains a text field labeled “Total number of Peercoins to distribute to shareholders”. It also has a button that says “Calculate Distribution Transactions”. When this button is clicked a progress bar will first be displayed followed by a table containing a row for every Peershare address with a balance. The displayed table will have the following columns: Peershare Address, Peershare Balance, Peercoin Address, Dividend Amount and Transaction Fee. Sort the table by Peershare Balance descending.
  3. Below this table will be a button reading “Pay Dividends From My PPC Wallet”
  4. When the Pay Dividends button is pressed the user is prompted for their Peercoin wallet password if there is one followed by an informational warning: “You are about to send X Peercoins from your wallet as dividends in the manner detailed in the Distribution table.” This form will have “Push Transactions” and “Cancel” buttons.

Daemon (Back end functionality)
To support the Calculate Distribution Transactions button the following will need to be done:

  1. Create a class called Distribution which contains Peershare Address, Peershare Balance, Peercoin Address, Dividend Amount, Transaction Fee and the raw content of a Peercoin Transaction that is to be pushed to the network (the length of this will be used to calculate the transaction fee). A collection of Distributions will be created to include every Peershare address with a balance. Three pieces of information will be gathered from such addresses: the public Peershare address, the Peershare balance and the associated Peercoin address. Next the minimum Transaction Fee allowed by the protocol should be calculated. It should be done in such a way so that if the transaction fee is changed in the future Peershare is unlikely to need revision to accomodate that. Finally, the Dividend amount is to be calculated according to this formula: (((Number of Peershares in this address) / (Total number of Peershares)) * (Total Dividend Distribution)) - Transaction Fee. If the calculated dividend is negative (in the case that the transaction fee is greater than this address’s share of the dividend distribution) eliminate that Peershare addess from the distribution list and distribute the tiny dividend owed to the eliminated address to all other addresses proportionately. This ensures that the exact total amount of Peercoins the user selects to distribute will in fact leave his wallet as distributions or transaction fees.
  2. When the Push Transactions button is clicked, the raw transaction stored in each Distribution instance is pushed to the Peercoin network.
56

Wow, this is great news! 200 bitcoins is a lot of money. I’m glad an investor saw the value in this project. Is that 60 ppc or 60,000? You used a period, so I’m not sure. Also, if we were to spread word about this on our social media accounts, what exactly would you want us to get across to people?

57

This is a huge bounty / donation to this project :slight_smile: looking through your outlines of Qt requirements I would like to have a go at the work and hopefully the daemon work to.

I will be in touch, but feel free to PM me

Fuzzybear

58

Echoing what Sentinelrv has said, we’d be very interested in promoting this heavily in our social media channels, if you’re comfortable with it. We can either link directly to your post here, or if you have other mediums coming soon (website perhaps?) we can hold off.

Very excited to see this come to life! This is one of the few crypto projects that I can actually see heavy demand in the real-world for, from small and medium-cap companies.

59

Very excited to see progress!

60

Sorry for the confusion. It’s sixty thousand PPC. That’s how it is written in lots of places of the world.

Here’s the super condensed message I would like communicated: C++ developers and QA experts are being hired to develop Peershare.