I practical question in light of the human condition. How is this system protected from the “Karpeles factor”.
For instance - from the example given:
Hypothetical use case: Example of IPO
CryptoSafe is a brand-new start up that intends to develop a hardware wallet for crypto-currencies. They decide to use Peershare to raise funds through an IPO and later distribute dividends to shareholders.
CryptoSafe acquires the open source Peershare code and create a new genesis block. The genesis block contains 100,000 shares of CryptoSafe. They secure the network by minting Proof of Stake blocks which will add approximately 1% to the total number of shares each year. They secure an agreement with Crypto-Trade and Cryptsy to facilitate exchange of CryptoSafe shares. They keep 60,000 shares as an owner’s stake and continue to secure the network with it. They transfer 20,000 shares to their Cryptsy account and 20,000 shares to their Crypto-Trade account. An IPO is put into motion by placing sell orders for these 40,000 shares at the IPO price, which is 20 Peercoins per share. Individuals may become shareholders by buying CryptoSafe shares at one of these exchanges and then withdrawing the shares from the exchange using their Peershare wallet. When all 40,000 shares are purchased, CryptoSafe will have 800,000 PPC to fund development of their hardware wallet.
(So the initiator sells the 800k PPC for BTC, anonymises them - does multiple circular and circuitous alt coin transactions across multiple exchanges - cashes out BTC on multiple exchanges - and anonymises himself in the Southern Philippines or even worse New Zealand - whats to stop this? Standard legal agreements/contracts linked to the Peershares agreement in the jurisdiction of the company Cryptosafe?)
Six months later CryptoSafe delivers their first product and receives their first revenue, which is the equivalent of 20,000 PPC. Fulfilling their promise to shareholders, the CFO opens the Dividend Distribution form from the Peershare client menu, then enters 20,000 PPC as the amount to distribute and selects CryptoSafe as the Peershare to distribute to. After confirmation, the client initiates Peercoin transactions to deliver a little less than 0.20 PPC for each of the approximately 100,500 CryptoSafe shares by examining the CryptoSafe blockchain. If a CryptoSafe address held 100 shares, then approximately 20 PPC would be sent to the Peercoin public address embedded as a property of that CryptoSafe address. The exact amount sent per share would be: (20,000 PPC - transaction fees) / total number of CryptoSafe shares.
(Whats to enforce “fulfilling their promise”. How do the Peershare holders know how much Cryposafe made - and what their entitlements are - and what happens if Cryposafe just decides to only distribute 2,000 PPC or nothing?)
So my question really is a nuts and bolts practical question. The initiative is great and I fully support as a PPC holder. Its just the link of all this back to the “real” world" and human weakness that concerns me. Maybe its an already taken that this is all bound by standard legal agreements - but I cant see that anywhere.
Thanks all for your great endeavours here.
Cheers - Usukan