d5000 edited this page Apr 26, 2018 · 12 revisions

Welcome to the Slimcoin wiki!

Slimcoin is a energy-saving, fast-confirming and novel cryptocurrency. It is the first cryptocurrency using Proof of Burn for block generation and currency distribution. Another highlight is the DCrypt algorithm, which is one of the most difficult algorithms to implement in an ASIC and suitable for CPU and GPU mining.

This wiki complements the Slimcoin project web site and contains user documentation and other information about the currency.

Download

The current stable version is v0.5. Download the distinct versions at the Releases page. Or checkout the master branch of the Slimcoin Github repo for bleeding-edge code.

A legacy version, v0.3.2, still works but already misses some newer features. For Windows, download it here. For Linux, you should compile the source code (Instructions). For productive use, download the newest code of the v0.3.2 branch.

Developers

Development in Slimcoin is open to everyone. If you want to participate with development, you can read the Developer's Page.

You can also browse the Proposals if you want to fulfill a wish of a community member or simply need inspiration.

Documentation

Transaction format - The Slimcoin transaction format is similar but a little bit different from Bitcoin's.

What is Proof of Burn?

Proof of burn is an energy-saving, long-term-investment-rewarding descentralized consensus mechanism proposed by Iain Stewart as early as 2012. Slimcoin is the first cryptocurrency to implement it as a block generation method and was created in May 2014 by an pseudonymous developer (he used the name "slimcoin" on Bitcointalk, "John Smith" on Github and "P4Titan" on Reddit).

How does Proof of Burn work?

In Proof of Burn, you transfer coins to a unspendable address in exchange for a probability to find Proof-of-Burn blocks and get block rewards regularly.

The more coins you destroy by burning, the higher the chances you find Proof-of-Burn blocks. It's not necessary to burn all the coins together: your "score" (probability to find a block) will also rise when you burn coins periodically.

You can describe Proof of burn as virtual mining: For every coin you burn, you "buy" a virtual miner that has a virtual hashrate correlated to the cost of the burnt coins.

This "score" is called Effective Burnt Coins. To avoid a disproportionate benefit for early adopters, after a participant burns coins, its Effective Burnt Coins value is lowered each block. It starts with 100% of the amount of coins burnt and decays until reaching zero in about a year. That means that you will have a long time to recover your destroyed coins via block rewards.

Why Proof of Burn?

At a first glance, Proof of Burn can sound a bit crazy. But the concept has advantages over both Proof of Work and Proof of Stake. It can be a way to reach one of the most challenging goals of a usable crypto-currency: relative value stability.

This is mainly because it rewards long-time investments more than any other known algorithm (at the time of writing).

Short-time investors, e.g. those who want to participate in a pump-and-dump game, are largely responsible for the high volatily found in Bitcoin and other cryptocurrencies. This class of investors cannot benefit from the Proof of Burn algorithm. The PoB reward mechanism creates a steady, but comparatively slow income for investors. An investor can perfectly make profit burning Slimcoins, but he won't get his coins back immediately but after, at least, some weeks. One can say that in these weeks he is "backing" the value, because the burnt coins can't be sold (they are effectively removed from supply) and so they don't create selling pressure.

In contrast, with PoW cryptocurrencies short-term oriented miners often create artificial demand and - later - supply spikes, and in "high reward PoS cryptocurrencies" large stakeholders can get considerable amounts of currency units in a short time and sell them at the exchanges for fast profits. These trading strategies are not possible with Proof of Burn currencies.

There are possibly other effects that can stabilize value/price. For more information, read: The Magic of Proof of Burn.

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