Official Reponse to WHALEGATE
First, a summary of whalegate:
OH NOES, CHEAPETH HAS 25M PREMINE. I AM BITCOIN MAXI AND THINK PREMINE IS WORST THING SINCE LARGE 8MB BLOCK. GOKU AND GEO AREE BAD PEOPLE AND STEAL 45 MILLION DOLLARS OF FAKE MONEY FROM HARD WORKIN MINER. THEY ARE EVIL 1% PUMP DUMP SCUM
LOOK LOOK I FIND PREMINE ON GITHUB THEY THOUGHT THEY'D GET AWAY WITH HIDING IT IN PLAIN SIGHT U CANT DO PREMINE NO NO I AM BITCOIN MAXI EVEN THOUGH EXPENSIVE ETH HAVE PREMINE SATOSHI WOULD NEVER MAKE PREMINE TRUE SATOSHI KNOW PREMINE BAD
NOW CHEAPETH REPUTATION IS SELL OUT GEOHOT IS LOSER GOKU IS LOSER COIN ONLY FOR HARD WORKING MINER RABBLE RABBLE RABBLE RABBLE
I hope I correctly characterized the scandal.
From the beginning, we have had the following distribution strategy, copy and pasted off the cheapeth homepage.
The ETH supply as of the fork was ~114 million, so actually, we did the math slightly wrong, and 114/(114+25) = 82% of the cheapETH supply went to the existing ethereum holders. It's important to have existing ETH users be able to use cheapETH, as they are the best target market for cheapETH. Who else is more frustrated by slow transactions and expensive fees then them?
Here we'll give a bit more clarity on the plan for the 25M cheapETH currently held by the "cheap ethereum foundation"
If the crowdsale happens, subject to cheapETH becoming more serious and less party, 12M of the 25M will be sold for 1000 cTH for 1 ETH. The crowdsale will likely also include an L1 (expensive ETH) token that allows you to vote in the L2 (cheapETH) state election, thereby securing the value on L2 using L1. See the bridge spec for more details.
At the tentative crowdsale announcement date, the 12M for funding cheapETH development (other 10% mentioned above) will be locked in a 4 year vesting contract to trickle out over time to pay cheapETH devs. In addition to the cheapETH for devs, they will be paid salaries from the crowdsale fund. The crowdsale funds will also be used to purchase one Rolls Royce. We will deploy a voting contract with the crowdsale, so you can choose between a Ghost, Wraith, or Phantom.
Before we do the crowdsale, we will write the L1 -> L2 bridge needed to make the crowdsale happen, and you will be able to vet the code and technology. If the crowdsale succeeds, we will write the L2 -> L1 bridge, making cheapETH a full fledged L2 solution. Please note: the crowdsale, if it happens, will be announced at cheapeth.org, don't fall for scams.
The remaining 1M are YOLO DOLLARS, and will be used early on to throw around to raise excitement for cheapETH. We have already thrown around like 60k of them, to incentivize the adoption, mining, and use of cheapETH. Many more to come, this is party and we make it rain!!!
- 80% to existing ETH holders
- 10% in cheapETH crowdsale
- 10% held to fund maintaining and upgrading cheapETH (lock up before crowdsale)
Serious note of caution though, if you are a FUCKIN SPECULATOR, cheapETH is not for you. Please go the fuck away. This coin is not going to the moon, it is staying right here on earth. YOU WILL NOT MAKE MONEY ON CHEAPETH WITHOUT WORKING HARD YOURSELF TO PROVIDE L2 VALUE TO PEOPLE. CHEAPETH IS A TERRIBLE INVESTMENT, IT HAS CHEAP RIGHT IN THE NAME. YOU WILL NEVER MAKE MONEY HODLING CHEAPETH. IT IS A UTILITY TOKEN IN THE TRUEST SENSE OF THE IDEA.
Also, cheapETH is a party. If you take this stuff seriously, cheapETH is not for you. We are here to have a good time, and build something that hopefully saves people a lot of money on gas fees. We are also here to get a Rolls Royce, preferably with the license plate CHEAPETH.