user9901: When starting an altcoin from scratch, how would distributing premined coins to a certain community affect the currency?

user4748: I'd say a fair distribution of premined coins has these benefits:

Gives the coin visibility over the 80+ altcoins out there, some with competing target markets (e.g. PesetaCoin vs SpainCoin - latter is premined and will be distributed)
Creates interest in it (mostly from the group that can potentially receive them)
A lot of people end up with at least some of those coins, increasing the possibilities some will use such coins to pay for stuff (kick-starting an economy using this coin) rather than simply cashing them right away
Even for those who do cash the coins right away, it's literally money fallen from the sky, created ex-nihilo. Just like fiat, but directly benefiting them.


user12447: pro's:

dev gets paid
some bounties and coin distribution can occur

con's:

depending on the size of the premine, developer could get an unreasonably large amount of coins for what is essentially a copy and paste job.
negative preconceived opinions about the coin because it is premined.
dev could be a scammer and dump all the coins, rapidly deflating the price(ie, a pump and dump)
those who claim the bounties may run with the money and pull the services at a moments notice once the bounty is paid.
coin may be subject to 51% attacks, difficulty stranding attacks, and other undocumented forking attacks from anti-premine "activists", who may be the vocal minority but often have the majority of hash on any given coin.
the coin will be under constant attack from trolls


9901: <p>When starting an altcoin from scratch, how would distributing premined coins to a certain community affect the currency?</p>
 4748: <p>I'd say a fair distribution of premined coins has these benefits:</p>

<ul>
<li>Gives the coin visibility over the 80+ altcoins out there, some with competing target markets (e.g. PesetaCoin vs SpainCoin - latter is premined and will be distributed)</li>
<li>Creates interest in it (mostly from the group that can potentially receive them)</li>
<li>A lot of people end up with at least some of those coins, increasing the possibilities some will use such coins to pay for stuff (kick-starting an economy using this coin) rather than simply cashing them right away</li>
<li>Even for those who do cash the coins right away, it's literally money fallen from the sky, created ex-nihilo. Just like fiat, but directly benefiting them.</li>
</ul>
 12447: <p>pro's:</p>

<ul>
<li>dev gets paid</li>
<li>some bounties and coin distribution can occur</li>
</ul>

<p>con's:</p>

<ul>
<li>depending on the size of the premine, developer could get an unreasonably large amount of coins for what is essentially a copy and paste job.</li>
<li>negative preconceived opinions about the coin because it is premined.</li>
<li>dev could be a scammer and dump all the coins, rapidly deflating the price(ie, a pump and dump)</li>
<li>those who claim the bounties may run with the money and pull the services at a moments notice once the bounty is paid.</li>
<li>coin may be subject to 51% attacks, difficulty stranding attacks, and other undocumented forking attacks from anti-premine "activists", who may be the vocal minority but often have the majority of hash on any given coin.</li>
<li>the coin will be under constant attack from trolls</li>
</ul>
