Frequently Asked Questions.
Here are some of the questions about the PacCoin coin swap coming March 1st, 2018
The ratio for redemption will be 1000:1 or 1000 current PacCoins for 1 new PacCoin on the new blockchain & code fork.
Why the PAC hard-fork and coin redemption on March 1st?
PAC was a great start to a coin that made it to today. There are numerous design flaws in the code that will prevent PAC from scaling to be a major digital asset like the others. The coin if left on it’s current path would have inflated itself into a non-sustainable state. Way to many coins creates and a short block-time will create ever increasing traffic that would have killed the PAC network over time. This as well as several other issues – see other FAQ’s.
Will there be an early redemption?
Yes, there will be an early redemption on February 1st, 2018 for masternode purchases. This will allow us to secure the network for the launch on March 1st, 2018. Masternodes will need 2 million new PAC or 2 billion old PAC staked for viable network operation. Early redeemers will have the benefit of getting access to 40% block creation earlier – so more PAC. This is in lieu of the POS that exists today for PacCoin.
Will I lose any PacCoins and money with the fork?
Technically yes – but overall value no. You will gain value! You are trading a broken older coin for a new coin. Think of a pie – your coins today represent a percentage of the pie today. It will represent the exact same value after the fork on March 1st. Your pie slice will be the same size – except the number of coins will now be a new and improved PAC with faster transaction times and a better foundation to scale with the Top 10 coins like Bitcoin, Litecoin & DASH.
How was the PAC 1000:1 ratio determined?
The original PacCoin was designed with some major flaws. Since every node or wallet has this design flaw it makes it almost impossible to get all PacCoin users to change their code to fix the problem. The biggest problem is that PAC was designed to have 100 trillion coins. This makes it almost impossible for PAC to trade properly against anything of value. For example PAC cannot trade against Bitcoin at all today – as it isn’t even close to one satoshi – or .00000001 BTC.
What happens with the people that don't know about the swap?
Well, a few thoughts on this. We will allow people to redeem their old PAC for new PAC for 3 months after the redemption at a decreased ratio of 2000:1 month two and 3000:1 month three. We will have an ongoing redemption for up to a year after the closing date at 20,000:1. This will ensure that they get something instead of nothing for their coins. We expect PAC to increase even more than this so we feel this is a more than fair approach. We will maintain a few nodes on the old PAC chain to fulfill these redemptions to a published wallet. There will be rules for this after month three to ensure their is no abuse of this program.
Will the new PAC POS like old PAC?
The current PAC was designed to POS and again, the design is buggy and not proper. The current design allows big wallets to out earn the smaller wallets. The rich get richer & the poor get poorer! The new coin is a two-tier system, where Masternodes replace the current POS block creation process with shared block creation across all the masternodes equally. This ensures an even distribution of new coins across the network – and prevents “oligarchical” activity.
What is a PAC Masternode?
Masternodes are just like other PAC nodes running the same wallet software on the same blockchain to provide extra transaction based services to the network. These services include:
- PACsend which is an anonymization for increased privacy of transactions
- InstantPAC transactions
- Provides a voting system for decentralized governance
- A decentralized budgeting system
- Immutable proposal and voting systems.
For providing these services, masternodes are also paid a certain percentage of rewards for each block. This can serve as a passive income to the masternode owners minus their operational costs.