Today I will explain the simple concept of Proof of Weak hands.
The coin P3D is an ERC20 token on the Ethereum network that introduces a different level of investment. The contract is open source and has been audited and been through a hackaton twice without failure. It is the updated version of the old proof of weak hands coin that got hacked. DO NOT confuse powh (dot) com(old scam site that got hacked) with the current powh (dot) io(new legit site) which I now will advocate for.
When someone buys the P3D token by interactng with the contract (sending Eth to it) the price of the token will increment with a small fixed amount(0.00000001 ETH) for each token that is purchased and whenever someone sells the token it will also decrement with the same small fixed amount. Just like regular altcoins, you could try to buy low and sell high. Tokens are minted for each buy and burned for each sell, P3D is both a inflationary and deflationary coin. There is no premine for the devs and they had to buy their own shares.
The important thing is that 10% of all buys and sells are returned back to all the holders of the P3D coin as dividend. This creates incentive to hold the coin for throughout violotility.
Suppose you buy in, two scenario's can happen:
- The prices rise with more people buying in and you can sell your P3D for a profit MEANWHILE getting dividend for every transaction made after you.
- The prices drop with more people selling than buying so selling now would result you in a loss BUT you would be getting dividends from every sell.
The moment you buy in you're hypothetically around ~20% loss since you paid 10% entrance fee and will have to pay another 10% exit fee. The longer you hold your coins however, the more dividends you earn and the lower this percentage starts to drop (excluded token price appreciation/depreciation).
Let me put that into perspective: With regular coins you would now be holding bags but with P3D all you have to do is hold your coins and wait for the dividends to stock pile until you have made your initial investment back or even more. The coin is not even out a month and we are well over 1000ETH in the contract, violatility is pretty sure to remain.
There is also the added concept of referrals. Whenever someone buys with via your masternode(that you currently can obtain by holding 4 or P3D coins) you would get 3% of their investment as direct dividends. That 3% is deducted from his 10% that goes to the overall holders.
Your profit in "normal" coins is dictated by supply and demand.
Your profid in P3D is dictated by supply and demand, referrals and volume. 3D investing.
The concept relies on you, the token holder, to have strong hands and hodl through all the buys and sells to accumulate dividends while the weak hands sell for whatever reason.
Now you're asking, how is that sustainable? What if everyone sold? If everyone sold you would get the remaining ETH in the contract. But what if there is not more ETH in the contract after everyone sold? That is actually not possible since you would still hold your coins. No one can sell their tokens for your ETH as prices drop and the last person selling before you would leave 10% of his stake behind netting you atleast something in the worst case scenario (eventhough not as much as you probably would've wanted).
Access to buying and selling is currently made possible in three ways:
- The provided 3D exchange on their website
- Backup websites hosted on github (good luck bringing those down)
- MEW or any other Ethereum connected interface in which you can create transactions
In general Proof of Weak Hands is a funny, exciting and community driven concept that generates profit in a 3D manner.
Buy P3D coins here: powh.de
Edit: Specified token price calculation as of per token and added perspective in how you lose money.