Cryptonite was released without any sort of pre-mine or ICO because we wanted people to trust the coin and the technology behind it instead of seeing it as another pump-n-dump. However it has become clear that we require a source of funding to ensure we can afford exchange listing costs, marketing costs, and development costs.

Therefore we have decided that some sort of development fund needs to be established but we want input from the community so we know how to best approach the problem. Any solution is going to involve a hard fork, the two solutions we believe will work most effectively are the following, along with their pros and cons.

Solution #1
A secondary block reward which sends a small amount of XCN to the fund address every block

– Provides a consistent and reliable source of funding to cover our costs
– Should be fairly easy to implement and ensure the code is secure

– Requires us to wait some period of time to accumulate XCN before we have enough to spend
– Older clients will stop working due to new protocol rules and wont work until updated

Solution #2
A one-shot transaction which sends a large amount of XCN to the dev fund address

– Gives us a large supply of XCN to spend instantly on important things
– Older clients will still be able to sync once the transaction is old enough
(since only txn’s from the newest 10K blocks are required with fresh sync)

– Seems like a less clean solution than #1 and will probably be harder to implement