[Liu Changyong] How can freecash develop healthily?

• Has Freecash changed?

In late February 2020, Freecash experienced its first sharp rise and fall since its birth, which was indeed a little early for a 50-day-old newborn.

In 50 days, Freecash's design, from the decentralized concept to parameter details, has proven to be very successful and effective.

Within 50 days, an open community with strong construction capabilities was spontaneously formed. Currently, 80% of browsers, 100% of mining pools, and almost all communities, exchanges, and information platforms come from the spontaneous construction and promotion of community members. The computing power once reached 550P, and the number of nodes reached 80.

If you feel confused by the price drop, you might as well ask yourself: Has the philosophy of Freecash changed? Has a major accident occurred in Freecash? Has the construction speed of Freecash slowed down?

No. I am unhappy only because of the price.

• Why are prices falling?

When there is no fundamental change in the asset itself, the main reason for the sharp drop in price is the sharp rise in price in the previous period. The root cause of the bear market is the bull market.

The rapid increase in prices has led to a sharp increase in the cost of buying and mining, and selling a small amount of coins can eat up a large amount of buying. Only a drop can change this situation, making it easier to buy and less motivated to sell.

In the case of over-the-counter transactions, liquidity is greatly limited. Viabtc launched Freecash, which made many miners come into contact with Freecash and agree with its concept. Li Kuang, a mining veteran who only met me once 6 years ago, took the initiative to find me and devote himself to the mining and construction of Freecash.

However, the rapid growth of computing power has pushed up costs and prices. In just 15 days, the over-the-counter price rose from around 1 yuan to more than 20 yuan, and the computing power cost was even higher. The poor trading channels and insufficient liquidity are also important reasons for the unilateral surge in the market.

As a mainstream exchange, Coinex has a good trading experience and market depth. The launch of Coinex has opened the floodgates of liquidity. The price drop is a normal release of market pressure, and the oversell is mainly due to emotional fluctuations.

• Why not pull the plate?

Why not pull the market? This may be the most common question. After all, pulling the market, controlling the market, and crashing the market are eternal topics in the cryptocurrency circle. To be more formal, it is called "market value management."

Market value management is an important task for project owners, which is equivalent to a company’s marketing strategy. However, Freecash is a decentralized ecosystem, which is fundamentally different from centralized project owners and companies.

The advantage of centralization is high decision-making efficiency. The management effect mainly depends on the financial strength, publicity ability and trading skills of the project party. The disadvantage is that the more decentralized it is, the more dispersed the currency holdings are, and the more difficult it is for the center to control. Market value management has to control liquidity by controlling consensus rules or even forcibly prohibiting transactions, thus moving towards centralization. The ending is often that either the project party is dragged to death or actively cuts leeks.

From 2018 to 2019, many blockchain projects that worked hard eventually died due to market value management. This is because the project owners became the rivals or even enemies of the entire market through market value management. Without the huge amount of funds to cash out early, failure is inevitable. However, the hard-working teams will not cash out huge amounts in the early stage. This paradox has made "the team is doing things" a joke.

The disadvantage of decentralization is the weakening of control ability, especially in the absence of coordination and communication. However, in the institutional design of Freecash, there are also fund rewards for spontaneous financial contributions from the community. Driven by the common concept and mature fund rewards after 3 months, it is easy for financial contributors to establish communication and coordination relationships. This eliminates the disadvantages of decentralization.

The advantage of decentralization is that experienced financial forces in the community will make contributions spontaneously. At present, all exchanges that have listed Freecash are responsible for the market value management of FCH on their own. From the perspective of resource mobilization, it is more efficient, safer and less costly than a single project party doing market value management on various exchanges.

Due to the rapid development, although I listed the "finance" contribution in the contribution section of BBS.cash, the financial ecology of Freecash has not yet started. The sharp rise and fall of prices has accelerated this process, and the financial construction ecology is taking shape.

A decentralized economic ecosystem requires a decentralized financial system. Freecash's system design will make decentralization more coordinated, efficient, and compatible with each other, without mutual harvesting.

• Contributions from Viabtc and Coinex

Viabtc and Coinex have made great contributions to the development of Freecash. They have officially introduced Freecash into the mainstream mining and trading markets. They cannot be blamed for the rise and fall of prices. They only provide platforms and should not be held responsible for market fluctuations.

ViaBTC and Coinex are the same operating entity. As a centralized exchange, Coinex has a huge capital pool. Therefore, this capital pool can be used to provide ViaBTC miners with a Coinex withdrawal service without maturity period.

This is a financial product that sells the 10-day time value of FCH and the risk of market volatility. The early users are miners, and the rewards are obtained through handling fees in the later stage. The cost is to transfer the risk of the 10-day maturity period to the exchange fund pool. Coinex needs additional risk management to balance risks and benefits.

Since the 10-day maturity period is the underlying consensus, in the crypto economy, just like the law of gravity in the material world, it cannot be eliminated, but can only be adjusted at a cost, just like various aircraft overcome gravity through power systems. ViaBTC and Coinex are exploring commercial products, not manipulating the market with any special power.

ViaBTC and Coinex are business organizations that are brave enough to explore. They dared to support the development of Freecash when it was just born, not only because they saw the advantages and development prospects of Freecash's governance mechanism, but also because of their courage to innovate. They are the backbone of the Freecash community and should be respected and supported.

• How to avoid sudden rise and fall

Strictly speaking, the entire cryptocurrency is still in its early stages, with few real applications, and its value is mainly based on long-term expectations based on the understanding of technology, economic models, and governance mechanisms. Expectations, as psychological factors, are easily affected by market sentiment.

Therefore, short-term price surges and plunges of cryptocurrency are the norm at this stage, and the beautiful Super Mario market is scary.

In the medium and long term, the key to achieving a steady increase in the price of Freecash lies in ecological construction, including framework design, underlying development, application development, public governance, social promotion, financial coordination, etc. This is a complex social and economic system, and no cryptocurrency has completed such a mature system.

The advantage of Freecash lies in summarizing the lessons learned from various currencies, especially the Satoshi Nakamoto framework over the years. From the beginning of framework design, it takes into account the needs of long-term development in all aspects and makes concise and effective institutional arrangements.

However, the formation of a mature socio-economic system requires time to realize, test and evolve. In the early stage, the risk of market volatility must be very large, which is not suitable for short-term speculation, but more suitable for medium- and long-term investment.

The best way to invest is to participate in the construction, allowing Freecash to mature faster and get returns yourself.

• How is Freecash developing?

At present, Freecash's governance framework is very successful and is being built very quickly, far exceeding my expectations.

When Freecash was launched, there were only the portal Freecash.org, the browser Freecash.info, the mining pool zenpool.io, and the offline wallet Sign.cash.

In just 50 days:

1) Portal: Freecash.VIP, fch123.cn added.

2) Browser: FCH.world, fchexplorer.cash, ifblock.io/fch, freecash.explorer.anomp.com

3) Mining pools: Anomp, FCH.Plus, ViaBTC, Hashpool, Rainpool

4) Exchanges: Coinex, Exu.com, Qbtc.com

5) Faucet, added: Freecash.vip

It is very rare to see such a fast development speed of decentralized cryptocurrency, which makes me full of confidence in the Freecash community.

• What other developments have there been recently?

Freecash's framework advantages and ecological power have just emerged, and more progress is being made.

Hoo.com will launch Freecash on the 21st.

ifwallet's FCH Android wallet has been released.

FCHwallet has also completed major development and will be launched soon.

SecretSign has completed the important second version upgrade development and is currently in testing, which will add many important functions.

These are just what I know. As before, there will always be some unexpected developments in the decentralized community, which is exciting to look forward to.

• Summary and Outlook

Judging from the overall pace of development, Freecash has made far more progress than expected. I had previously envisioned that Freecash would complete regular construction by early April, but in fact it has now been completed in excess. Freecash will enter the innovative construction phase ahead of schedule.

The main purpose of the regular construction phase is to make Freecash run normally like ordinary mainstream coins, and verify whether the underlying improvements made by Freecash on block time, maturity period, issuance rules, etc. are feasible. It has been proven to be successful, and Freecash can run like mainstream coins.

In the innovation and construction stage, we should focus on the development of the future crypto economy, build important infrastructure from crypto currency to crypto ecology, and make Freecash the underlying system of the future global crypto economy. The second version of the crypto signature provides the most basic functions, and the D-planet under development will have a systematic display.

If the second version of the cryptographic signature and D-planet are tested to be feasible, developers are welcome to copy and promote them. Freecash will enter a new era, which may very well be a new stage in the development of cryptocurrency.