CAIx announces Price Stability Program, Masternodes, and the CAIx Foundation.

Yesterday, the developers behind CAIx (formerly Caishen) announced several developments on their BTCtalk thread.

The announcement came in three parts:

Part I: CAIx Foundation
The foundation will consist of investors, community members, and holders of CAIx but they must meet some criteria for involvement. Initially 12 members will be chosen to act as a supervisory committee overseeing various projects for CAIx and to vote on actions the coin should take.  The foundation will also serve as the link between the CAIx team and the community, which allows the team to focus on the coin and lets the foundation support the needs of the community.

Part II: CAIx Masternodes
Masternodes for CAIx is a tiered program designed to benefit people with large stakes of CAIx by offering them a monthly dividend to maintain their stake. The first tier Masternode requires 20,000 CAIx, the second tier 15,000, the third tier 10,000, and the fourth tier is 5,000. After consideration by the developers, a fifth tier was added and requires only 2,000 CAIx. The purpose of this program is to reward stakeholders by offering incentives in the form of dividends to keep their Masternodes operational.

Part III: CAIx Price Stability Program (PSP)
The CAIx Price Stability Program is perhaps the first of its kind to counter the effects of PoS coins emerging on the marketplace. Consider the following plan for CAIx: A CAIx mining farm acquires three 300mh/s KnC titan miners. As the mining difficulty will increase when ASIC’s are released, let us say for the sake of this example, the average return is .0008btc per mh/s after electricity costs. The KnC mining farm will generate an average of .72 BTC per day or 21.9 BTC per month of revenue that will be used to remove CAIx coins from circulation.

The total coin supply of CAIx is approximately 1,600,000 coins. With the CAIx stake reward near 5% per year and an estimated 70% of the total coins staking, there will be 56,000 new coins created per year or roughly 4,665 new coins per month.

The figures presented in this example would create a CAIx equilibrium price of 469,452 Satoshi. At this price the amount of coins being bought and removed from circulation by the mining farm would match the amount of new coins introduced by staking, resulting in no net difference in coin supply.

When the price of CAIx falls under 469,452 Satoshi, more coins will be permanently removed from circulation by the mining farm revenue than are being created by staking rewards. When the price CAIx rises over 469,452 Satoshi, a larger number of coins would be created through staking rewards than would be removed by the mining farm’s revenue.

Full details of the Price Stability Program.

For more info, visit the official CAIx Website.