With MtGox’s demise and call for bankruptcy protection, things aren’t looking so good for MtGox users who have lost their bitcoins. Legal processing could take years before a concise outcome is heard. Thus, Humint and the Mastercoin Foundation are proposing Goxcoin as a solution for this dilemma. Adam Levine of “Let’s Talk Bitcoin” and Humint said to Coinreport,
“Goxcoin is the lemonade we think should be made from the lemon that is MtGox.”
What is Goxcoin?
Goxcoin is a proposal designed to substitute MtGox’s lost bitcoins. According to the Humint website, Goxcoin is a “User Created Asset, issued using the Mastercoin Protocol and given to Mt.Gox customers to denote their Mt.Gox BTC account balance at the time the exchange went offline.”
This basically means that for each Bitcoin you’ve lost through MtGox, you get one Goxcoin in return. In addition to this, Goxcoins will be transferable, but limited in supply since there will be only one issuance of the coins. Another interesting feature of Goxcoins is:
“Using an on-blockchain token allows for trackable balances on a public ledger, enabling the pro-rata distribution of any BTC that may be recovered through forensic investigation, law enforcement, and/or the liquidation of Mt.Gox as a corporate entity.”
This basically means that owners of Goxcoin will get dividends or a certain percent of money based on the amount of bitcoins that are recovered in the coming years. In addition to this, users of Goxcoin can trade them with each other or buy more if they believe that the Bitcoin recovery for MtGox coins is doing well.
Why Accept Goxcoin?
According to the Humint website, Goxcoin is a good investment because it “could truly become the great lost treasure of the Bitcoin age.” In addition to this, Goxcoin users will receive dividends that will be provided by the Mastercoin protocol. To make things even more concise, Humint is,
“Working to establish a “Proof of Goxxed” protocol by which any holder of a verified claim against Mt.Gox can cause the creation of Goxcoins in the amount of their verified claim denominated in Bitcoin.”
To do this successfully, Humint is working with mtgoxrecovery.com to attain claims that will be verified through Japanese legal processing.
How Will Goxcoin Work?
In order to make this entire concept possible, a couple of things will be needed:
- Obtain Gox’s account database.
- Recover Gox account balances and verify to ensure that all malleable transaction “double withdrawals” are accounted for.
- Issue new User Created Asset using the Master Protocol.
- Create page where said asset can be verifiably claimed by Gox customers.
- A Mastercoin wallet that supports trading in the GOX/BTC pair.
One of the key things that Goxcoin needs is MtGox’s cooperation because without it, this project will be very difficult to do. So, Mark Karpeles need to be onboard with this idea before it can become anything bigger.
Goxcoin is an interesting concept that might just be the solution MtGox users were looking for. Of course, cooperation from MtGox will be needed to put the plan into action. However, it is a good incentive to get people to look for a way to get at least some portion of their money back.
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