Introducing Matryoshka Multicoins
Coins-Within-Coins
Matryoshka is a 10-series token set made with mineable smart contracts (see my article on synthetic masternodes for more on how these work). As each token series is completely sold out the token sale moves on to a subsequent series. A portion of each series is retained for the purpose of a master mining at the point where all 10 series are sold out and the contents of the master mine are all delivered to the last series token contract.
The result is a system much like that of Russian Matryoshka dolls, wherein each token delivers backwards to all the subsequent tokens except for the last token in the series, which is “delivered forward” from point of purchase all the retained share of underlying attributed to the master mine plus the next Matryoshka token’s series A supply that is allocated to them in entirety from the subsequent set.
This series-set replication effect allows the Matryoshka coin to continue uninterrupted endlessly. Thus, in Series J, token holders will find value already delivered to them in both the form of “carried forward” master-mined tokens from the retained token supply in the current token set, plus the “carried over” series A token supply.
Sets need not be varied and can be homogenous and the economics of the model will work perfectly, although if growing in popularity, subsequent sets may be expanded as illustrated below. However, if so carried out then the size of the subsequent set should be sustainable thereafter as moving back a size is not an easy option unless cryptocurrency prices have gone up dramatically.
To purchase the current series, players send qualifying payments to the previous series smart contract. The Blockchain will fill in the price data per coin at the point of purchase which can either be sent in an automated fashion or via scheduled deliveries (e.g. at the end of the week).
Matryoshka coins are not themselves designed to be traded so it is essential to wrap them in an external coin wrapper. This coin wrapper is called the “multicoin”. Essentially the multicoin is a single unit of value that equates all Matryoshka series’ coins according to the same price — that being its core utility, which is coin supply — despite what they were purchased for. The Matryoshka multicoin distributes back the coins entered into it on an equally-distributed basis.
Whenever a series changes, the new series coin will be distributed into in part all the previous series coin smart contracts, according to such contracts’ ratios relative to the running total.
For example, series B coin will be 33.3% distributed into series A coin smart contract while series C coin will be 33.3% distributed into series B coin smart contract and 16.65% distributed into series A coin smart contract (thus leaving only 50% of the coin for sale by way of a purchaser depositing qualifying tokens into the previous series, series B, smart contract). This will stimulate large demand for old series contracts. As a result, there are likely to be many multicoins removed from trading during the switch-over of a Matryoshka series round. Coins are sold according to the formula:
([supply for sale * price / cents] + [retained premium] + [surplus premium]) / supply sold
