Prohashing Mining Pool Forums

vaultminer wrote:

Steve Sokolowski wrote:
Unfortunately, proof-of-stake will never be able to be accomplished. Like the "meta-exchange" service, we could turn staking on tomorrow, but both of those services require a money transmission license. Money transmission licenses cost about $3m, which makes the idea unprofitable.

I am curious: why do you need a money transmission license for PoS? Can you tell me the rationale behind that?

A money transmitter is recursively defined as a company that receives and transmits money.

We don't accept deposits now, so we don't receive money. Creating a staking pool would require receiving money.

Steve,

I stake coins for people all the time... There is a way to stake without receiving or sending any coins. I cannot DM you or send a message. Send me one and give me a cut when you're a Bitmain Billionaire.

Travis

MitchellMint wrote:Steve,

I stake coins for people all the time... There is a way to stake without receiving or sending any coins. I cannot DM you or send a message. Send me one and give me a cut when you're a Bitmain Billionaire.

Travis

I thought that the way that coins are staked is that you accumulate them in a wallet and then, as the coins age, you have a greater chance of making money off them. Isn't that how it works?

Steve Sokolowski wrote:

MitchellMint wrote:Steve,

I stake coins for people all the time... There is a way to stake without receiving or sending any coins. I cannot DM you or send a message. Send me one and give me a cut when you're a Bitmain Billionaire.

Travis

I thought that the way that coins are staked is that you accumulate them in a wallet and then, as the coins age, you have a greater chance of making money off them. Isn't that how it works?

Yes, 100% correct. I have 10 stakers that received zero coins and have separate wallets, the stakes remain in my possession. Its the coolest concept ever, and I am the only one what does it so far. You have quite the client list and I would be willing to share my findings. Send me your email address and I will tell you how I do it.

MitchellMint wrote:

Steve Sokolowski wrote:

MitchellMint wrote:Steve,

I stake coins for people all the time... There is a way to stake without receiving or sending any coins. I cannot DM you or send a message. Send me one and give me a cut when you're a Bitmain Billionaire.

Travis

I thought that the way that coins are staked is that you accumulate them in a wallet and then, as the coins age, you have a greater chance of making money off them. Isn't that how it works?

Yes, 100% correct. I have 10 stakers that received zero coins and have separate wallets, the stakes remain in my possession. Its the coolest concept ever, and I am the only one what does it so far. You have quite the client list and I would be willing to share my findings. Send me your email address and I will tell you how I do it.

Hi Travis,

I appreciate your suggestion, but I'm not sure why I need to provide my E-Mail address.

I'm very interested in hearing how it's possible to start a staking pool without accepting deposits, but I don't see why it can't be posted here. Can't you just reply to this post so that we can continue the discussion here?

Thanks,

-Steve Sokolowski

Alright -

So if you have a staking coin wallet on your cellphone, your phone will die quickly if your phone is staking. Plus it might melt down especially if it is a Note 2. What we came up with on IRC chat a couple years ago is, just that idea, is to create an RPi at home that stakes your address that is on your cellphone. It was very easy to do since, both the Phone and the RPi are using the same privkey. This idea created an entire farm of Raspberry Pi's people rent from me to stake their wallet addresses.

What this means, people have to TRUST (Tried very hard to avoid the word) you with the PrivKey. You need to harden your security of your wallet.dat file and move your staker to an ONION but, you can have people send you their PrivKey through message from a coin of their choice.

There is no transaction... and you can program up a fee account for people to release funds to you. Its ridiculously easy.

Tip Jar trust:TUxds5ouxuVxq2TDgptc2Lw7EGxVHxesF8

Another concept is to add PoS coins to Prohashing as a payouts. You would have to mine your coins in order to stake. If you get enough coins you could make a shared MasterNode for somthing like PIVX.

Can we test using TrustPlus?

MitchellMint wrote:Another concept is to add PoS coins to Prohashing as a payouts. You would have to mine your coins in order to stake. If you get enough coins you could make a shared MasterNode for somthing like PIVX.

Can we test using TrustPlus?

Hmmm, this is an interesting idea.

This solution might get around the legal issue of accepting deposits from customers. If customers can mine proof of stake coins, and then leave them with us, we may not be a money transmitter because we aren't receiving money.

This is definitely worth asking the lawyer about.

Don't you have to send AND receive money to have to have the transmitter license?

When does the pool send out money? Do you sell coins into the bank/paypal for customers? Or does the payout option of coinbase make sending out?
Last I checked the pool pays us in crypto, and I do not think your IRS classifies crypto as a MONEY but as some type of PROPERTY. You have to pay income tax on the equal value of that item you receive as payment, but if the payment isnt in MONEY that you can pay taxes with, why do you need a money transmitter anything? You are transferring data/token...not real $$$$, I'm not sure it classifies as 'MONEY TRANSMITTING'.

CSZiggy wrote:Don't you have to send AND receive money to have to have the transmitter license?

When does the pool send out money? Do you sell coins into the bank/paypal for customers? Or does the payout option of coinbase make sending out?
Last I checked the pool pays us in crypto, and I do not think your IRS classifies crypto as a MONEY but as some type of PROPERTY. You have to pay income tax on the equal value of that item you receive as payment, but if the payment isnt in MONEY that you can pay taxes with, why do you need a money transmitter anything? You are transferring data/token...not real $$$$, I'm not sure it classifies as 'MONEY TRANSMITTING'.

Agreed, the IRS isn't clear but the people in jail for not having a license is clear too. I literally don't allow anyone to invest in our Corporation until they open a bank account where we bank. The rules are so stingy and the banks are under alot of pressure from their software providers to block crypto activities. My monthly IRS agent wants to know how much crypto I mine, and when Im writing check. I hate spending Crypto to pay for mining taxes and be taxed on selling Crypto from places like Coinbase. Plus the regular taxes. Ill quit whining - but yah, pool staking would be awesome and Pooled Master Nodes would be Exceptional!