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In the previous article we discussed CoinJanitor and their vision to clean up the crypto economy by taking over the projects and burning dead coins in order to promote investor confidence in cryptocurrency.

CoinJanitor will be using different approaches to effectively buy out and destroy these failed projects. These intended methods will benefit the holders of dead coins, and the crypto space as well.

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The CoinJanitor Burning Process

CoinJanitor aims to start by targeting the older series of cryptos that are now defunct. CoinJanitor will be focusing on PoW(Proof of Work) coins rather than PoS(Proof of Stake). This is because with Proof of Stake coins the power of opinion lies with the highest holders which sometimes may have a higher stake than the project creators. Also, most PoW coins that are now regarded as deadcoins have already effectively run their course. PoW is also less community-centered than Proof of Stake.

Each project will be assessed according to the well prepared CoinJanitor criteria to determine the optimal implementation of this process and executed by CoinJanitor developers in conjunction with the original project owners.

CoinJanitor will also have a dynamic library which will actively absorb codes from projects and evolve to be more effective in executing the absorption.

The Modus operandi will be something like the following;

1. Get GitHub access from the Coin owner.
2. Remove other people's ability to commit (Remove all users except CoinJanitor developers from the GitHub committers).
3. Check and update the ledger CoinJanitor holds, or otherwise collect snapshots of the blockchain from peers.
4. CoinJanitor gets control of the consensus mechanism to be the only one who is able to mine.
5. Point mining power if needed to allow transfers (in case of PoW), and in some cases also decrease the complexity of mining.
6. Mint all remaining coins so no more coins can be mined, while updating the complexity andv rewarding rules.
7. Appeal to public for tokens.
8. Begin manual swaps.
9. Close first swap window.
10. Burn all tokens, i.e. transfer all tokens to 0x0 address.
11. Continue taking coins ad hoc verifying against snapshots.

Source

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CoinJanitor aims to function as an economically autonomous project. It will use the funds generated during the ICO and other investments to achieve the different steps in it's game plan. CoinJanitor promises a transparent and community-voted operation. Funds will be managed in a disciplined and effective manner in order to achieve the goal of restoring sanctity to the crypto space. CoinJanitor envisions that there will be different and unexpected situations met in the course of carrying out their proposed operations.

Now let us look at a few scenarios and how CoinJanitor will approach them.

The ideal scenario for CoinJanitor is locating a dead coin with an active and reasonable community that is willing to move on. In this case, CoinJanitor can easily approach the coin's creators and initiate a smooth transition of authority. This takeover will be in stages of the methodology we looked at above. CoinJanitor expects to start off with some projects that will be agreeable to a quick buy-out.

CoinJanitor recognizes that a more likely scenario to be met is the split community, in which part of the coin holders agree to a buy-out while the other part of the community refuses. CoinJanitor will attempt to be mediators and enlighten the unwilling side about the merits of the takeover as well as the disadvantages of them holding the dead coins such as it's negative influence on the crypto economy.

CoinJanitor will not employ hostile methods neither will they coerce the unwilling side with bigger incentives. Communities that refuse or are hesitant to agree to CoinJanitors proposal will potentially lose out on favorable offers and will most likely face less favorable rates at the next buy-out negotiations.

Another scenario that could also likely play out is when the coin creators/team are willing to allow CoinJanitor takeover but the community of the coin users/holders are not willing to part ways with the project. Off course if the coin owners are in support of a buy out, they will hand over the Github credentials to CoinJanitor.

Technically, with access to the project’s GitHub and the ability to deploy changes to the coin's network, CoinJanitor will be able to shut down the dead or failed coin without community consensus. This is not an ideal business choice but tough decisions need to be made sometimes. CoinJanitor however does not wish to impose its will and will likely move on to another project if the community refuses to see reason. It is hoped that the community would see CoinJanitors offer as a helping hand out of an otherwise unfavorable end being stuck with useless coins.

Conclusion

From my personal research of CoinJanitor, it seems to be a viable project. It is however to early to say just how far they will go. Many crypto communities have grown fond of their coins and some prefer sentimental value with the hope(albeit almost impossible) that one day their dead coins may resurrect. I am encouraged by their partnership with Deadcoins. The crypto ecosystem does need to be sanitized of the excess baggage and I would suggest that CoinJanitor also adds a Review Service to help investors avoid white elephant projects in the fist place. Prevention is better than cure.

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To read more about CoinJanitor, you can visit any of the following links

CoinJanitor Website: https://www.coinjanitor.io/
CoinJanitor Products & Services: https://www.coinjanitor.io/#how-it-works
CoinJanitor whitepaper: https://www.coinjanitor.io/wp-content/uploads/2018/03/CoinJanitor-White-Paper-v4.5.pdf
CoinJanitors Next event: https://www.decentralized.com

CoinJanitor Social Media

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Related Articles

1. https://www.coinjanitor.io/news/coinjanitor-ico-battle-at-icoin-summit/
2. https://www.coinjanitor.io/news/coinjanitor-and-deadcoins-com-join-forces-to-clean-up-crypto/
3. https://www.bloomberg.com/news/articles/2018-06-28/crypto-coin-graveyard-fills-up-fast-as-icos-meet-their-demise
4. https://www.trustnodes.com/2018/04/27/press-release-coinjanitor-project-charge-cleaning-cryptocurrency-markets-dead-coins

DISCLAIMER: The information contained within this post shall not be taken as financial advice. I am not a financial advisor and none of your investing should be carried out based on any information presented here. You can lose all of your money by not investing wisely. The above information is for educational and awareness purposes only. Kindly Endeavor to DO YOUR OWN RESEARCH.