.. Proof of Weak Hands ..
Masternode link: https://dice.indocoin.cash/powh/?ref=
This concept is adopted from https://powh.io/
and works pretty much the same way.
What is this?
This game is called powh, or Proof Of Weak Hands. It is a simple game that sells tokens: For every token that is purchased, the cost goes up by about 0.01. For every token sold, it goes down
the same. In this way, the balance in the contract will always be tied to the number of tokens in circulation.
Ok, but whats the point?
This is where it gets fun: Dividends. You see, out of every purchase 10% of the balance is taken and redistributed to the current token holders pro rata. So as a token holder, you
automatically receive a proportional amount of the balance for every single purchase after yours. Sounds pretty cool right? But it gets even better, the same is true when someone sells their
tokens. When Joe decides to sell, 10% of the balance from that sale is ALSO distributed to the token holders. This means that token holders don't care whether you buy or sell, they make money
Wait, hold on, you're saying when I buy OR sell powh I lose 10%?
That is where the Proof Of Weak Hands concept comes in to play. You pay a premium to join the party, and to leave the party. These premiums fund the party. Due to this, token holders are
incentivized to stay in the party and get paid over time. Those who leave early will lose out on their 10%, as well as any future dividends.
Do I have to pay 10% when I withdraw my dividends?
Nope! Dividends can be transferred to your wallet any time at no charge (except for the Ethereum gas cost of course). So you can use these dividends as passive income, but there's also
another option: Reinvestment. You can use your dividends to buy more powh tokens from the contract, increasing your future dividends.
This sounds like a Ponzi scheme!
I'm glad you mentioned that! Lets take a look at how the SEC defines a Ponzi scheme from www.sec.gov.
A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new
investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make
promised payments to earlier-stage investors to create the false appearance that investors are profiting from a legitimate business.
With little or no legitimate earnings, Ponzi schemes require a consistent flow of money from new investors to continue. Ponzi schemes tend to collapse when it becomes difficult to recruit new
investors or when a large number of investors ask to cash out.
Basically, Ponzi schemes "claim" to invest your money in high return / low risk assets, while guaranteeing you a fixed payout over time. Then they proceed to hold on to your money, using it
to pay the next guy. Other than the dividend payout when others buy & sell, there is no guaranteed payouts. But each powh token has an intrinsic value of the dividend payouts that would be
automatically accrued by the selling of all other tokens.
Ok, but what happens if everyone sells their tokens, won't I be left holding the bag?
In any old pyramid scam this would be true. But this is where the 3D aspect comes into play: as everyone is dumping their tokens, you'll be receiving dividends for every sale. As more people
sell, your pro rata portion of the pot increases, and your dividends increase. If you're the last person in, you had the strongest hand, and will be rewarded with generous dividends.
So are there guaranteed returns?
As I mentioned above, aside from the dividend payouts, powh does NOT guarantee any returns. This is what separates it from a typical Ponzi scheme. In order to get paid dividends, new money
must come in, or current holders must sell. Outside of these actions no dividends are ever paid or promised.
Is there a way to increase my dividends besides buying more tokens?
Yes! If you stake a certain number of tokens (which just means holding them in your wallet) you will receive a "Masternode" link. Anytime someone who has clicked this link buys or sells powh
tokens, 30% of the fee incurred is deposited directly into your dividend fund. You will continue to get this cut from that user as long as the cookie remains on their browser. At the moment,
it requires 100 tokens to have a Masternode, but this is a promotional level and will likely go up to soon.
This application has been made for entertainment purposes and should be considered as such. No guarantees are given.