POWH3D, A Beginner's Guide

This is a simple beginner's guide to the Proof of Weak Hands 3D Exchange. Read below to learn about how to get started and why you might want to participate!

Join the official POWH discord chat and use the #helpdesk if you have questions or just come in to say hello.

How do I get started? (If I already have Ethereum to exchange)

You visit the official POWH exchange and receive P3D tokens by exchanging Ethereum for them based on the exchange rate shown in the top right corner near the shopping cart (i.e 0.01 ETH/P3D).

You purchase tokens by entering an amount of Ethereum into the textbox and hitting "Purchase"

<img alt="Cosmic radiation" src="https://i.snap.as/WzVR3y8.jpg" />

Once you receive P3D tokens, they can be stored on the official exchange or transferred to any wallet supporting Ethereum tokens. Check the content below to understand how this exchange works and why you want to own these tokens.

If you don't have any Ethereum or don't have metamask installed, please check the answer at the bottom for a more detailed step-by-step guide.

Why would I want to participate in this and purchase P3D tokens?

This is a unique exchange that works differently from any other you've ever visited. You'll want to participate in this because:

  1. Dividends! Holding onto P3D tokens means you are constantly being distributed "free" Ethereum every single time any other user of the exchange buys, sells or transfers P3D tokens. This means (when the exchange has transactions), you are waking up to free "dividends" directly in Ethereum. Many users report receiving 0.05-2% in dividends on a daily basis (again, your mileage may vary, this entirely depends on transaction volume and is not at all promised anywhere).
  2. Fair. There was no pre-mine for P3D. Developers and contributors purchased small amounts (1ETH each) with no additional pre-mine of coins. After that, regular users started purchasing mostly small amounts too. The distribution of tokens is incredibly even. Everyone had the same chance to buy-in and everyone gets dividends only according to their P3D holdings. There is absolutely no developer fee.
  3. Fraud-proof. The Ethereum you enter into the system isn't being held by any person or people. The Ethereum in the exchange is handled only by a production open-source Ethereum smart contract. Contracts are immutable and this means there is no owner who could decide they wanted to keep the Ethereum for themselves (i.e exit scam is an impossibility).
  4. Transparent. You can see the full source code for the contract managing this exchange. The rules of the exchange are clearly posted and no promises are being made. There is a clear culture of honesty and transparency amongst the community and above all by the admins and developers.
  5. Decentralized. The entire exchange backend is powered by the smart contract which lives on the Ethereum blockchain and is "owned" by no one. If the site goes down, the contract can always be accessed by alternate front-ends. The contract simply operates according to rules that are fair and can't be changed. The development is being done by a distributed collection of admins and software engineers with a wide range of apps and services available for this ecosystem (charts, store, alternate UIs). You can be sure that there is much more in store for P3D.
  6. Active. There is already a large community around this project. Many users in a supportive community. Join the discord chat and use the #helpdesk if you have questions or just come in to say hello. Many people are committed to the success of this project and to helping newcomers.

How does this work?

The rules of this coin are simple yet also brilliant. Quick summary:

  1. Buy P3D tokens, and 10% of your transaction is used to pay dividends to other users.
  2. Accumulate Ethereum dividends as other users buy, sell, or transfer P3D.
  3. Reinvest or withdraw Ethereum dividends as they accumulate
  4. Sell your tokens at any time to receive Ethereum back from the exchange
  5. Have fun watching as your dividends and coin value fluctuate over time!

Longer, more detailed summary to outline the mechanics:

  1. As soon as you exchange the P3D tokens for your Ethereum, there is a 10% exchange tax incurred. This means if you exchange 10ETH into P3D the exchange will provide you 9ETH worth of tokens due to that tax.
  2. Unlike a normal exchange, that 10% exchange tax is then completely distributed to all other token holders that have used this exchange. The distribution of dividends is divided fairly based on the number of P3D tokens each user holds. The site owners directly keep none of that tax, this all goes to other users.
  3. Now that you hold P3D tokens, every single time a new person uses the exchange to receive P3D tokens, you also get paid your share of the 10% exchange tax on their transaction. The amount you receive is based directly on the number of P3D tokens you hold. Keep in mind though that all dividends are paid directly in ETH. In this way, you collect new dividends in real-time on every buy.
  4. Even better, you also collect dividends from other types of transactions such as other users selling or users transferring tokens. Yes, this means you are getting paid dividends directly in Ethereum every time a user buys, sells, or transfers tokens!
  5. As your personal dividends accumulate, you can check the site anytime to see how many dividends you've earned and then choose to either "withdraw" or "reinvest" your dividends. If you withdraw, you get the Ethereum dividends sent directly to your metamask wallet. If you reinvest, the Ethereum dividends are used to purchase yourself additional P3D tokens.
  6. Every time a new user purchases a token, the value of each token increases very slightly. This means that as people buy into the exchange, your P3D tokens are worth more and more Ethereum. However, as people sell their tokens, the value of each token you hold goes down.
  7. Continue accumulating P3D tokens by reinvesting (and/or withdrawing "free" Ethereum from your dividends).
  8. You can sell tokens at any time directly back to the exchange, and the exchange will provide you back Ethereum based on the current sell exchange price.
  9. Have fun watching as your dividends and coin value fluctuate over time!

That's all you really need to know!

Is this a scam or a fraud?

An understandable question given there are a lot of scams in Cryptocurrency. You are probably familiar with scam-like operations like Davor and Bitconnect. The important thing to remember is that:

  1. Scamcoins generally have big pre-mines where developers take a huge amount of coin for themselves. P3D has no pre-mine.
  2. Scamcoins generally involve shady anonymous site owners holding your money while you "earn". These owners could take your money and exit scam you at anytime. P3D has no one controlling your money, the exchange is entirely operated by an Ethereum open-source smart contract which cannot be changed! Owners cannot take Ethereum you put into the contract, even if they wanted to.
  3. Scamcoins usually make false promises about guaranteed returns or other claims of ROI which cannot be sustained. P3D makes literally no promises and is completely open and transparent about the mechanics of the system.

In short, this is not a scam. This is a unique exchange powered by smart contract which taxes all transactions (buy, sell, trade) in order to pay out dividends to all token holders! The developers keep no extra fee beyond the tokens they hold.

Okay, but what are the risks?

Nothing is guaranteed, and doubly so in cryptocurrency. Everything you do in this space requires careful attention and healthy skepticism. In the case of P3D, here are the major risks when participating:

  1. Hacks. If an enterprising black-hat hacker were to discover a security exploit in the smart contract code or in the Ethereum virtual machine, they could conceivably steal all of the Ethereum in the contract. Multiple independent Solidity developers have audited and closely reviewed the contract, so the likelihood of a hack is small but not zero.
  2. Stagnation. The lifeblood of P3D is volume and volatility. If the transaction volume slows down or stops (i.e no one is buying, selling, or trading) then this project will generate fewer and fewer dividends. Depending on when you got in, had you not broken even by that point the dividends stop flowing, you would be at a loss. No one knows when transaction activity will dry up, but it's unlikely to happen in the short-term. Unlikely but not impossible.
  3. Panic Selling. The value of each P3D token is determined entirely by the buy and sell activity. Every token purchase increases the price and every sell decreases the price by a marginal amount. However, if there was mass hysteria and every single person sold, the value of the P3D tokens would be significantly reduced which would mean your token holdings would be worth very little Ethereum. If there was a massive panic sell, you would of course receive dividends on every sell proportional to your holdings. You would then also receive dividends on every buy as people began buying in again. Would this be so bad?

Those are the three major risks for participating. Make your own decisions on if you think it's worth trying!

Am I initially losing money when I exchange my Ethereum for P3D?

The mechanics of the exchange is that since both buys and sells are taxed at 10%, that you are effectively agreeing to about a 20% tax of your Ethereum when entering into the P3D exchange.

For example, if you purchase 10ETH worth of P3D, 10% of that will be taken in the dividends transaction fee then distributed to other users. If you were to then immediately sell back your tokens for Ethereum, an additional 10% sell fee is incurred and distributed to all users. This means that if you bought in 10ETH and then immediately sold, you would receive back 8ETH.

However, from the moment you own P3D tokens, you begin earning Ethereum dividends for every other user that is buying, selling, or trading. These dividends are provided by that tax, and the dividends you receive on every transaction will mean that, assuming sufficient transaction volume, you will likely break even within a few days to a week of holding the tokens. From that point on, all dividends are profit which you can choose to withdraw or reinvest for even more tokens! Note that there are no promises you will profit or break even. If you purchased tokens, and then literally no one else ever bought, sold or traded into perpetuity, then you would accumulate no dividends and would have lost 20% of your investment.


How do I get started? (If I don't have Ether)

First, you need to use an exchange to purchase Ethereum:

  1. Go to Coinbase or Gemini, signup for an account.
  2. Setup a funding source such as your bank account. (Don't worry both of these exchanges are very well-known and secure)
  3. Purchase Ethereum (ETH) by exchanging your local fiat (i.e USD) for Ethereum.
  4. Purchasing ETH may take a few days for the first purchase, so now you may need to wait.

Once the Ethereum has been successfully purchased on the exchange:

  1. In a new tab, make sure you are using the Chrome browser and then install metamask which enables you to use Ethereum web apps such as POWH3D.
  2. Create a metamask account and store your seed words.
  3. Open up the metamask extension in chrome and click the "..." and select "Copy address to clipboard".
  4. Go back to Coinbase or Gemini exchange and find the "Send" or "Transfer" function for your wallet.
  5. Transfer the amount of Ethereum you want to spend to metamask by entering in your address as copied from metamask in step 6.
  6. Wait for the Ethereum to land in your Metamask wallet.

Once you see the Ethereum in your Metamask wallet, go back to the first question "How I get started? (If I already have Ether)". You are ready!

Edit Report
Pub: 30 Mar 2018 03:10 UTC
Edit: 30 Mar 2018 03:11 UTC
Views: 200