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Naj Coin: The Universal Poker Coin

Sokura N. Patoshi
Abstract: In today's current economic environment the
adoption of a universal poker coin, in the form of a
Counterparty.io asset, would naturally create a free
market of exchange in the online poker industry, bringing
an asymptotic decline in effective rake. The correct
parameters would ignite a mini poker/gold rush transferring
value, from current leading centralized site model, back
into the players 'ecology' via Naj Coin. The project is
considered successful if it can reach a tipping point in the
industry with respect to market cap vs. the current leading
centralized site's market share. The method is simple:
spread the adoption of crypto-currency by creating
incentive for early adopters to sign up for Counterparty
wallets. After the initial drop is complete, and with enough
useful nodes in the industry, a market will naturally arise
from the value the new, more efficient, network creates.
Naj Coin aligns individual minded players with the
betterment of the economy of the game by enticing them to
cooperate for their own individual gain.
1. INTRODUCTION
It is well know that the events of Black Friday and associated regulations dramatically changed the face
of online poker negatively in the eyes of the general player by essentially creating and sustaining a
monopoly in the industry[1]. The effective rake, which we define basically as profits leaving the game
to third parties, is the largest cost the individual player faces in their life time of poker, regardless of
whether that player is of the recreational type, the professional type, or something different or in
between[2][3]. Furthermore, we suggest that the effective rake currently offered to players is propped
up by these regulatory controls that effect, among other things, the liquidity or ability of the players to
play freely on whichever site they choose. The current network created between players, banking
networks, and sites is inefficient and costly compared to the new crypto-currency network being
created today. It is widely understood by knowledgeable persons in the crypto-currency industry that if
the poker network could somehow be flipped over to adopt crypto-currency, there would be a new
drive created for a freer and lower cost market, thus dissolving the current monopolist practices.[4]
Lastly, it is not at all an accident, and quite significant to point out, that crypto-currency functions at a
level slightly at the top of, and sometimes even above, current regulatory control.

2. THE INTRINSIC VALUE OF NAJ COIN


The monopolistic practices and inefficiencies in the network they sustain are what have created the
bubble that will ultimately fuel Naj Coin. In his recent post Transportation, divergence, and the
industrial revolution Nick Szabo sets up the setting for our value analysis, Metcalfes Law states that
a value of a network is proportional to the square of the number of its nodes. In an area where good
soils, mines, and forests are randomly distributed, the number of nodes valuable to an industrial
economy is proportional to the area encompassed.[5] By using our definition of effective rake and
assuming an ideally distributed poker network, we are able to use Szabo's formalization of Adam Smith
for our own Naj Coin valuation: the potential value of a land transportation network is the inverse
fourth power of the cost of that transportation. In simple terms the value of Naj Coin is equal to the
current value leaving the game through monopolist profits. Therefore the expected value of each Naj
Coin is proportional (inversely to the fourth power) to the network it creates, up to at least the current
profits sustained by the monopoly in the industry.
3. WHAT ARE THE PARAMETERS FOR NAJ COIN
Since the purpose of Naj Coin is to create an incentive to drive a crypto-currency adoption movement,
the ideal parameters would necessarily be identical to bitcoin, with a few minor adjustments. These
adjustments naturally arise since bitcoin's new decentralized banking network has already reached its
own self sustaining level of adoption. There is, therefore, a smaller barrier of entry today since many
players are already naturally becoming aware of blockchain technology and its benefits. Moreover, the
system on which Naj Coin will ultimately reside, bitcoin's network, is already incredibly robust as it
has 5+ years of testing behind it. Therefore, we propose the same number of Naj Coins to bitcoins, 21
million, with the same distribution rate of 10.5 million in the first release followed by 5.25 million in
the 2nd, 2.125 million in the 3rd and so on. Since the stakes are nowhere near as high and the technology
is already well established we feel a drop of 140 days (vs bitcoin's 140 years) will be plenty to achieve
the market saturation needed to ultimately create a more efficient network for online poker. These
parameters become locked through decentralized technology and are unalterable beyond the time of
Naj Coins' initial creation. Naj Coin will be divisible up to 8 decimal places.
4. HOW TO SIGN UP FOR A WALLET AND RECIVE NAJ COIN
Signing up for a wallet and receiving Naj Coin is cost-less, extremely easy, and fast. Players simply
visit https://counterwallet.io/# and click Create New Wallet upon which a password for their wallet
will be generated. After copying the password for safe storage (you CANNOT get your wallet or Naj
Coins back if you lose your password!), users check the box confirming they have saved their password
and click continue. New users can click skip next step then ok, and can now log into their
counterwallet using their password. After accepting the terms the user is brought to their wallet
interface much like an email account. Lastly users copy the 34 character string of letters and numbers
located to the far right of My Address #1, and send that address or public key to whomever they
expect to received Naj Coin from (see next section).

5. CREATING A MARKET FOR NAJ COIN


Creating a market for Naj Coin happens in phases. The first phase is to use community nodes as
strategic access points for distribution. By organizing leaders of key communities who can understand,
explain, and distribute Naj Coin within their own community, the responsibility of distribution can be
decentralized among the global players' communities. Once the initial 10.5 million coins has been
dispersed (and even before this), a planned marketing campaign to merchants and entities within the
industry will begin. API's will be created giving seamless adoption for any entity wishing to serve the
poker community as a trusted business and competitor in the industry. Poker news sites have incentive
to adopt and report about the players Universal Coin and ultimately are expected to play a major role in
its adoption. There are many interesting possibilities in this regard not mentioned in this paper.
6. POSSIBLE ISSUES FOR NAJ COIN
There is often the question about whether or not other poker coins might arise in the industry-players
should expect this and welcome them. The purpose of Naj Coin is mostly to spread awareness of the
power of crypto-currency, and beyond the initial explosion of Naj Coin value, it might be that it fades
away to be a simple collectible or less. But because of this it cannot be said that any adoption, no
matter how small can be a waste because such awareness then remains cumulative. In other words, you
cannot undo the teaching that creating a wallet and receiving a coin does. Naj Coin has advantages
over bitcoin in that it can be replaced over and over and still have the same intended result-lower rake
through the adoption of crypto-currency. Because of this, players always have the option of voting to
adopt a new universal coin if a superior platform to counterparty (or a superior version of counterparty)
arises. Conversely Naj Coin, being the first Universal Players coin of its kind, may always be the bed
rock for trust and cohesion within the players community. Both possibilities serve the purpose of this
paper.
7. CONCLUSION
We have made a very simply proposal born from an astute observation of what we call effective rake.
The basic idea is players will be paid to sign up for email accounts by receiving Naj Coin to their
counterwallets. Since early adopters have the most to gain, and they only gain if a true network is
established, there is a natural drive for the spread and adoption of Naj Coin. The network this drive
creates becomes a channel for the effective rake, essentially siphoning 3rd party monopoly profits back
into the industry. Because of our observations and comparisons of current centralized site models to
centralized banking, we expect an initial stabilization of effective rake in relation to inter-site
valuations, followed by an asymptotic decline as described in the lecture Ideal Money[6].

REFERENCES
[1] Dominik Kofert, The Future Of Poker http://www.pokerstrategy.com/news/world-of-poker/TheFuture-Of-Poker-Dominik-Kofert-Blog_56247/ Feb 2006
[2] John Smith, Definition: Effective Rake
https://thewealthofchips.wordpress.com/2014/11/10/definition-effective-rake/ Nov 10 2014
[3] Newguy, Moral Poker http://forumserver.twoplustwo.com/showpost.php?
p=43037098&postcount=5 April 2014
[4] David Gzesh, Online Gambling: Bits and Chips - Bitcoin 2013 Conference
https://www.youtube.com/watch?v=qcfhzcF6RcE May 2013
[5] Nick Szabo, Transportation, divergence, and the industrial revolution
http://unenumerated.blogspot.ca/2014/10/transportation-divergence-and.html#links October 2014
[6] John Nash, Lecture: Ideal Money http://en.wikipedia.org/wiki/Ideal_money 1995-present (2014)