<p>The rules for setting the rewards in the blocks can be as simple or as complicated as you want. Most Bitcoin derivatives have followed suit with fixed mining block rewards that are halved after some amount of time, just changing such amount and the time after which it gets halved.</p>

<p>Others, (as Lucky, Doge, Cat coins) have a random block reward whose mean value is reduced after some amount of blocks. Plus, some coins (42 and formerly Doge) have a random "superblock" where reward is much higher than usual.</p>

<p>Primecoin and its derivatives have the reward dependent on the difficulty of the network, and there are some other, weirder models.</p>

<p>The "premined" model is usually achieved by defining the rules so the genesis block yields an incredibly high amount of coins and the next blocks give out a more "normal" distribution with a normal decay of reward. That way the creator of the coin, just by the act of creating the genesis block, automatically becomes the owner of a significant amount of coins.</p>

<p>"Insta-mining" is similarly, defining the yields so the first blocks give a very high reward which then decays extremely rapidly - so creator of the coin and the very first miners (usually the creator's associates) end up with most of the coins. Quarkcoin was highly criticised because of this, in the end was more or less accepted by the community after its novel approach of multiple proofs of work was deemed interesting.</p>

CC BY-SA 3.0
2014-04-01T23:03:40.723Z
2014-04-01T23:03:40.723Z
Joe Pineda
<p>If you create the coin, you get to make the rules.  Nothing stops you from patching the software to make your premining as easy or as hard as you want.  For instance, you could set the difficulty schedule so that the first billion coins require very little or zero proof of work to mine; then you could mine them all at once and award them to yourself.</p>

<p>Of course, the hard part becomes convincing anyone else to use a currency that's so obviously slanted in your favor.</p>

CC BY-SA 3.0
2014-01-17T04:29:39.507Z
You could just inject a coinbase transaction in the genesis block if you wanted to.
David Schwartz
CC BY-SA 4.0
2018-06-08T02:06:28.530Z
@DavidSchwartz I thought the coinbase in the genesis block was unspendable: https://en.bitcoin.it/wiki/Genesis_block
JBaczuk
CC BY-SA 4.0
2018-06-08T03:23:46.477Z
@JBaczuk: That's true for Bitcoin because of a specific bug in the original code, which now has to be kept in order to avoid a hard fork.    But if you're making your own coin, you can fix that bug.
Nate Eldredge
CC BY-SA 4.0
2018-06-20T10:48:03.103Z
@NateEldredge could you share some link
rahhh
CC BY-SA 4.0
2018-06-20T14:02:36.947Z
@rahhh: https://bitcoin.stackexchange.com/questions/37559/how-to-make-genesis-block-transaction-spendable https://bitcoin.stackexchange.com/questions/10009/why-can-t-the-genesis-block-coinbase-be-spent https://bitcoin.stackexchange.com/questions/35760/is-it-true-the-genesis-block-reward-cant-be-spent-forever?noredirect=1&lq=1
Nate Eldredge
CC BY-SA 3.0
2014-01-15T00:10:55.807Z
2014-01-15T00:10:55.807Z
Nate Eldredge
<p>Looking to create an Altcoin for fun and I heard about premining. Can this be done to premine all the coins without leaving my computer mining for days?</p>

<p>I followed a guide here: <a href="http://andarazoroflove.org/how-to-create-alt-coin-scrypt-clones-for-fun-and-profit-bitcoin-litecoin-secrets-exposed/" rel="nofollow">http://andarazoroflove.org/how-to-create-alt-coin-scrypt-clones-for-fun-and-profit-bitcoin-litecoin-secrets-exposed/</a></p>

<p>Thanks</p>

CC BY-SA 3.0
2018-02-07T03:41:06.397Z
your link does not work. 404 not found. I am curious and want to see.
creator
CC BY-SA 3.0
2018-03-13T08:25:42.917Z
can you share a working link, the link is broken
Varun Kumar
<bitcoind><altcoin>
How Would One Premine an AltCoin?
1ManStartup
# How Would One Premine an AltCoin?

(Asked by: username_0 on 2014-01-14)

Looking to create an Altcoin for fun and I heard about premining. Can this be done to premine all the coins without leaving my computer mining for days?

I followed a guide here: <http://andarazoroflove.org/how-to-create-alt-coin-scrypt-clones-for-fun-and-profit-bitcoin-litecoin-secrets-exposed/>

Thanks

**Tags:** bitcoind, altcoin

> **Comments:**
> **username_1**: your link does not work. 404 not found. I am curious and want to see.  
> **username_2**: can you share a working link, the link is broken  

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## 2 answers

### Answer by username_4 on 2014-01-15. Score: 6 | Accepted answer

If you create the coin, you get to make the rules. Nothing stops you from patching the software to make your premining as easy or as hard as you want. For instance, you could set the difficulty schedule so that the first billion coins require very little or zero proof of work to mine; then you could mine them all at once and award them to yourself.

Of course, the hard part becomes convincing anyone else to use a currency that's so obviously slanted in your favor.

> **Comments:**
> **username_5**: You could just inject a coinbase transaction in the genesis block if you wanted to.  
> **username_6**: @DavidSchwartz I thought the coinbase in the genesis block was unspendable: https://en.bitcoin.it/wiki/Genesis_block  
> **username_4**: @username_6: That's true for Bitcoin because of a specific bug in the original code, which now has to be kept in order to avoid a hard fork.    But if you're making your own coin, you can fix that bug.  
> **username_7**: @NateEldredge could you share some link  
> **username_4**: @username_7: https://bitcoin.stackexchange.com/questions/37559/how-to-make-genesis-block-transaction-spendable https://bitcoin.stackexchange.com/questions/10009/why-can-t-the-genesis-block-coinbase-be-spent https://bitcoin.stackexchange.com/questions/35760/is-it-true-the-genesis-block-reward-cant-be-spent-forever?noredirect=1&lq=1  

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### Answer by username_3 on 2014-04-01. Score: 3

The rules for setting the rewards in the blocks can be as simple or as complicated as you want. Most Bitcoin derivatives have followed suit with fixed mining block rewards that are halved after some amount of time, just changing such amount and the time after which it gets halved.

Others, (as Lucky, Doge, Cat coins) have a random block reward whose mean value is reduced after some amount of blocks. Plus, some coins (42 and formerly Doge) have a random "superblock" where reward is much higher than usual.

Primecoin and its derivatives have the reward dependent on the difficulty of the network, and there are some other, weirder models.

The "premined" model is usually achieved by defining the rules so the genesis block yields an incredibly high amount of coins and the next blocks give out a more "normal" distribution with a normal decay of reward. That way the username_1 of the coin, just by the act of creating the genesis block, automatically becomes the owner of a significant amount of coins.

"Insta-mining" is similarly, defining the yields so the first blocks give a very high reward which then decays extremely rapidly - so username_1 of the coin and the very first miners (usually the username_1's associates) end up with most of the coins. Quarkcoin was highly criticised because of this, in the end was more or less accepted by the community after its novel approach of multiple proofs of work was deemed interesting.


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