P2share: how to turn any network (or testnet!) into a bitcoin miner

The concept of share issuance as a tool for aligning with Bitcoin's economic principles is exemplified through the hypothetical case of Hard Money Coffee (HMC). HMC demonstrates how different issuance functions can be tailored to individual sharechains or projects without affecting the overall Bitcoin consensus. This is achieved by committing to a policy where all net profits are either used to mine and then burn or buy and then burn shares of the sharechain, leveraging market mechanisms within the sharechain ecosystem.

At the inception of HMC, a significant number of shares are generated and assigned to an operations address controlled by the founders or stewards, similar to startup equity. These shares serve various foundational purposes, such as securing working capital and pledging collateral, while a separate stream of shares is created through proof of work (PoW) mining. The mining process, alongside atomic swaps with Bitcoin, provides a real-time global signal about the HMC initiative. To facilitate traditional business operations, entities like HMC Inc., possibly incorporated in Delaware, could be established. These entities, while operating in conventional legal frameworks, commit to channeling net profits back into the sharechain by mining or purchasing and then burning shares, thus acting as stewards of the sharechain's value.

The structure allows for seamless interaction with legacy legal systems, maintaining operational efficiency and incentive alignment. Pre-mined shares allocated to operations are initially excluded from being selected through the sharechain's consensus mechanism, ensuring early-stage control and financial management. Market dynamics play a crucial role, as any deviation from the commitment by HMC Inc. or similar entities could lead to a decrease in share value, directly impacting the entity's net worth and pressuring its assets and reputation.

The flexibility of the p2share mechanism enables interoperability with traditional legal structures while upholding bitcoin-aligned incentives. Over time, as the venture proves profitable and adheres to its share-burning commitments, the eligibility of pre-mined shares can be updated through consensus, reflecting the enterprise's success and reliability in the market.

As the sharechain matures and becomes more widely adopted, the need for issuing new shares decreases, with the issuance function designed to taper off to zero, moving towards a model primarily supported by transaction fees and buy-and-burn activities. This evolution underscores the decentralized nature of such initiatives, where no single node, including HMC Inc., holds overarching authority over the sharechain beyond the consensus-encoded rules, emphasizing the principle of decentralization inherent in Bitcoin's design.