Humint and Mastercoin Foundation propose Goxcoin to help Mt. Gox recover lost bitcoins

By Nicel Jane Avellana

Mar 05, 2014 02:04 PM EST

Humint and Mastercoin Foundation have issued a proposal that would help Mt. Gox get back the bitcoins it had lost, TechCrunch reported.

Goxcoin is the name of proposal posted on Humint's website. Basically, Goxcoin would replace the bitcoins that the Tokyo-based platform lost, with one bitcoin lost equal to one goxcoin. Depending on the number of bitcoins that will be recovered in the next few years, goxcoin owners would be able to get dividends. Goxcoins can also be traded or bought if the owners think that the efforts to get back the stolen bitcoins are making progress. What Humint and the Mastercoin Foundation ask of Mt. Gox and Mark Karpeles is its transaction list and an account ledger.

The proposal stated, "We envision Goxcoin as a User Created Asset, issued using the Mastercoin Protocol and given to Mt.Gox customers to denote their Mt.Gox BTC account balance at the time the exchange went offline. Goxcoin would be issued on a one-to-one basis to trusted and verified accounts.

These digital tokens, representing Mt.Gox's Bitcoin obligation to the customer, would be transferable and limited in supply. There would be only one issuance of Goxcoins.

Using an on-blockchain token allows for trackable balances on a public ledger, enabling the pro-rata distribution of any BTC that may be recovered through foresensic investigation, law enforcement, and/or the liquidation of Mt.Gox as a corporate entity."

TechCrunch described the effort as some kind of "vigilante bailout" that would prompt bounty hunters to actually try to find out why or how Mt. Gox lost 750,000 BTC. At the least, the initiative would provide those who lost their digital currencies a potential solution to their problem. The bounty hunters stand to get a 10% payout for the bitcoins they find, the report said.

Whether this initiative will actually work will depend on whether the leadership at Mt. Gox will agree to cooperate and if it will actually be implemented, the report said.  

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