First let me explain that the colored coin is the asset not the POS coins that LGS is or will be staking.
Colored coins/Open assets are a way to represent ownership in whatever the colored coin represents.
I don’t see any of the POS coins that we will support being abandoned by the devs or the community, we will be carefully choosing the coins we stake based on various criteria. There is also the simple fact that POS needs only 2 wallets running and actively staking for it still be active and “alive”, yes it might essentially be a zombie coin at that point but it would still be alive.
As for what we would do if/when a coin becomes a “zombie”? We do what any fund would do, we write it off as a loss, but with crypto being what it is that coin could have a comeback much like MINT has seen over the past few months.
As for pricing and value. As I posted in response to @suchmoon, currently the buy in is fixed at 0.01/LGS, when the underlying value of the staked coins reaches a certain point, 5-10btc is a decent # IMO, I will transition it to a NAV based pricing model, likely with a weekly updated NAV when dividends are processed. The buy in value will increase or decrease with the NAV of the overall asset.
LGS Versus Stakeminers!
I am almost insulted to see that name listed anywhere near mine or this new site/asset. Its obvious what stakeminers is and isn’t. LGS will be run the same as CSC, in that its a fully managed staking pool, rather than buying in to random coins or seeking those with the highest stake rate, we will pick what we believe are the coins with the best chance of long term success as well as the best entry point to buy in to said coins, we will also look to keep an even basket weight of the coins we do stake and sell some off when the value increases enough to throw the weight off. The reinvest % is also relevant to this point. As I posted in the OP, the % will start high and be dropped over time. This does 2 things, 1st it gives the pool a running start and some growth early on and 2nd dividends should increase as the reinvest % is dropped.
I highly suggest anyone and everyone who can stake a coin or 2 do so. However, there are a TON of coins to stake and support and if you want to actively stake more than a few at a time you need dedicated hardware that is up to the task. It can also be beneficial to have someone else managing the ins and outs of what coins to buy and when to sell off some or all of a certain coin to take some profit and keep a portfolio evenly balanced. There is also the cost of running a dedicated server to stake coins, if we just account for power usage of a server to handle multiple wallets, you would need to invest enough capital in the coins your staking to produce enough to pay the overhead and make a profit, just like POW. With a fund like LGS the overhead is shared by everyone invested and lets you get in with a much smaller amount to get started.
If there is anything I missed please let me know.