dajackson33 wrote:
How generous of you guys for following your own policy, getting screwed by it, and not trying to steal those profits back from your users. How admirable! Merry Christmas indeed!
Also, it’s a little appalling that you were so ignorantly unaware of Litecoinpool’s payout structure. Perhaps y’all should start getting to know your competitors a little better—it’s business 101, Mr. “Prohashing is trying to be a legitimate business.”
Despite your incredibly greedy fee structure, I was actually excited to try you guys out. But it’s clear you guys have your heads so far up your own a**es and your priorities way out of whack—good luck making any money charging 5x your competition and sending tax forms. Good job making it very clear you care more about yourselves than your customers. “Waaaaaaaaa my brother and I work so many hours a week!” That’s what it takes to run a business, dude. The people who are successful just don’t b*tch about it.
The reason we haven't looked deeply into Litecoinpool's fee structure is exactly what you said - there isn't any need to, because we can make more money by fixing the many issues here that are caused by the increase in the number of miners. None of the companies in this industry can handle the growth right now, and trying to take marketshare from competitors isn't necessary when it's difficult enough to keep up with demand. Remember, we closed registrations for months for that reason and when we reopened, usage tripled. Of course, we want to get to the point where we have enough manpower that we spend time on advertising and competition, but we are purposely remaining slightly understaffed for when this bubble ends so that we don't have any layoffs.
As to the tax forms, that's what we decided to do, and if you're unhappy about it, then you can fill out the form for the income you have made already and leave. I advise other customers who disagree with the simple step of receiving one piece of paper to also fill out the form in a few weeks and leave. While we appreciate customer feedback on everything else, it should be made very clear that this is one issue where we will not be listening to customers. I would rather people spend their posts and tickets writing to us about things we can work to improve, like disconnects or adding new coins, rather than this decision, which is final.
It's also important to understand that once we set a precedent of submitting 1099 forms, it is likely that other pools will follow suit. If litecoinpool has US customers and chooses not to issue the forms, then the IRS could take them to court as a test case, asking the judge why we submit the forms and they do not. Now that mining is a big business, and big businesses attract audits, I don't think that many mining pools will be operating without greater scrutiny of laws and regulations.
I also want to address the issue that has been brought up here about the possibility of our making less money or going out of business. I disagree that there will be any significant reduction in the number of miners as a result of these forms. But even if there were, we already performed a risk-benefit analysis and realized that we are very fortunate and don't need to be billionaires. Going out of business over this issue is a risk we're willing to take, so even if it is true, having fewer miners is not a persuasive argument.
Again, this is not a big deal. It's just some paperwork that needs to be sent. Nothing else is changing, and it affects less than 4% of miners.
