This bounty is very simple for all you altcoin developers out there:
1) Replace the proof-of-work with a signature verification for a ECC public/private key pair
2) Embed the first 64 bits of the most recent block into every transaction at the time it is created (Proof of Stake)
3) Transaction fees are 'destroyed' and money supply adjusted accordingly
4) Display all balances in the GUI as a percentage of the money supply * 1000000 as of the time they were SPENT... unspent TRX are displayed as percentage of the money supply as of the head block.
5) When entering amounts in the GUI, they should be entered in the same format they are displayed
6) The genesis block should be initialized by a .cpp containing a static array of PTS and BTC addresses and balances, this will require the network to support spending PTS and BTC addresses in the signature verification
7) Assuming a maximum of 100 GB per year in transactions, the minimum total cumulative transaction fees for the year should be 5% of the money supply. Calculate the minimum fee per byte accordingly. The 5% figure should be easily changed by adjusting a single constant.
Unspent outputs after 1 year expire and thus can be pruned because they cannot be spent, this forces people to spend their money once per year (Proof of Stake, and keeps the blockchain size to a maximum size).
The resulting alt-dac template will be added to our DAC developer toolkit as a quick way to bootstrap a dividend paying DAC. When the Ripple Consensus Implementation Bounty is completed then that will be integrated to replace the Signature POW used here to create a decentralized system.
A Test network must be launched and used successfully
Blocks should be produced as soon as there is at least one transaction, but no faster than once every 30 seconds
The code should be structured such that the NAME of the coin can be changed in a single place.