It seems to me 'market making' will be the primary activity, other than development projects, for the 50% of coins.  Yet, I see no finance team to complement the dev team.  You show no credentials or resume, hide behind an avatar like 99.9% of other users on this forum, and somehow we're supposed to be comfortable with the idea your skills as an arbitrageur and capital/finance manager will provide positive ROI for 50% of mined coins?  How in the world is this different than banks using deposits so poorly that once the market turns against them (eg. mortgage market) even slightly, they will need a bail out?  Congrats, you have invented the open source version of this financial nonsense.  Except there is no central governing entity to bail out zenith coin.  It will just fail, leaving a wasteful carbon footprint and nothing more.  This is laughable.  And all transparency will do is allow us to better see you risk assets and, consequently, DESTROY future development projects.  Your 'market making' activities will have the exact opposite effect of creating incentive for the devs.  I repeat, this is laughable.

Let's speak about arbitrage here for a second.  Current crypto markets are extremely inefficient, so any basic level of automation can easily profit out of this inefficiency.

Yes, lets speak about arbitrage.  Being a former fund manager for over ten years, when you simplify the dynamics of market trading, be it arbitrage or whatever, as a 'basic level of automation,' then I become wary of your business model.  It shows your inexperience, and quite frankly, immaturity and lack of discipline.  Show me your proposed scheme.  Is it strictly lateral arbitrage?  That is, will you exchange zenith coins into BTC then transfer coins to mtgox and sell the BTC into USD?  And then what happens if BTC runs?  You've basically crippled your returns.  And what if you need to purchase BTC and you've purchased at the top of said run and BTC falls?

And again, what are your credentials to even propose that there's a 'basic level of automation' which can enable arbitrage opportunities?  Who's the trading team?  Or are the devs, who are supposed to be working on projects, going to have to spend their time doing something outside their level of expertise?  I can go on and on...

It is clear the model for your coin is ill-advised.

As you say, there are clearly some level of risk with regards to arbitradge and a potential to take on loses.   Not every strategy may work long term. 

Howwever, this model is much better than any of the other coins that are out there.   What value do they provide other than serve as an indirect way to mine BTC or LTC?

This is the third time you've ignored my inquiries into your credentials as a capital manager and the details of who the trading/finance team is.  It is clear there is no trading team.  And it is safe to assume your resume lacks any experience in capital management.  A coin is only as good as its devs and their requisite skills.  So to answer your question as to what value do other altcoins provide, apparently the same value of zenith coin.  As of right now you're just a seven character string asking everyone to assume your the Warren Buffet of the cryptocoin world.  But I thank you for the chuckle...