Author: Jan Kučera 2013-12-10 16:23:01
Published on: 2013-12-10T16:23:01+00:00
The author of this message is proposing the idea of variable block rewards for mining based on popularity, either by improving Bitcoin's protocol or forking a new coin. They believe that elasticity of money supply could bring more exchange rate stability to the hypothetical new coin. The proposed alternative mining scheme would grow or decrease block rewards with the popularity of the coin, which would make the exchange rate more stable since greater interest would not result in a higher coin price. The author observes that Bitcoin lacks some basic features of money, behaving more like a commodity such as gold. They have been observing the exchange rate for several months and have noticed volatility that does not seem to go away, suggesting that something needs to change to achieve a more stable currency. While they understand that a philosophy of "one coin = never changing features" can be present, they also speak about a fork.In the proposed system, there would be no reliance on external data, as the network itself would decide on reward height and every node would be free to do so. Each network node would determine popularity depending on various factors, such as coin valuation/exchange rate and number of transactions, and come up with its own block reward value. If a new block were mined with such a reward value, it would be included in the node's chain. There would be a percentage of tolerance for block reward value to prevent system collapse.The author acknowledges that they may be wrong about their idea and seeks feedback from developers on whether it has been spoken about before and what opinions developers have on the proposal.
Updated on: 2023-06-07T22:23:02.950009+00:00