Published on: 2013-12-10T17:18:40+00:00
In a mailing list discussion within the Bitcoin-development group, Jan Kučera has proposed a new system for determining block rewards. The proposal suggests that each network node should independently determine the popularity of the reward based on factors like coin valuation/exchange rate and number of transactions. This approach eliminates the need for external data and allows every node to decide the reward height.However, Jameson Lopp, a software engineer at Bronto Software, expressed skepticism towards this proposal. He raised concerns about relying on factors such as coin valuation/exchange rate. Lopp mentioned that this topic has been previously discussed on Bitcointalk.The email conversation between Lopp and Kučera took place in 2013. Kučera's proposal revolved around the concept of variable block rewards for mining, where the network itself determines the reward height. Factors like coin valuation/exchange rate and number of transactions would be considered by each node to determine the popularity and set the block reward value.Kučera also suggested that this alternative mining scheme could improve exchange rate stability in a hypothetical new coin. By allowing block rewards to grow or decrease with the coin's popularity, the exchange rate would become more stable, avoiding the price increase associated with greater interest. The author believes that Bitcoin currently lacks certain fundamental features of money and behaves more like a commodity such as gold. They have observed volatility in the exchange rate and propose changes to achieve a more stable currency.The proposed system would eliminate the reliance on external data, giving each network node the freedom to determine its own reward height. Each node would evaluate popularity based on various factors, including coin valuation/exchange rate and number of transactions. If a new block is mined with a specific reward value, it would be included in the node's chain. To prevent system collapse, there would be a tolerance percentage for block reward values.The author acknowledges the possibility of being wrong and seeks feedback from developers. They are interested in knowing whether similar ideas have been discussed before and what developers' opinions are on the proposal. The email was sent by Jorge Timón from freico.in, who appears to be affiliated with the discussion.
Updated on: 2023-08-01T06:51:10.208896+00:00