Author: Andreas Petersson 2013-06-14 21:25:44
Published on: 2013-06-14T21:25:44+00:00
The author proposes the idea of an asymmetric market where altcoin ALC is merge-mined with BTC but without block reward. To create 1 ALC, one can either destroy 1 BTC or buy 1 ALC for a floating amount from an exchange. This would lead to a slightly lower price for 1 ALC and an automatic ceiling of 1 BTC since BTC could always be sacrificed to gain ALC. However, the price of ALC would not diverge drastically lower as someone was willing to destroy 1 BTC to create it. The system also does not inflate the cryptocurrency realm. The author suggests that traded ALC could even trade higher than sacrificed ALC due to the former being spendable instantly while the latter would need a maturing period. The implementation of this system for an altcoin where the price is floating independently of Bitcoin is unclear.
Updated on: 2023-06-06T17:12:05.521599+00:00