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Title: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: Tittiez on May 10, 2013, 01:42:49 AM Altcoins make the perfect testing beds right? Well...
What would happen if the difficulty increased the mining reward instead of decreasing them? Say Difficulty 1 produces 1 coin. Difficulty 2 produces 2 coins. Difficulty 4 produces 4 coins... etc etc... I'm no economist, so I'd like to here what other people think. The way I see it, we'd see difficulty grow massively, and when it looses its profitability 90%+ would stop mining it. It'd eventually fall to a very low difficulty. There is so many routes it could take after that. It could die off. It could slowly increase in profitability again due to demand and then everybody would jump on it again, and we could see huge spells of massive difficulty and minimal difficulty. I don't know. Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: markm on May 10, 2013, 01:46:56 AM I thought that had already been done?
It has certainly already been said plenty of times. Is it maybe that it is part of decrits or that other coin that is still on the drawing boards being discussed for ages? (Netcoin?) Hmm I cannot recall any coin having actually done it yet that has been released so I guess it was just empty vapour ideas or was part of one or both of those big plans. -MarkM- Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: caish5 on May 10, 2013, 01:48:58 AM Solidcoin does it.
Although the extra coin added is very small. Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: GSnak on May 10, 2013, 01:50:02 AM This is called inflation.
Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: HeroC on May 10, 2013, 01:50:44 AM Good idea, but depending on the worth of the coin, you may need to change it. Like 10=1 coin. Good idea though.
Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: Tittiez on May 10, 2013, 01:52:10 AM This is called inflation. I'm not that dumb. I'm thinking of it on technical terms as well though, like if the altcoin would even survive.I thought that had already been done? It has certainly already been said plenty of times. Is it maybe that it is part of decrits or that other coin that is still on the drawing boards being discussed for ages? (Netcoin?) Hmm I cannot recall any coin having actually done it yet that has been released so I guess it was just empty vapour ideas or was part of one or both of those big plans. -MarkM- I know there has been previous talk about this, but I don't think any coin has done it really well yet. If SolidCoin did, well I'm still in the mindset that solidcoin is a scam. I figured I'd make this thread now since the altcoin community seems keen on 2-3 new coins a week. Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: seleme on May 10, 2013, 01:56:22 AM What about same difficulty and same numbers of coins produced all the time? Had anyone try that?
Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: anderl on May 10, 2013, 02:00:48 AM How about increasing rate of transactions increases rewards. Or volume of transactions. The more liquidity the more reward for mining.
Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: Petr1fied on May 10, 2013, 02:20:57 AM Probably something like I suggested in the 0pticoin thread would be a good idea:
The simplest solution of all is just to make the reward be based upon the difficulty for solving the block. Perhaps just multiply the current difficulty by a factor of 20 but have a ceiling of whatever you want your maximum coin reward to be. Example starting difficulty = 0.25 / Maximum reward = 50 0TC 0.25 * 20 = 5 0TC (starting reward) Difficulty then doubles to 0.5: 0.5 * 20 = 10 0TC etc.... OK now lets fast forward to difficulty of 4: 4 * 20 = 80 0TC This is clearly over our ceiling of 50 0TC so we just change the value to 50 0TC instead. A method such as this would not allow the early adopters to horde a ridiculous amount of 0TC but it would not penalise them for coming on board early either and it's clear from the outset that the reward is based upon the difficulty of solving the block. Of course you could use any calculation you wanted, I'm just throwing an idea that I feel would be better for everyone. Even if the starting point was set ridiculously low this would still work as long as the starting difficulty not exactly zero otherwise you'd get a divide by zero error. Nods :D Might as well set diff at 0.000001 something :) Even this would work but the initial reward based upon multiplying by a factor of 20 would be 0.00002 0TC :D Of course I guess I'm biased about it being a good idea. I'll let you decide. ;) Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: markm on May 10, 2013, 02:22:49 AM Just yesterday or so I was reading in some thread here someone aying maybe the increase should be logaithmic, Reward=log10(difficulty) kind of thing.
-MarkM- Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: Nolo on May 10, 2013, 02:22:57 AM What about same difficulty and same numbers of coins produced all the time? Had anyone try that? Did liquid coin do that? I can't remember. Sounds familiar though. Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: markm on May 10, 2013, 02:26:52 AM What about same difficulty and same numbers of coins produced all the time? Had anyone try that? Did liquid coin do that? I can't remember. Sounds familiar though. I was saving my post new thread tab for later but I might just have to go ahead and post it now, hmmm... Liquidcoin is fixed difficulty, it proved this whole orphan thing, its main contribution was to show us this orphan problem we have seen in all the launches lately. Basically what limits it as more hashing joins is the orphan rate increasing, more miners means more orphans. I will go review my post I have been waiting to post now, its a new thread, about Liquidcoin. I was delaying posting it because I wanted to rake in the coins while there are hardly any miners... (Yes, it is still alive out there, as I learned last night when I fired it up. I got connections instantly.) -MarkM- Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: TruCoin on May 10, 2013, 02:31:40 AM i like this idea!!!
Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: Number6 on May 10, 2013, 02:45:47 AM I like the idea too. I also think we need to keep transaction speeds fairly fast. It should always strive for 1 minute blocks, to keep transaction quick. I think some of the ideas such as Petr1fied's multiplying rewards based on difficulty could work, but we wouldn't need caps. I also think some of the other coin's attempts at reducing the initial rewards, even sub 1 coin to start would work.
So using Petr1fied's example, start off with something like 0.25 (starting difficulty)* .1 = 0.025 coin reward. The coin would grow over time, but early miners wouldn't have any advantage. Now, some will say this is an inflationary coin, but you do need to expand the money supply to meet the needs of the people. By slowly growing the supply, it would make it more useful and help minimize the effect of large hoarders. I would try to target it to eventually get to the point where the rewards based upon difficulty * variable would keep up with the rate of the world's population. Thus an eventual target of 1 coin per person on the planet, with block rewards roughly coming out at the same pace as population growth. Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: Riot75 on May 10, 2013, 02:46:58 AM Would be interesting if someone designed a coin that would reset its difficulty after a certain number of blocks. I don't think a coin that did this though would probably last long because when the difficulty resets the value of the coin would likely blumet.
While I was typing the idea above I had another idea. What if a coin did something like Berkshire-Hathaway does with stocks. You have coin A which was the first coin mined and when it resets you start mining coin B. Ideally coin A would be valued higher than coin B. Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: Benny1985 on May 10, 2013, 02:48:54 AM I think adjusting it logarithmicly would be good.
Example: At 100 difficulty (for Scrypt), payout would be 50 coins. At 1000, its 100 coins. At 10000 difficulty, its 200 coins, and so on. Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: markm on May 10, 2013, 02:59:23 AM I think adjusting it logarithmicly would be good. Example: At 100 difficulty (for Scrypt), payout would be 50 coins. At 1000, its 100 coins. At 10000 difficulty, its 200 coins, and so on. Okay so maybe SilverCoin with Reward=25*log10(difficulty), and SilverBar with Reward=Log10(difficulty) ? I think you need log, because difficulty doubles a lot, doubling the rwards when difficulty doubles is way too huge, log seems much more reasonable. Remember its not just same miner upgrading to increase his income so he can upgrade more, its also more and more wannabe-miners entering the mining field. Log should help prevent basically just "quantitatively easing" the world into a welfare state where everyone mines, everyone gets shitloads of coins, and it takes a wheelbarrow full of coins to buy a loaf of brea....oh sorry, that was yesterday, today bread costs more than that... -MarkM- Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: defaced on May 10, 2013, 03:30:23 AM What about same difficulty and same numbers of coins produced all the time? Had anyone try that? I thought about this, but i like the difficulty change in order to keep the money supply continuously the same. With out subsidiary cuts. Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: Petr1fied on May 10, 2013, 02:13:14 PM Using logarithms is is a nice idea.
Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: paul21 on May 10, 2013, 02:23:17 PM Have there been any time based reward coins?
I.E. make 100 coins/hour, if 100 blocks are found they're worth about 1 coin each, if 1 is found it's 100 Title: Re: Altcoin Idea: Higher Difficulty INCREASES Mining Rewards Post by: 🏰 TradeFortress 🏰 on May 10, 2013, 02:25:23 PM Rewards absolutely should not be tied to difficulty. It just makes the coin really worthlessness, especially when specialized hardware develops.
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