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PoS Update
We are very close to the PoS switch. As such I want the community to have the first look at the white paper explaining the algorithmic monetary policy that Nautiluscoin will employ. Keep in mind this document is written for the general public - the specs will be released soon.
Abstract
As pointed out by the Bank of England in its Quarterly Bulletin 2014 Q3 “The Economics of
Digital Currencies”, Bitcoin faces three challenges:
1) Volatility 2) Sustainability of Low Transaction Fees 3) Limitations of a Fixed Money Supply.
Nautiluscoin was designed to address and eliminate the challenges faced by Bitcoin. This
document serves an introduction to the three pronged approach employed by
Nautiluscoin to reduce volatility, maintain low fees and regulate money supply.
The Nautiluscoin Stability Fund seeks to reduce volatility, while the Proof of Stake
algorithm does away with the need for expensive mining equipment. Additionally, at the
heart of the Proof of Stake reward calculation is an algorithmic monetary policy that
adjusts money supply with demand.
Digital Currencies”, Bitcoin faces three challenges:
1) Volatility 2) Sustainability of Low Transaction Fees 3) Limitations of a Fixed Money Supply.
Nautiluscoin was designed to address and eliminate the challenges faced by Bitcoin. This
document serves an introduction to the three pronged approach employed by
Nautiluscoin to reduce volatility, maintain low fees and regulate money supply.
The Nautiluscoin Stability Fund seeks to reduce volatility, while the Proof of Stake
algorithm does away with the need for expensive mining equipment. Additionally, at the
heart of the Proof of Stake reward calculation is an algorithmic monetary policy that
adjusts money supply with demand.
Enjoy!
BK
nice, even i can understand that paper, it's been written for humans
thanks BKIts pretty much what I expected. BK somewhere 100 pages or so ago wrote that he wanted to link the interest rate to the economy. Economy in this case had to be the transactions.
This system makes more sense than the other variable interest rate systems. Those were mainly created to get people to stake their coins. While that is important, they were not motivated by any economic intention. Didnt really work out well anyway as we could see with vrc as the benefit from actively trading is much bigger than 5% interest rate per year (at least everyone of us likes to think that).
The real question will be if BK can succeed to bring in investors from outside cryptoworld, which wont be easy. POS+NSF will probably be one of the selling points.
We could start a discussion about the economic theory behind it, but it is 2am here. Overall this is a far better whitepaper than what we mostly get to see in cryptoworld.
This system makes more sense than the other variable interest rate systems. Those were mainly created to get people to stake their coins. While that is important, they were not motivated by any economic intention. Didnt really work out well anyway as we could see with vrc as the benefit from actively trading is much bigger than 5% interest rate per year (at least everyone of us likes to think that).
The real question will be if BK can succeed to bring in investors from outside cryptoworld, which wont be easy. POS+NSF will probably be one of the selling points.
We could start a discussion about the economic theory behind it, but it is 2am here. Overall this is a far better whitepaper than what we mostly get to see in cryptoworld.
nicely said
