In short, I think everyone would agree that if there were an algorithm that could capture the dynamic supply based on demand issue and keep the target time at two minutes then assuming the algorithm was thoroughly tested and proven stable we would use it.
But something like this has been a 'holy grail' PoW algo for a long time and I don't think there is even such an algo in an alpha testnet phase, let a alone ready for production.
If something like this can be done it would be awesome, and be a big breakthrough in cryptocurrency. If people want to start a project designing such an algo and testing it out on a new Pfennig chain, I'd support the project as best I can.
I don't think a 'demand' based algo is possible without centralizing to some extent.
How do you even really determine demand anyway? Presumably a higher demand causes the price to increase. And a lower demand causes the price to drop. Hence the only way to really make an educated guess as to the current demand of bitmark is through its price or buy / sell volumes.
The only way the code could determine the movement of price and volumes would be running through a dedicated bitmark price api - or directly to exchange apis. Both are fraught with problems - for example what if the bitmark price api was DDOSed. Plus on a relatively thin market this is easily gamed. Sell down hard, drop difficulty then mine up more blocks etc...
I think there are reasons that the current difficulty algos are in place - because they work and are more or less fail safe. The KGW works very well and to this date I am unaware of anyone successfully exploiting the time warp issue.
When demand is low, production must slow. Currently mining produces a much more reasonable ~500 BTM per day, a tiny percentage of the planned emission. For the currency's longevity this must be maintained. When demand raises, production will naturally increase to the planned emission. Here is our BTM Supply: 922860 BTM, and we had planned: 1732540 BTM - there is 809680 less BTM in the world.
Agreed, a slower release of coins would be better. However this is only currently happening by mistake not by intent.
Would it not be better to intentionally drop the block reward and fix the difficulty swings? Then mining would be more consistent, and multipools / centralized farms would not have the advantage. I have seen this in many coins before and the KGW (or some variant) fixes the problem very well.
I would also invite discussion on whether confirmation time is an issue or not, I know for a fact that outside of a few people trading, the only usage of BTM is to pay for hosting at Crypto Cloud Hosting, and they do not mind the slow confirmation. Thus, I ask, who are the slow confirmations actually affecting?
If confirmation times are very slow new services will not come on board. So this is a circular argument to some extent. There are no services so why does confirmation time matter? New services will not come because the confirmation times are too slow... etc etc.
Not trying to troll, I just think all these problems - the difficulty swings, block rewards and confirmation times can be fixed with a very simple update. Add the KGW and drop the block reward. I would hate for these very minor, yet annoying, issues to get in the way of the great goals and progress bitmark is making on the marking project etc.
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