Hi, this is my first post in a forum. The reason why I have registered is to ask a question... I hear a lot about the pumps and dumps and how much it hurts the coins.
This is just an idea, and I haven't thought of a full algorithm, but I could do it too, and make some simulations.
Would it be possible to create a coin that, after every transaction from account to account, it increases the amount of coins available on the market? So for example, if I put 10mil dollars into a coin, I get an increase of the same amount. That way, the coin price would stay the same. To ensure that the growth is steady, the new coins should have a decay rate so that price of a coin has a steady increase? This way, it would be possible to increase the value of a coin once the dump occurs, so it would force people to HODL onto their coins.
Just wondering, and would like to hear your opinions.
the problem with what you've proposed here is that whilst you can expand the supply of coins when demand goes up, you can't reduce the supply of coins when demand goes down (not to say supply can't be reduced, just what's been suggested here doesn't imply that it can).
I did once try running some calculations on a hypothetical coin that would delete coins used in transaction fees and use variable block rewards to keep volume at a fixed rate but the problem is that cryptocurrencies regularly go up or down 25% per week, so you'd have to reduce the supply of coins by a huge amount whenever demand drops. the only way this hypothetical currency would work is either have ridiculously high transaction fees or run the risk of constantly devaluing itself too much. Decreasing the value of each individual coin is fairly easy but increasing the value is much harder.
If you wanted a centralized currency that increases in value, you could copy tether (central exchange buys and sells coins at a fixed value) but use something like transaction fees to slowly reduce the supply and push the central exchange price up accordingly but this would only be as much increase in price as there is decrease in coins so higher transaction fees would be needed for higher growth in value.