The charts were part of a design to a control system that will allow faster and more accurate adjustments of the difficulty.

If bitcoin protocol is going to start tracking interest rates in terms of numbers of blocks mined its a bit more important that the network stays at a 10 minutes per block rate.

To those of you wondering why I'm posting these graphs, heres a little hint as to my motivation...

Having a little fun at the moment



Figure 1. Frequency Characteristics




Figure 2. Impulse Response (Broadcom logo, dont let the exCEO know about the silk road)

You have a very peculiar understanding of how a business operates. You might want to study "accurral based accounting" and "net payment terms" to get a better idea of how business works.

Essentially, there is a constant flow of money in and out of your business. If this is not the case, you are probably not running a very successful business.

You shouldn't have much of a "purse" and if you do it should be put into investments, not your checking account.

Demurrage works well for people with this style of operation, which is most successful people.

Your biggest expense in running a business, as always, will be other peoples time -- the cost of labor.

As I said earlier, with the current design it takes 16 years for a freicoin to halve in value. If it takes you longer than that to decide what to do with your money may I suggest a funeral plot? You can't spend the coins from below the ground. Most people will not notice the demurrage.

However, I think you will find the expectation of decreasing value will completely change the way people use this currency. If I know anything about markets its that they trade more on expectations and momentum than rational fact.

I don't think the cross section of people that would be interested in this proposal, and the people interested in bitcoin would be very large. I certainly don't have any bitcoin. My only real interest in either is completely technological (i look at them as tools). However, if this project does everything they say they want to do I think many more people in the community will find this worthwhile.

If the aim was to create a simple clone of bitcoin with demurrage, sure. Don't you think that's aiming pretty low?

I would hope this currency becomes valuable because it is better than bitcoin (because it builds on it), not because it only copies it.

You're probably right... That  long string of numbers was me typing approximations (365.25) into calc.exe. only the best tools here

That wouldn't have the effect you think it would...  

You need this formula

Compound amount (single payment)  

return this.nValue *= (1 - i)^(nHeight-this.blocknumber);   // i is demurrage rate

annualized demurrage rate = 4.4/100=.044

i=(.044 interest per year)/(365.24 days per year*24 hours per day*6 ten minute blocks per hour)= 8.37e-7 interest per 10 minutes block

let me know if you see any mistakes

You can play with the effect here...

http://www.ajdesigner.com/phpdiscountfactors/single_payment_compound_amount_equation.php

put I in as "-.00000083713850837138508371385083713851" and period as number of blocks to see how much your currency multiplier would work through time )


maaku choose 4.4% because he likes irrational numbers...  Using the generally accepted "rule of 72 " (we don't use the rule of 69 because that is a naughty number) we see it will take 16.363636363636363636363636363636363636363636363636363636363636363636363636363. .. years to halve your money

I don't think you have carefully considered the problem of synchronizing a system like you propose.

For instance, it would be possible to make a system where the difficulty of mining is constantly adjusted to global network hashing power, but a system like this would be very difficult to synchronize. The nodes couldn't agree on what blocks to accept or reject. Piecewise definitions of difficulty and generation function are unfortunately a consequence of the peer to peer network.

Wow, that's a brilliant find. Very succinct and accessible.

The first github commit (25 kLOC) would suggest that it took one person 70 months to develop, or 6 years, using the simple COMOCO model. This is entirely possible for one person to do, provided they are in some stage of their life where they can work on a project like this for an extended period.

The characterization that the client is missing security exploits is not true, nor does it remain true. I don't know why this security researcher would make this representation, but in my experience the statements of computer security people deserve scrutiny.

For example, an early significant exploit in the code allowed an attacker to generate 184 billion bitcoins.

It's clearly not perfect, but its better than anything that existed before it -- I'm sure we'll all agree to that.

I'm going to assume that LoupGaroux is feeling injured because his first post, the only one not filled with hateful invective, was ignored. So, assuming good faith (a real stretch at this point), I'll attempt to answer his criticisms.

How? You haven't specified how these definitions are exclusive.

Yes, the blockchain structure is an authority, even in Bitcoin. Because you disagree with what is being accounted for by the blockchain does not invalidate the idea. I think the blockchain structure authority is greatly preferred to some other forms of authority.

Actually there is an economic "law" that states the exact opposite. It's called Gresham's law, but it doesn't apply here because this currency exists without a state setting its exchange rate. However, it suggests that in practice nobody would like to spend their more valuable currency.

Sorry, but just as capital has time-value, so too does the value of your work. Your desire for a system where its possible to coast off of personal wealth without contributing doesn't exist anywhere and can't exist. As the Bobby Dylan song goes "you gotta serve somebody."

I don't think you seem to understand this concept very well. He's not offering to develop a speculative, get rich quick asset that will "make you more money." He's offering to make one that's better for exchange than Bitcoin.

It's simply not a necessary condition. If you really want to understand more I'd suggest picking up this book.

http://www.amazon.com/Debt-The-First-000-Years/dp/1933633867

Or watch this interview with the author

http://www.youtube.com/watch?v=SnOqanbHZi4

http://www.youtube.com/watch?v=L5c5mZhDs4U

The donation link is here http://www.indiegogo.com/freicoin?a=784965

A matter of perspective: from your perspective, too much. From mine, not nearly enough.

I already have.

smoothie: I'd be more likely to question the motivation of a cryptocurrency developer who doesn't ask for money.