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Author Topic: Using difficulty to get constant-value dev fees?  (Read 102 times)
zawy (OP)
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December 25, 2017, 08:13:03 PM
Last edit: December 27, 2017, 02:57:39 AM by zawy
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Has anyone used difficulty to get constant-dollar developer or node fees? Difficulty is exactly proportional to network hashrate, and network hashrate is closely proportional to coin price.

Say a coin is currently $1.23 and someone wants to get a fixed income from the coin like $0.01 each time something occurs. To achieve this they could use a constant that is multiplied by the difficulty:

fee = 0.0123 / difficultyat$1.23_per_coin * current_difficulty =~ $0.01

Dollar value here is constant-value relative to when the ratio was determined (when difficulty was at $1.23). If hash power is not able to keep up with coin price (which is a temporary effect), the value would be larger than expected. Otherwise, the real-world value slowly decreases as hashing efficiency increases, which may be a desired effect if it is for dev fees because software gets outdated. But Moore's law has gotten very slow for computers. Hashing should get closer to being a constant hardware cost per hash.

Also, electricity is more than half the current cost of hashing and could soon be 3/4 or more of the cost. Worldwide electricity cost is very stable and possibly the best single-commodity measure of constant value.
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