Money Supply and Reward

[stasis-crypto]

I was talking to a friend of mine who is an economics major, and we had some conflicting ideas about this.

Let's say there is a crypto that has a fixed size of 20 million coins, and that it linearly increases in network hash rate.
This would mean that the difficulty increases at a similar rate. With that being said, to stabilize the coin's emission, would it make more sense to:

* Lower the reward when the hash rate is low
   * Decreases rate of emission, stabilizing price of coin (as there is less being generated, pushing back date until all coins are mined)
      * Short term stabilization, because as soon as the hash rate increases, the reward will go up (causing rate of emission to increase, devaluing currency)

OR

* Raise the reward when the hash rate is low
   * Thereby incentivizing new miners to come and mine and stabilize hash rate
      * More miners = more difficulty = more value of coin
      * Does not stabilize price, because if reward decreases with higher hash rates, miners will have less of an incentive
         * Long run: can possibly hurt price because, like most coins, is not profitable unless difficulty is low

I obviously argued for the first, because if a coin with that structure is added to a multi pool, or profit-switching pool, it will maintain being profitable (via jacking up rewards in relation to difficulty).

What are your thoughts?

[stasis-crypto]

What are your thoughts?

This will go over here about as well as a 10MB block.

Haha, you seem to be right. Plenty of views. No replies.

[juston33]

I obviously argued for the first, because if a coin with that structure is added to a multi pool, or profit-switching pool, it will maintain being profitable (via jacking up rewards in relation to difficulty).

[memai]

I really dont understand what is "Reward" in mining altcoins. Who/What prescribed it ?

[H.W.Z]

I really dont understand what is "Reward" in mining altcoins. Who/What prescribed it ?

Let's say the reward for  one block is 25 altcoin! If you mine one block, you will get 25 altcoin as reward!

[Undermood]

Let's say there is a crypto that has a fixed size of 20 million coins, and that it linearly increases in network hash rate.

it cannot linearly increase in net hash otherwise the price will be crashing. We should set the up floor based on the year or month! And the increasing rate of block reward should adapt to the hash rate,  it will be lower when the hash rate increases.

[AtheistAKASaneBrain]

I really dont understand what is "Reward" in mining altcoins. Who/What prescribed it ?

It's the same as mining Bitcoin, but you get the respective altcoin you are mining instead of Bitcoin... pretty simple?

[loan4]

I am, too. Until now, I still don't know what is money supply and reward . Hihihihi