Keynesian cryptocoin

[klain main]

Why dont we have a keynesian cryptocoin? It is a coin with money supply (M) grows and shrinks with economic activity. To do that you need some metrics or statistics from blockchain: velocity of money coins/sec (V), average of prices (P), total number of transactions (Y), all together in an equation: M=PY/V

[sdmathis]

There are a couple of things that would make that difficult.

1. It would be highly centralized.

2. It would require a large premine and sale of part of that premine in order to be able to control the money supply. The devs would need a large amount of coin to sell if the money supply needs to be expanded and Bitcoin for buys should the money supply need contracting.

I am very interested in hearing what others think about a coin where the money supply is controlled.

[East Indian]

i was planning for a keynesian coin as a pro bono. But instead of GDP, i prefer to go by only velocity. It need not be centralized.

[Fuserleer]

This is one of the foundation principles of eMunie economics, our supply expands and contracts in response to demand/velocity/volumes and other signals.  I believe we are the only project that has 1) seriously looked at it   2) been able to achieve it.

I'll skim over it here as we are (finally after 2 years of work ) going to be releasing a lot of information between now and October on this and other eMunie technologies now that the core is locked down, so look out for that detailed information trickling out.

But, in brief...

Our supply management is controlled by the system, it is not centralized in any manner.  Once eMunie launches only the network as a whole will have control over the amount of EMU in circulation, which is driven by market signals and unit valuation, with supply allocations/reductions decided upon via a network consensus.  These signals are provided by an integrated DEX (decentralized exchange), not 3rd parties, so that the network can be sure of the signals authenticity, and allow rapid control of supply.  The economics model also attempts to stabilize the value of EMU by adjusting the amount of supply in circulation, distributing new supply fairly around the network and interacting directly with the market (see below).

There is no requirement for a large initial supply allocation, in our model a small percentage of all new supply created is held by the system in "limbo" for use as a buffer.  The system reacts to pumps/dumps, short term swings by using this buffer to buy up large sells, or to sell to large buys (again via network consensus), thus reducing the price swing effect.  Because distribution of new supply is very broad, the system will generally always be the largest holder of the currency, so can cover all but the most violent of short term movements ( eg: some event causes a mass cash out where many users are selling at the same time).

Long term gradual price movements are not affected and with the buffering of short term movements, will be a better overall picture of economic health.

edit:  Clarified some points, its 5am, 16+ hour day and Im groggy

[kjadB]

Why dont we have a keynesian cryptocoin? It is a coin with money supply (M) grows and shrinks with economic activity. To do that you need some metrics or statistics from blockchain: velocity of money coins/sec (V), average of prices (P), total number of transactions (Y), all together in an equation: M=PY/V

google eMunie, might be of interest to you

[East Indian]

My plan is:



1. Velocity of money is fixed at 2.

2. New coins can be mined by anyone; but they will be released into circulation only on demand. Till then, they will stand in a Queue, waiting for their turn to be released. A register will record the coins' places in the Queue. So, every time a new coin is mined, it will register with the Decentralized Queue Register, and wait for its turn.

3. Demand will be measured by counting the transactions. Every coin should remember how many times it changes hands. Every coin should also remember its birthday - the day it is released into circulation, not the day it was mined.

4. Every coin will generate demand for new coins after transaction. Every time a coin changes hands, it will create a demand for 0.5 new coin. Thus after a coin changes hands two times, or two coins change hand once, the demand will be 0.5 + 0.5 = 1 coin; this demand will be sent to the Queue Register; the first coin in the queue will be released into circulation, and its miner can sell it.

5. Now comes the difficult part. Big Point I: Each coin will have the first two transactions of the year as demand-free - i.e., these two transactions will not generate any demand for 0.5 new coin. Subsequent transactions will generate demands for 0.5 coin and send the demand to the Queue Register.

6. Every year a coin  will celebrate its 'birthday' - the day it was released into circulation, and it will have the next two transactions demand-free. Subsequent transactions will generate demands for 0.5 coin and send the demand to the Queue Register.

7. Big Point 2: to avoid the mining rigs hogging all the mining, the coins in the Queue will have only one month's life. If they are not released within that time, they die. Thus even if someone mines one million coins and puts them in the Queue, if there is no demand within one month, they all will die.

8. Coins should not be divisible / should be divided only into 100 pieces.

comments?

[klain main]

My plan is:



1. Velocity of money is fixed at 2.

2. New coins can be mined by anyone; but they will be released into circulation only on demand. Till then, they will stand in a Queue, waiting for their turn to be released. A register will record the coins' places in the Queue. So, every time a new coin is mined, it will register with the Decentralized Queue Register, and wait for its turn.

3. Demand will be measured by counting the transactions. Every coin should remember how many times it changes hands. Every coin should also remember its birthday - the day it is released into circulation, not the day it was mined.

4. Every coin will generate demand for new coins after transaction. Every time a coin changes hands, it will create a demand for 0.5 new coin. Thus after a coin changes hands two times, or two coins change hand once, the demand will be 0.5 + 0.5 = 1 coin; this demand will be sent to the Queue Register; the first coin in the queue will be released into circulation, and its miner can sell it.

5. Now comes the difficult part. Big Point I: Each coin will have the first two transactions of the year as demand-free - i.e., these two transactions will not generate any demand for 0.5 new coin. Subsequent transactions will generate demands for 0.5 coin and send the demand to the Queue Register.

6. Every year a coin  will celebrate its 'birthday' - the day it was released into circulation, and it will have the next two transactions demand-free. Subsequent transactions will generate demands for 0.5 coin and send the demand to the Queue Register.

7. Big Point 2: to avoid the mining rigs hogging all the mining, the coins in the Queue will have only one month's life. If they are not released within that time, they die. Thus even if someone mines one million coins and puts them in the Queue, if there is no demand within one month, they all will die.

8. Coins should not be divisible / should be divided only into 100 pieces.

comments?

How can you stabilize the velocity at 2? And how do you know that 2 is good?

[monsterer]

Why dont we have a keynesian cryptocoin? It is a coin with money supply (M) grows and shrinks with economic activity. To do that you need some metrics or statistics from blockchain: velocity of money coins/sec (V), average of prices (P), total number of transactions (Y), all together in an equation: M=PY/V

The reason is that reducing supply is very hard.

[noobtrader]

i was planning for a keynesian coin as a pro bono. But instead of GDP, i prefer to go by only velocity. It need not be centralized.

youll need decentralized marketplace in the wallet to track the price of the coin,

Why dont we have a keynesian cryptocoin? It is a coin with money supply (M) grows and shrinks with economic activity. To do that you need some metrics or statistics from blockchain: velocity of money coins/sec (V), average of prices (P), total number of transactions (Y), all together in an equation: M=PY/V

The reason is that reducing supply is very hard.

maybe can only reduce the supply to minimum, or if wallet have decentralized marketplace and AI it can buy coin to reduce amount of coin in circulation... 

[loulis]

An economist told me that if someone makes such a coin he ll win the Nobel price.

[brazil nut]

i was planning for a keynesian coin as a pro bono. But instead of GDP, i prefer to go by only velocity. It need not be centralized.

You can use fixed GDP (P x Y) e.g. 100 millions coins and control the inflation by a demurrage.
e.g. if M=110 millions then demurrage should be 10%, if M=105 millions then demurrage should be 5%, e.t.c.

[Mathemagician]

I discovered a trick to calculate velocity.

Lets say there are 5 transactions

1. --> 1$
2. --> 2$
3. --> 3$
4. --> 4$
5. --> 5$

Total 15$. 15/5=3    So, there are 3$ x 1 time or 1$ x 3 times. So V=3

[koulis]

Maybe is a good idea to use metrics for the PxY from previous calculations.

e.g. PxY=100.000.000 coins, V=0.95 coins/sec, M=100.000.000/0.95= 105.263.157
next calc                                                    M=105.263.157/1.05= 100.250.625
etc

[bit1]

The economic activity could be infinite, Accordind to this idea  supply too, It sound look to fiat, The transactions are not always the same because its depend on many factors.

[bit1]

Also what drives the economy is speculation, Control money supply(grows and shrinks with economic activity), Etc.... that is something rise or fall in value and also depending on the difficulty of obtaining some people sell their work for that something "value". So who have controls about the major part  in a way have a control about to people, Simple as that. So almost people hardly work if they do not get something of value relative.

In others words you want the same effect that fiat but on crypto. It could take years if it happens.