Possible idea for a new crypto currency

[achillez]

Hi all,

Would like to bounce an idea off you for a new crypto currency named "DIVCOIN". I haven't fully vetted this out so feel free to shoot holes through it .

General concept is similar to bitcoin, limit the number of coins to a pre-determined number say 25 million (+dividends) after 10-20 years. The big difference with this new proposed currency is that miners coins can be used to earn additional % of subsequent coins that are earned through subsequent mining. The idea being that you can mine X coins and similar to stock dividends earn a % for holding onto those coins.

The proposed high-level algorithm is as follows:

1) Miner A generates 50 coins 
2) Miner B generates 50 coins
  - Miner A receive +1 coin for every 50 coins generated for every 50 coins they current hold (or a Dividend of 2% per coin)
3) Miner C generates 50 coins
  - Mine A and Miner B receive +1 coin for every 50 coins they own

What I think makes this system compelling is that people are rewarded for not only "mining" coins but also for holding onto coins and supporting the overall economy.
It also gives that "cool" factor that you can walk away from your coins for a couple days / weeks, and earn dividends off them.

One technical item that needs to be overcome is effectively distributing the dividends for transactions in-flight, and w/out greatly increasing traffic overhead. I think I have a mechanism in place to solve this.

So what do folks think, would this be an interesting concept? Are there any other technical issues that would be encountered with this approach?  Has this already been done before and I'm reinventing the wheel?

If there's a lot of interest I'll start working on this right away. If no... well I'll still work on it but at a much slower pace

(donations for this idea is always very welcome and will help speed up the effort )

[Sunny King]

It already works like this more or less in ppcoin.

[sd]

You want the coins flowing though the economy, you don't want to give miners an even greater reason to horde.

You have taken the single biggest problem with BitCoin, the reward for hording, and made it many times worse for no benefit whatsoever.

[Sunny King]

You want the coins flowing though the economy, you don't want to give miners an even greater reason to horde.

You have taken the single biggest problem with BitCoin, the reward for hording, and made it many times worse for no benefit whatsoever.

Maybe, however in ppcoin the proof-of-stake generation serves an important role of securing the network, so unlike OP's proposal, it's earning through work and risk-taking, not reward for hoarding.

[achillez]

Heh - ok I didn't realize hoarding was such a big problem with the miners. I assumed hoarding would raise the prices and hence motivate the miners to sell at some point. If that's not the case then it seems the DIVCOIN idea might not fly well at all.

thanks for the feedback