The magic number would be correlated with long term real economic growth rate. Trying to set the money supply growth constant at 2% is likely closer than setting it to 0% yet it has the same flaw that if your number is lower than the observed monetary demand, you will get deflation, if your number is higher you will have built in inflation.
The fractional reserve system allows banks to react to deviations from equilibrium as numbers are observed
If the algo to set money supply growth rate can take in real values of what is transacted on a regular basis then it would solve the problem completely. Not sure if this is feasible.
i like the way this sounds
+1
I don't think this is feasible. I could run a script to transfer money from A to B all the time. If you are thinking of "oh, then hard code a case to ignore that", you're thinking in the wrong direction because I'll just transfer from A to [B or C or D] to [A or B or C or D].
yeah, you're right, i really didn't take into account how easy it is to game some of these systems. i was just reading a discussion
https://bitcointalk.org/index.php?topic=166302 that talks about better ways to handle transaction fees, with a focus on how to prevent mining pool collusion from gaming that system.
with that said .. i never could have imagined someone (Satoshi) creating a system like bitcoin in my wildest dreams; so if someone (or more likely a team) with that same sense of vision would tackle this problem, it could certainly materialize into the next great coin
Hello, I'm Etlase2, and I am tackling this problem. One way to ensure transactions remain fairly honest is to charge a percentage fee rather than a flat fee or a fee based only on bytes/coin age. This is possible when you use an account ledger system instead of a transaction ledger. For this and a million other details, click the link in my sig.
