The features of this coin are amazing. 15 sec transaction time .. just wow.
The only thing that worries a little bit is the 2% inflation. Wouldn't it de-incentivize people to keep money in Skycoins? I certainly do not want my money to lose 2% of value a year. Basically, i would be forced to store the money in other coins. For instance, there is a coin that gives 3.8% interest a year, which gives ~5.8% difference when you combine it with Skycoins inflation.
The inflation is capped at 2% per year. If you do not think a particular project will increase the market cap of Skycoin more than what it cost everyone in inflation, you can vote against it.
If inflation works as intended, each dollar spent through inflation should create multiple dollars of Skycoin market cap for Skycoin holders, by driving the price up. So if used correctly, the inflation will cause deflation, not inflation in the Skycoin price.
The reason we added inflation is because of Bitcoin-qt. The Bitcoin community has billions of dollars but the default wallet is horrible. It is so bad that it is probably the worse piece of software created since 1995. I always wonder "If we have all this money, why cant we bring in a designer? Why is it so poorly designed? Why does it have all these bugs and security problems? Why is it so ugly and difficult to use?".
The Bitcoin community collectively has billions of dollars, but few people spend their own Bitcoin to improve Bitcoin. We needed some mechanism to ensure that improvements to Skycoin are funded.
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Self Governance:
The inflation is the financial part of a system of governance that allows the community to collectively deploy resources against threats and to pursue opportunities which will increase the value of Skycoin.
If governments begin censoring Bitcoin clients from the internet, the Skycoin community might decide to fund a massive number of open source projects to improve security and decrease the ability of governments to identify and block Bitcoin/Skycoin traffic. They might even fund a darknet or peer to peer mesh network running on software defined radio.
The inflation will ensure that development is well funded and survives the current development team.
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Voting Protocol Draft:
There is a simple site like kick-starter or reddit where people can post projects. We want wiki functionality and discussion threads for each project. The website backend should be in Golang or Python.
Everyone who wants to vote puts a hash into the unspent outputs for coins they hold. The person who knows the preimage for the hash can claim the vote shares for that output. Vote shares can then be applied towards projects.
There are better ways to do it, but this can be up and running extremely quickly.
