Could someone explain Proof of Burn to me?

[Nullu]

I think I understand the concept behind it; by burning BTC for x amount of currency y, you're setting a market value of y based on the value of BTC.

However, if you're burning BTC..doesn't that mean BTC is being deflated and the currency will increase in value due to decreased supply as demand increases?

Isn't that a better deal for BTC than it is for PoB Coins?

Maybe I'm not understanding it correctly.

[FrictionlessCoin]

I think I understand the concept behind it; by burning BTC for x amount of currency y, you're setting a market value of y based on the value of BTC.

However, if you're burning BTC..doesn't that mean BTC is being deflated and the currency will increase in value due to decreased supply as demand increases?

Isn't that a better deal for BTC than it is for NXT and other POB Coins?

Maybe I'm not understanding it correctly.

In a nutshell, as a miner you need to sacrifice a coin to get the mining rewards.

Which kind of makes sense.

So rather than sacrificing energy to get you coins, you sacrifice coins that you already have.

So I guess it works like satoshi dice,  send some coins to the system ever so often,  and you could be the lucky winner who gets the miners subsidy.

I do like the idea because it does mirror mining activity more accurately than proof of stake.   Why should some fat cat make more than a newbie?  The fair way is,  if you burn 100 coins,  you have 100 times larger chance of receiving the mining subsidy that someone who burns just one coin.

[Nullu]

I think I understand the concept behind it; by burning BTC for x amount of currency y, you're setting a market value of y based on the value of BTC.

However, if you're burning BTC..doesn't that mean BTC is being deflated and the currency will increase in value due to decreased supply as demand increases?

Isn't that a better deal for BTC than it is for NXT and other POB Coins?

Maybe I'm not understanding it correctly.

In a nutshell, as a miner you need to sacrifice a coin to get the mining rewards.

Which kind of makes sense.

So rather than sacrificing energy to get you coins, you sacrifice coins that you already have.

So I guess it works like satoshi dice,  send some coins to the system ever so often,  and you could be the lucky winner who gets the miners subsidy.

I do like the idea because it does mirror mining activity more accurately than proof of stake.   Why should some fat cat make more than a newbie?  The fair way is,  if you burn 100 coins,  you have 100 times larger chance of receiving the mining subsidy that someone who burns just one coin.

Ah, so burning doesn't guarantee you get coins, in the sense that solo mining doesn't guarantee you'll mine a block?

[FrictionlessCoin]

I think I understand the concept behind it; by burning BTC for x amount of currency y, you're setting a market value of y based on the value of BTC.

However, if you're burning BTC..doesn't that mean BTC is being deflated and the currency will increase in value due to decreased supply as demand increases?

Isn't that a better deal for BTC than it is for NXT and other POB Coins?

Maybe I'm not understanding it correctly.

In a nutshell, as a miner you need to sacrifice a coin to get the mining rewards.

Which kind of makes sense.

So rather than sacrificing energy to get you coins, you sacrifice coins that you already have.

So I guess it works like satoshi dice,  send some coins to the system ever so often,  and you could be the lucky winner who gets the miners subsidy.

I do like the idea because it does mirror mining activity more accurately than proof of stake.   Why should some fat cat make more than a newbie?  The fair way is,  if you burn 100 coins,  you have 100 times larger chance of receiving the mining subsidy that someone who burns just one coin.

Ah, so burning doesn't guarantee you get coins, in the sense that solo mining doesn't guarantee you'll mine a block?

Yes, like mining in real life doesn't guarantee that you find any gold!


It is interesting because unlike PoS,  where the money gets hoarded,  proof of burn, the money gets spent.    Also, interesting is, how is this money spent,   does it go to someone else or does it just go nowhere?


Because in the real world, when you burn electricity, the power company still gets paid.

[gatra]

and how do you control that only one block is created every 10 (or whatever) minutes?

[gatra]

bumpity

[FrictionlessCoin]

maybe a variant of the qubids model might be interesting too.

I don't know though how qubids actually ends an auction.

[pedrog]

I think I understand the concept behind it; by burning BTC for x amount of currency y, you're setting a market value of y based on the value of BTC.

However, if you're burning BTC..doesn't that mean BTC is being deflated and the currency will increase in value due to decreased supply as demand increases?

Isn't that a better deal for BTC than it is for NXT and other POB Coins?

Maybe I'm not understanding it correctly.

In a nutshell, as a miner you need to sacrifice a coin to get the mining rewards.

Which kind of makes sense.

So rather than sacrificing energy to get you coins, you sacrifice coins that you already have.

So I guess it works like satoshi dice,  send some coins to the system ever so often,  and you could be the lucky winner who gets the miners subsidy.

I do like the idea because it does mirror mining activity more accurately than proof of stake.   Why should some fat cat make more than a newbie?  The fair way is,  if you burn 100 coins,  you have 100 times larger chance of receiving the mining subsidy that someone who burns just one coin.

How does the genesis block gets generated?

[gatra]

Why should some fat cat make more than a newbie?  The fair way is,  if you burn 100 coins,  you have 100 times larger chance of receiving the mining subsidy that someone who burns just one coin.

but that's not fair... fat cats still make more: they have more to burn, so they would get all the coins

[FrictionlessCoin]

Why should some fat cat make more than a newbie?  The fair way is,  if you burn 100 coins,  you have 100 times larger chance of receiving the mining subsidy that someone who burns just one coin.

but that's not fair... fat cats still make more: they have more to burn, so they would get all the coins

Well, then you don't make the buying power linear.   In other words rather than 100 coins giving you 100 times larger chance, make it 50 times larger chance than one coin.    This allows the masses a bigger chance at the coins.