deflation coin

[steelhouse]

1) 50,000,000 pre-mined
2) sell order 500,000 for 1 btc
3) buy order 500,000 for 1 btc
4) 2% transaction fee.  1% deleted, 1% to miners.  Thus a sale of 300 DC would result in 3 DC Being deleted with 3 DC going to miners.
5) minimum fee 0.01, auto-adjusting
6) merged mining
7) 1 mining reward
8 ) #1-#3 can be removed if we split and use the blockchain of an existing coin.

[1713984972]

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[1713984972]

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[1713984972]

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[1713984972]

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[xzion]

I will bet you 8,000 ixc and 2 btc. 

don't do it guys, these stakes are huge! In two years when the bet is actually realised, that might be like, 50 bucks!

[maaku]

Bitcoin is not suffering 30% inflation--that is bad economic analysis. You are failing to account for increases in bitcoin-GDP and velocity.

That said, one bitcoin went from around 11 USD on August 15th, to around 4 USD today. That's a decline of 64% over just two months--or a -99.8% annual return. Which shows that 1) extrapolation from trending market data is pointless, and 2) there's a lot more going on here than monetary base growth.

[MaGNeT]

It's perfect the way it is

[maaku]

Please keep in mind that on January 01, 2011 BTC was at 0.37 USD and is still a  1000%+ gain for the year.

... 1) extrapolation from trending market data is pointless, ...

[maaku]

Ok, what do you mean by "inflatoin"?

Are you talking about price inflation or BTC/USD? That's what I figured you were talking about since the monetary base is increasing by approx. 30%/year right now due to miner rewards, which matches your magic number in the OP. But inflation only equals monetary growth if velocity, gdp, and overall prices remain otherwise constant.

Or are you talking about block chain growth? If so you're a little late to the discussion--there are technical solutions that are being discussed and implemented right now in bitcoin clients. Blockchain growth is really a non-issue.

[norulezapply]

This is horrible!  Bitcoin generation should be halved every 21,000 blocks. What is the chance litecoin last for more than 1 month, about 5%.

Ix/I0coin had a similar idea. The block generation halved twice as fast as bitcoin (because of higher rewards). Look how well that worked out. It lasted, what, 2 and a half weeks?
10,000 Ix/I0coin can barely buy a pizza these days.

We need a chance for a chain to experience low inflation or even deflation.  none of the chains have deflation

Bitcoin and other chains do have inflation. It seems to me that you're impatient and just want the price to shoot up so you can sell all your coins at max value without waiting for real deflation to kick in.

[norulezapply]

Nice quad post..

The team are already working on a quick-start option for people that don't want to download the entire blockchain. But yeah this seriously isn't the main problem anyway.

[Lolcust]

Yes, yes, a community of several thousands alt-coin enthusiasts is destroying BTC lol.

Also, since when is deflation necessary for a usable currency ?

[maaku]

Also, since when is deflation necessary for a usable currency ?

Indeed, quite the opposite. Only a fringe economist would tell you that deflationary currency is beneficial for trade.

[Lolcust]

Okay, now I am reasonably confident this is a case of so-called "trolling".

Nice job, sir.

[tacotime]

There is no reason to do this

Make the block size a function of the system hash rate and have it always decreasing over time (for instance, if 1mh/s total hash rate block size should be 1 coin, but if 10mh/s block size should be 10 coins, then the next block should be 0.998 coins or 9.98 coins, etc).  All you need is rapid but extremely small deflation to make this work, having all the coins mined in half a year will fuck everything up economically and probably cause centralization of a currency.

[tacotime]

Just think how famous someone would be to create the first deflationary currency.  You would be more famous than the president and definitely would be getting twice the women too.  you would be put on the record books and wikipedia as being the king of deflationary currencies.

Better yet, make a deflationary currency that is mined completely in 24 hours and premine for the first 20.  You'll be a deflationary GOD

[localhost]

It is 2 separate problems that need to be fixed.  Solidcoin basically figured it out somehow.   He was able to compress the entire solidcoin 1 into 5 blocks.  So what I propose depending on difficultly, is for the software to automatically compress the deflationcoin block chain every XXX blocks.  Now I don't know whether this should be 1 block, 5 blocks, 1000 blocks, 5000 blocks.  Thus a new block chain is started and the old blockchain can be deleted, after everything is verified of course.   Now it might be possible to do this every block, thus all you have is a ledger.  So it might be possible to have a block chain less than 10 mb in size.  This would be good for smartphones.  It also may lead to speed and end indexing.  Open transaction may do something similar.

Managing to do this would be pretty neat indeed. It doesn't need to be as extreme as fitting the whole chain in 10MB, but I don't know, "archiving" blocks older than, say, 1 year would be nice.

[steelhouse]

update.