[snip]
8. I don't have an issue with a company giving me some of its shares for free. However, Karma LLC should not piggy back on Karma's announcement that it might be going to PoS. The entities should be kept as separate as possible to prevent the value of Karma being pegged against a start-up company.
Sorry, I don't understand. Would you care to explain?
The way Karma price could be pegged against the Karmashares LLC price is you are making a direct way to value something (Karma) which otherwise has no value. Obviously this doesn't matter too much anyways if you always allow people to continue to invest in Karmashares LLC with Karma. I'm sure you know my position on Karmashares LLC vs Karma.
Also, I think we should take this transition opportunity to review everything about the coin, including but not limited to transaction fees, block times and everything that can be changed about a coin. Obviously massive changes like this should only ever be done once, so everything should be reviewed now.
Because I made so many points in my original post, I'll expand on the most important three:Interest being too high.We have to remember that Karma is primarily a currency.
1. I consider the interest to be similar to inflation, only the holders purchasing power remains the same (all other things being equal). For anyone not holding the currency it would appear as if the inflation rate is over 6%. The inflation rate should be more in line with developed economies currencies at around 1.5-2.5% per annum. People perceive a currency with a high level of inflation as not stable because it doesn't hold value.
Of course I'm taking an extremely long term view here (decades) because the main price driver in all crytocuncies for at least the next ten years will be speculation because Karma has no value unless people give it one, which is also true about fiat currencies. $100 isn't worth anything unless I can swap it with somebody for something. It will always be this way for crpytocurrencies because there is no centralised government increasing and decreasing the flow of the currency to keep it stable. However over time as more people assign a value to cryptocurrencies the more stable they will become against fiat currencies, good and services. At this time speculation will decrease because other investments will have higher possible returns, speculators will over time sell out to people who are using the coin as a currency.
2. If the interest rate is too high not enough Karma will be kept on exchanges. This may not sound like an issue for speculators because it means it is far more likely the currency will increase in value (less to buy on the sell side to push up the price) however it will also make the currency less stable...less like a currency.
3. If the interest rate is too high it may encourage bad practices by exchanges. Exchanges might keep funds in less secure wallets to try to take advantage of the interest.
The decision shouldn't be based on price.It just doesn't look good if the decision is being made on price. The decision should be made based on what will be the best for Karma in decades to come. Ok, I just wanted to say this again not explain it.
There should be no coin cap.If inflation works up to the "market cap" it should work beyond it. There is no need to make a two stage process three stages. Either go PoS with no inflation or go PoS and keep inflation. I believe PoS and keep inflation is better because it is more realistic compared to fiat currencies. However this point only applies if the interest is below 3%. Also if the inflation is removed the network may lose some of its security (depending on how exactly the PoS works).
The main advantages of PoS are:1. The network is more secure;
2. The network costs far less to run (I'd call "saving the planet" good karma); and
3. It encourages people to take their Karma off exchanges unless they plan on selling it in the near future. There is over 2 billion Karma on the market of a single exchange at the moment, probably billions more not on the market just sitting in the exchanges accounts. I don't like concentrations of Karma because it won't take much in the wrong hands to crash its price.
The disadvantages of going to PoS are:1. It could be completely screwed up, as per my limited understanding of the transition process, moving to PoS would be almost like 51% attacking Karma ourselves. We are doubling the amount of Karma and saying half of it is worthless now because these guys say so.
2. People with mining rigs that don't want to buy coins can no longer mine for them. People can mine other coins and then purchase Karma however some people will be unwilling to take this extra step. Mining is becoming harder and harder for individuals so I think this point will become less valid over time.
I think the advantages are greater than the disadvantages. I'm willing to risk losing the value of a few Karma now if things go wrong to see Karma survive long into the future.
Chargin.
i like the way you think. i do not agree with everything but you make some good points. most importantly you challenge us. You should be more involved and make sure you use your well thought opinions and experience to either contradict or defend some of our goals. The more people like you get involved the more information we have to use choose practical solutions as they emerge.
To everyone reading this: this is your coin as much as ours. never forget that. we are trying hard to create a voting system where everyone has a say and votes in their opinion. help us make better decisions by speaking out.
