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July 17, 2012, 05:30:27 PM
Last edit: July 25, 2012, 03:52:10 AM by NASDAQEnema |
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An economy is made of earnings, savings, investment, and trade. We don't have the time to wait for the unconscious market process to bring these forth. We have to build the kernels for these aspects and then protect them until they mature. What we're proposing is an interface where the backend is any coin you want and the front end is an economic internal combustion engine. The backend coin defines the limits of the coin interface system and never allows the dynamics of the system to generate more coins than the naked coin would. Every altcoin has modified the rules for one or more of the major aspects of coins, the generation target, retarget time, difficulty, total coins, block reward. As long as no more coins are generated than the naked coin would, all these aspects may be modified.
The total number of coins is fixed to the backend coin, the coinbase.
The generation depends on the actual offered hashing resources.
The retarget time depends on the the average of the projected time until all the targets are achieved.
The block reward depends on the generation confidence (block hits in a duration).
A complete economic model includes earnings, savings, investment, and trade.
Each of these is a relation between 4 terms
reference term = anchoring term * (increasing term / decreasing term)
For earnings we could have:
reference term = next generation target / current generation target
anchoring term = feedback loop size / average feedback loop size
increasing term = trade rate / trade target
decreasing term = income rate / average income rate
As more people trade the system generates more blocks.
As more income is earned the system doesn't need to generate as much.
For investment:
reference term = next difficulty / current difficulty
anchoring term = feedback loop velocity / average feedback loop velocity
increasing term = generation rate / generation target
decreasing term = association rate / average association rate
As more people generate blocks the system raises the difficulty.
As more people interact in one to many relationships the difficulty is reduced.
For savings:
reference term = next trade target / current trade target
anchoring term = feedback loop number / average feedback loop number
increasing term = block reward / block reward target
decreasing term = storage period / average storage period
As more coins are stored the trading is induced to increase.
As more trading occurs in the same space trading is reduced.
For trade:
reference term = next block reward target / current block reward target
anchoring term = feedback loop resonance / average feedback loop resonance
increasing term = retarget time / retarget time target
decreasing term = hash rate / average hash rate
As local economies accelerate neighboring economies the block reward goes up.
As the hash power increases the block reward goes down.
No demurrage.
No new blockchains needed.
Features can be added to any coin without creating a new fork.
Even if scam coin were legit, now it's obsolete.
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