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Anyone can make a cryptocurrency. They surely have to deal with the very clear and necessary risks associated with creating what will likely be an unregistered

Anyone can make a cryptocurrency. They surely have to deal with the very clear and necessary risks associated with creating what will likely be an unregistered security. Adoption is another story entirely. The cryptocurrency scene has now gone through its 3rd or 4th wave of sh#tcoins and scams, so it's highly unlikely that there will be adoption at a level to be concerned about, unless the token provides real value. Existing tokens had to set their capital controls in the Genesis event, and those tokens that print money haphazardly, won't last. Token economics are delicate, and difficult to get right. In the case of Bitcoin, new tokens can only be minted according to the existing rules, which shift towards deflationary over time.

pimmen 8y ago
And sometimes you need to break that deflationary spiral, if for example all wealth has accumulated among a few people who don't want to spend or invest. If we see breaking this as a public good this needs to be initiated in some way by people representing have-nots.
hakfoo 8y ago
>Existing tokens had to set their capital controls in the Genesis event, and those tokens that print money haphazardly, won't last. For all the other discussion topics, this is one of the most interesting aspects of crypto-economics for me. We can bake in different economic models and see how they work without it being easy to manipulate them later. It's sort of disappointing that most platforms I've seen are either going for a basic deflationary model (token emissions dwindle and stop) or a fairly flat inflationary one (every block produces 25 new MeatloafCoins forever). There's a lot of research that could be done into "how much do we have to expand the token supply to correlate with increases in actual economic activity and attrition while keeping token values flat against real-world goods". Not by actually pegging the value with a backing fund or guaranteed redemption, but rather by a self-regulating algorithm. There's an interesting rabbit hole there: Can we get a proxy value for "actual economic activity" by crunching the blockchain, or will we need externl information feeds? Can it be made resilient enough to reject trying to game the system? And then, there's the matter of "does anyone want to botstrap a truly stable currency?" Would you get many early participants if you say "it's explicitly designed to discourage speculative HODL behaviour?"

pimmen 8y ago

And sometimes you need to break that deflationary spiral, if for example all wealth has accumulated among a few people who don't want to spend or invest. If we see breaking this as a public good this needs to be initiated in some way by people representing have-nots.

hakfoo 8y ago

>Existing tokens had to set their capital controls in the Genesis event, and those tokens that print money haphazardly, won't last. For all the other discussion topics, this is one of the most interesting aspects of crypto-economics for me. We can bake in different economic models and see how they work without it being easy to manipulate them later. It's sort of disappointing that most platforms I've seen are either going for a basic deflationary model (token emissions dwindle and stop) or a fairly flat inflationary one (every block produces 25 new MeatloafCoins forever). There's a lot of research that could be done into "how much do we have to expand the token supply to correlate with increases in actual economic activity and attrition while keeping token values flat against real-world goods". Not by actually pegging the value with a backing fund or guaranteed redemption, but rather by a self-regulating algorithm. There's an interesting rabbit hole there: Can we get a proxy value for "actual economic activity" by crunching the blockchain, or will we need externl information feeds? Can it be made resilient enough to reject trying to game the system? And then, there's the matter of "does anyone want to botstrap a truly stable currency?" Would you get many early participants if you say "it's explicitly designed to discourage speculative HODL behaviour?"