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> And similarly, crypto rewards its early followers and doesn’t promise an expanded pie, but a changing of the guard. Nearly all crypto does indeed concentrate
by tromp 4y ago
> And similarly, crypto rewards its early followers and doesn’t promise an expanded pie, but a changing of the guard.
Nearly all crypto does indeed concentrate wealth onto early adopters, by emitting the majority of supply in the first few years (or even all at launch).
But fixing the block subsidy avoids such concentration, leaving most supply to later generations, much like gold.
Such a purely linear emission deters speculation while encouraging use as a currency.
- cowtools 4y agoI completely agree. Another thing I've been thinking about is this: What if, instead of creating inflation by adding new coins, you create "inflation" by directly decreasing the value of transaction outputs, and you just keep the coinbase reward constant? Depending on the model, you could make it so that outputs eventually go to zero, so they won't need to be recorded on the ledger forever. The old outputs just get garbage-collected.
- wmf 4y agoWhat if you create "inflation" by directly decreasing the value of transaction outputs This is called demurrage and it's been discussed a few times. People find it very confusing when their wallet balance magically goes down but they find it less confusing when their balance stays constant but prices increase.