mimblewimble team mailing list archive

[Victor Büttner <victorbuttner42@xxxxxxxxx>]

Disclaimer: Still very much a crypto/programming beginner and I've not read
all previous suggestions. Feel free to ignore.

How about making inflation as a logarithmic function of difficulty?

Something in the direction of
f(x) = sqrt(ln(x+1)^2*e+c

where:
f(x) = block reward
x = difficulty
e = predetermined constant influencing early miner bonus
c = predetermined constant influencing base block reward

-Early miners get a bonus since the difficulty/reward ratio is better at
low difficulties.
Negative price inflation is somewhat mitigated with since if price
increases, more miners will join, increasing the difficulty and supply
inflation and vice versa for positive price inflation (price going down).




2017-11-09 21:14 GMT+01:00 Casey Rodarmor <casey@xxxxxxxxxxxx>:

> One thing that John brought up which I think is good to remember that
> supply inflation is not the same as price inflation. Even in the face
> of supply inflation, high demand and increasing adoption can lead to
> negative price inflation. (e.g. price of grin going up)
>
> Bitcoin has had supply inflation throughout its life, but has so far
> avoided price inflation.
>
> On Thu, Nov 9, 2017 at 3:28 AM, 0xb100d <0xb1@xxxxxxxxxxxxxx> wrote:
> > Agree that it is slightly concerning how long it will take to  be a
> stable
> > store of value, especially considering there is not going to be the same
> > number of years where grin is unknown compared to bitcoin (due to current
> > crypto climate and grin publicity) so the long period  of high inflation
> > seems like it will be overkill.
> > I agree with the sentiment that the constant reward is more fair than how
> > early bitcoin investors got such an unfaor bonus, but I also think the
> > ecosystem is different now and the odds of Grin being unknown while early
> > adopters get in is going to  be slim. I think people will be all over
> grin
> > from the getgo.
> >
> >
> >
> > Sent with ProtonMail Secure Email.
> >
> > -------- Original Message --------
> > Subject: Re: [Mimblewimble] On block rewards
> > Local Time: November 2, 2017 5:01 PM
> > UTC Time: November 3, 2017 12:01 AM
> > From: casey@xxxxxxxxxxxx
> > To: John Tromp <john.tromp@xxxxxxxxx>
> > mimblewimble@xxxxxxxxxxxxxxxxxxx
> >
> > Hi All,
> >
> > Thanks John for making the graphs!
> >
> > The graph of monetary inflation for a constant supply coin concerns me
> > slightly.
> >
> > Central banks managing stable fiat currencies generally target 0% to 4%
> > price inflation per year.
> >
> > Upon entering the 12.5 bitcoin block reward era a little under 8 years
> after
> > being released, bitcoin hit 4.17% yearly monetary inflation (without
> taking
> > losses into account) which makes it competitive with stable fiat
> currencies,
> > even if demand stays flat.
> >
> > With a stable supply of coins, it looks like Grin will take 20 years to
> > reach 5% inflation. I worry that this will hurt its competitiveness as a
> > store of value vs Bitcoin, fiat currencies, and cryptocurrencies with
> > thinner tail emissions.
> >
> > There are upsides, since coin distribution is likely to be less uneven,
> and
> > pricing might be more stable.
> >
> > I think that a constant block reward is kind of a settled topic, so I
> don't
> > mean to start a debate, just wanted to add my two ₲.
> >
> > Casey
> >
> > On Thu, Nov 2, 2017 at 9:47 AM John Tromp <john.tromp@xxxxxxxxx> wrote:
> >>
> >> On Thu, Nov 2, 2017 at 3:39 PM, John Tromp <john.tromp@xxxxxxxxx>
> wrote:
> >>
> >> > The attached plot summarizes how the bitcoin emission compares to that
> >> > of grin
> >> > over the first 200 years, assuming a 2% yearly loss of coins.
> >>
> >> Here's the same plot, as well as one for inflation, as a gif.
> >> Maybe these can be added to
> >> https://github.com/mimblewimble/grin/wiki/fees-mining
> >>
> >> regards,
> >> -John
> >> --
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