A better distribution model

[adolf512]

Instead of having a halving every 4 years or something, wouldn't it be better to increase the time between each halving according to the Fibonacci numbers?

Number of blocks: reward

524284: 4096
524284: 2048
1048568: 1024
1572852: 512
2621420: 256
4194272: 128
6815692: 64
11009964: 32
17825656: 16
28835620: 8
46661276: 4
75496896: 2
122158172: 1
197655068: 0.5
319813240: 0.25
517468308: 0.125
837281548: 0.0625
1354749856: 0.03125
2192031404: 0.015625
3546781260: 0.0078125
5738812664: 0.00390625
9285593924: 0.001953125 (now after 28655 years at least 9 decimals will be needed).

It continues like that forever resulting in a total supply of 8589869056 which is the sixth perfect number. 25% is mined before the first halving, 37.5% is mined until the second halving and 50% is mined before the third halving. The numbers above are for a blocktime of 60 seconds resulting in halvings after 1,2,4,7,12,20,33,54,88,143,232,,, years and i believe this is the ideal distribution(25% mined after 1 years, 50% mined after 4 years).

Marketcap(including future coins) needed for secure network assuming a 10x in price is needed for the same security after halving

1 years: 100000$
2 years: 1 million $
4 year: 10 million $
7 years: 100 million $
12 years: 1 billion $
20 years: 10 billion $
33 years: 100 billion $

If the new coin is successful the price will increase enough for the network to remain secure after each halving, of course most coins fail and then it does not matter how good the distribution model is. This distribution model can be applied to any new coin but it is most suitable for pure PoW and i actually think pure PoW is the best solution when implemented properly.

Copied from https://bitcointalk.org/index.php?topic=1630098.0

[Rmcdermott927]

I think the idea is to have the supply production taper off quickly, so that it quickly becomes deflationary and price / demand will increase.

No point in waiting until well after I'm dead to profit

[adolf512]

I think the idea is to have the supply production taper off quickly, so that it quickly becomes deflationary and price / demand will increase.

No point in waiting until well after I'm dead to profit

I think halving every 4:th year is a bad idea for a new currency, it results in very high initial price, especially with a slow start(zcash went up to 3300btc). But if you decrease the blockreward too fast we will end up with an insecure system

btc block reward over time:

This results in issues after 32 years, i do not think it is a good idea to rely on fees for security.

My proposal(relevant for new alts):


When it comes to blocksize i like the idea behind bitcoin unlimited, it just needs to be tested well enough, with this suggestion there will be no need for a fee market to secure the network.

edit: i just realised this could be implemented to btc aswell, maybe via a chainsplit and change of PoW algo(before the third halving).

[Rmcdermott927]

Zcash had such a high price at launch due to corporate hype and the community around it. That bubble only lasted a few hours and was quite silly.

[adolf512]

Zcash had such a high price at launch due to corporate hype and the community around it. That bubble only lasted a few hours and was quite silly.

The zcash price remained above 0.5btc for 24 day. Distributing 25% of the coins during the first year would also make the coin more attractive for investors. The issue i have with zcash, zclassic and zcoin is that it is only a few percent mined atm and thus they are likely to go down in value. Halving every 4:th year is too slow initially and too fast after 32 years, an exponential decrease is not optimal, the only advantage is that it is easy to understand.

It's not obvious 1+1/2+2/4+3/8+5/16+8/32+13/64+...=4, this is the only real disadvantage with my suggestion, harder to understand.

I night invest in zcash/similar next year when it is more mined and less inflation.

[AshantiCompton05]

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[AshantiCompton05]

Zcash had such a high price at launch due to corporate hype and the community around it. That bubble only lasted a few hours and was quite silly.

The zcash price remained above 0.5btc for 24 day. Distributing 25% of the coins during the first year would also make the coin more attractive for investors. The issue i have with zcash, zclassic and zcoin is that it is only a few percent mined atm and thus they are likely to go down in value. Halving every 4:th year is too slow initially and too fast after 32 years, an exponential decrease is not optimal, the only advantage is that it is easy to understand.

It's not obvious 1+1/2+2/4+3/8+5/16+8/32+13/64+...=4, this is the only real disadvantage with my suggestion, harder to understand.

I night invest in zcash/similar next year when it is more mined and less inflation.

Very good disucssion. I was about to start a similair discussion. The current total market cap of all cryptos might seem high but blockchain is here to stay and will involve all our lives. I do see a bright future for everyone that's hold's their coins with a long term vision. An interesting website I found: https://www.coincheckup.com If you want to know more about the: team, product, communication transparency, advisors and investment statistics on every crypto then this is your go to platform.