I propose a decrease in dillution of the Gridcoin

in gridcoin •  7 years ago  (edited)

In this article I will propose, that we decrease the dillution/inflation of the Gridcoin.

I sort of proposed the same in my last article but I'm afraid that it got lost in the rest of the test.

I calculated in the last article that our Gridcoin has an inflation rate of roughly 6.5% per year. In normal currencies that is not a big problem, but in my honest opinion it serves a major issue in cryptocurrencies!

My suggestions are to lower the 1.5 APR to 1 APR and also only offer 50,000 per every 1500 blocks instead og the 50,000 per 1000 blocks today which is achieved almost daily at the moment.

With that we will create only 4,000,000 new GRC due to interest and around 12,200,000 new GRC to be given to researchers. In total 16,200,000 GRC new coins a year giving an inflation rate of 4.1 %

I believe this will make GRC more noticeable for investors and possibly drive up the GRC/USD about 25% to about 0.08265 or almost a dime per Gridcoin.

In my humble opinion this is the way to give investors an incentive to Invest more in GRC and possibly drive up the exchange rate even further!

As I am not a solo miner at the moment due to lack og funds I am not able to start a vore. But I hope all of you good people will join in the discussion of the future of the Gridcoin.

Edit: I am aware that the exchanges are down at the moment, which fuels the decrease in the exchange rate, as investors cannot Invest in Gridcoin and therefore choose another currency.

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i like your idea. but this doesn't click on me. backup your idea with research and not gut feeling. and ill help you.

I believe this will make GRC more noticeable for investors and possibly drive up the GRC/USD about 25% to about 0.08265 or almost a dime per Gridcoin.

  ·  7 years ago (edited)

@teknix it is actually Sound financial advice.

With currencies you need to take the approach "that all other factors remain the same" otherwise everything regarding currencies is merely all guesswork.

My prediction of a 25% exchange rate increase is rather conservation. As the inflation, and thereby generated supply, is reduced by ~30%.

Thanks for your input. Nice to know some people take the time to read ny posts.

The problem you risk running into is that it wont be worth it to stake anymore compared to other cryptos. Also, the inflation rate will diminish overtime because the amount of earned coins through boinc crunching wont increase.

I agree that Gridcoin might halt the inflation by itself in time. But why wait to make the coin more stable?

For a coin such as this which , to be sucesful, would be extremely decentralized inflation shouldnt be a very big problem since a lot of people will hold small quantities, lots of wallets will get lost... A decaying rewards system instead of a harsh cut would also be much more appreciated.

For many months now research rewards are around 27k per day, i.e. even less than you are proposing.

Is the goal to be noticed by investors? (i.e. price increase?)

I believe this will make GRC more noticeable for investors

See how well Stellar is seen; Dogecoin has market cap ~20x higher despite ~ 250x higher number of coins... and they produce more coins a year than a total number of GRC.

Doesnt Dogecoin have a cap?

unless it changed since launch, no, it's just halving every x amount of blocks.

  ·  7 years ago (edited)

No, extra 5.256 billion coins mined every year - constant (13x more than total GRC supply)

I also believe this is one of the questions we have to ask ourselves in this community:

What is Gridcoin's main goal?

 - To reward researchers and promote the whitelisted BOINC projects?

 - To have a cryptocurrency which has a "real real world" use for the mining protocol and a true alternative to other cryptocurrencies?