Suggestion to switch to PoS

I’ve been really thinking about the devaluation trend of the network and to me the problem is the that there is not enough incentive for holders to hold AE, or for new holders to join in.

In this situation, miners also don’t have this kind of incentive and are dumping the mined coins on the market and the declining trend is non-stop.

If the block reward went to the people who are going to support the network in long-term (to the ones who are holding the coins), they would also hold the new issued tokens and the price declining would most probably reverse.

Waves already has PoS with bitcoin-ng, so its doable.

Why doesn’t AE team consider switching to it?

One of the core promises AE made with the whitepaper was that people would be able to mine it even with smartphones. This is not economically feasible with cuckoo, but with a PoS, it would definitely work.

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Also it would be nice to know who has decided about current inflation curve. It wasn’t clearly announced during the ICO and there were no info about it in the whitepaper. It should have been clearly announced and explained as in https://github.com/ethereum/wiki/wiki/White-Paper. Which cryptocurrency will you trust? That one that is transparent or a shady one? Trust is all that a cryptocurrency has and on that trust all the ecosystem is flourishing. There is too much competition now to make any shady moves and Aeternity is not the first blockchain, but mimics others trying to improve some aspects. There was a disrupting difference between Bitcoin and Ethereum protocol architecture, but a difference between Ethereum and Aeternity is not so huge. How Aeternity is going to take the attention if so basic part of the protocol - monetary policy - was f****d up?

If they tried to make a “better Ethereum” founded by “Ethereum godfather”, why didn’t they at least left the same inflation logic as in Ethereum if they haven’t designed it better?

If you read in the book about economy that a tiny inflation is healthy, it doesn’t mean that 10x higher inflation is 10x more healthy, heh.

@ae-albena please make a vote to switch to PoS.

This can not be called decentralized project.

I know you are creating some easy voting solution but in September I fear there won’t be anything to care about.

The people who are actively building applications or supporting others to build them are, in my personal opinion, the ones supporting the network—or maybe if you supply liquidity to the markets. Just holding might provide a price floor, in theory, but it’s nothing more than the holders just waiting for others to do the work for them, and give them their ROI.

I’m currently looking at hybrid PoW/PoS and PoS. Both PoS and PoW have their merits and while I prefer PoS overall, but you cannot discount the features that PoW brings, e.g. you always have liveness, and by using up energy makes coins »worth« something.

I wasn’t around when the whitepaper was written but I think that this was an overly optimistic claim. It will never be economically viable to mine on a mobile phone—which to me implies PoW—in an open network. Even with PoS the most you could probably do was delegate your stake, without delving into all the nuances.

It was Yani’s decision. As I’ve said somewhere else, I was against it but was overruled in the end.
I’m looking at different options to work with the situation we have now, one being the proposed switch to PoS and other »DeFi« mechanisms.

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OK, while you are looking for possible solutions please review https://blog.aion.network/unity-consensus-zero-to-hero-bc6843b5b657 which is PoW/PoS hybrid consensus implementation.

How did you made up this, Yani? Robin Yani Hood, but are miners really so poor to support them so much?

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It’s not about much or less. Miners would get the same $ if block reward was 10th of what it is now.

Price floor is what AE lacks now. It’s not about ROI you get, the network is up and running about a year now and never during this period it was free of a theoretical risk of 51% attack from beepool.

Also in a year AE was devalued from maybe 20th place to 78th. This means something.

You know the problem here… It might get to a point where mining AE will be so unprofitable that a single mining farm will be able to do 51% attack.

I haven’t calculated it, but it may even be possible for some medium sized mining farm right now.

I know it’s great to work on state channels and all the technology but you do understand that no one will build an app on a network that’s not secure right? That’s like doing a charity right now to build an app on Aeternity.

Yani stop drink xx beer, it is time to do something

Hey @Aetothemoon, you don’t really contribute to the discussion with those comments of yours and you’re not helping in any way. Please be more constructive.

Best,
Albena

The solution now would be to make BRI governance decentralized (see MolochDAO) and then increase mining reward portion to 20% or even radical level of 50% (due to we had radical high inflation). Unfortunately the inflation curve issue will ripple long time until its effect pass away.

Until BRI will be decentralized I will always be suspicious about how the funds are managed and kind of against increasing a ratio of mining reward it receives.