Hahaha. I knew it. Now there will be a debate that inflation curve is falling too sharp. Why it doesn’t suprise me. Aeternity is like a cancer.
@ssh, please create the proposal to inflate future rewards and that BRI will take 100% of it. All of it for the sake of future sustainability of course.
It is like reading: The initial issuance is wrong so let’s screw it further. The ultimate beneficent will be BRI and Aeternity Fundation anyway.
I did that, love it. Really nice “open source” learning material.
This is an interesting approach worth researching I think.
some miners are also token holders. Only those mine to sell for profit are happy.
It is and I will do it for sure! Thanks hanssv.
Rising prices can also increase computing power. You have chosen the easiest way, and you have chosen to sacrifice the interests of early investors. This is extremely selfish. Ae also lost consensus, and prices have been falling. Those who have been hurt by you are no longer able to help AE.
Guys, I recommend to add a poll about the inflation rate using the Governance aepp. I am very interested to see what token users think about it.
It would be best to wait a bit for Ledger support though, since I assume most users use it to store their AE.
I will make sure to let you know when Ledger support becomes available. We will also prepare a guide on how to create/participate in polls with a Ledger (it is easy). It will be translated it into Chinese.
I’m glad you’re open to Suggestions on the mining inflation rate. I hope the vote will be successful, let’s go!
I think there shouldn’t be any vote about concrete numbers before discussing the options.
or should the “first vote” only indicate whether the inflation rate should be changed or not?
Yes, exactly. I agree. The first vote should be - yes or no.
There is a partial solution to irresponsible high issuance. We need to vote to burn BRI tokens.
I think we should rethink monetary policy and instead of PoW we should migrate towards PoS with a burning rate (deflationary characteristic) based on the tx fees. This way the more transactions and more fees are paid by users, the more burned coins will be.
So let’s say we have PoS and the node that will approve transactions will get the reward based on tx fees, but part of it will be burned (let’s say 1% to 5%) based on if there will be additional coinbase reward or not.
This way we can say that the cryptocurrency is based on its economical activity instead of saying that it is based on a thin air or PoW energy cost. It will behave more like stock which is also based on the economical activity.
Another point of view of this situation will be to compare it to a company. Basically the shareholders can benefit from the stock by receiving dividend or by buybacks. Buybacks are like buying shares and burning it by a company.
In Aeternity, users will buy tokens (to pay tx fees) and nodes will burn part of it. Essentially it is a buyback procedure.
If the token price doesn’t go up, the miners will go
That’s pretty close to what I’ve been trying to push for.
- Make transactions have a fixed base fee (fixed min gas price), of which 90% get burned and 10% are redirected to the node that sourced the transaction. This still prevents spam and also makes the UX around gas prices much simpler. The 10% for nodes sourcing the transaction would give more people an incentive to run their own infrastructure. Currently all infrastructure for wallets relies on cashflows outside of the system which makes the whole system less resilient.
- Add a variable fee (tip) on top that users can include if they want their transaction to be prioritized.
- If we switch from PoW to PoS lower block rewards significantly, since the operational expenses would be much, much lower
In combination with PoS this could allow us to adjust fee burn rate, staked/unstaked ratio more or less dynamically and maybe based on that get better security.
The first and easiest step would be to just introduce burning rate on top what we have now. I think 90% burning rate of TX fees is too much. I feel it should be between 1% and 10%.
Let’s do some math based on Ethereum. You can see here https://bitinfocharts.com/comparison/ethereum-transactions.html that there are roughly 700k transactions daily and let’s assume $0.05 median price for tx fee. That is around $35k per day in tx fees and around $1m per month. 5% burning rate would give around $53k tokens burned monthly and $630k yearly. That would be a good start and the focus should be to make Aeternity more popular, the more transactions the more burned coins.
I think burning rate would have better effect than staking. If you have staking, a lot of tokens would be frozen and the liquidity might be poor. Burning rate would support the token value as the token value would be directly connected to an economic value of tx fees. And that is a real value. You can really say the crypto is supported by the economic value of its network.
The question is wouldn’t Aeternity be a security then? Are there any blockchains with burning rate implemented? If not, Aeternity would be the first of its kind. The negative effect of Aeternity to be considered a security is partially waived by the ability of paying for tx fees with tokens (native tokens), so in theory you don’t need to have AE coins to pay for transaction, you can pay with a native token (stable coin for example), the miner will take a native token and will burn AE. Still, AE token value (and holders) would benefit from that economical activity, despite the user doesn’t have it or doesn’t use it directly. Isn’t it beautiful?
So Aeternity can be a platform that encourages using native tokens in various forms. Those can be security tokens (for example REITs tokens) or not (for example USD/BTC/ETH-backed tokens). Let’s use the technical potential Aeternity has that the other blockchains don’t have and be the leader.
I like these ideas, but the biggest question on my side will be - is there any consensus on this? And if there is not - how can we build it?
The only way forward in my opinion is through the governance aepp. If you have a proposal - present it for voting there (wait for Ledger support though).
Interesting, Ripple (XRP) has such a burning rate implemented as you can read:
Every transaction must specify how much XRP to destroy to pay the transaction cost.
Beneficiaries of the Transaction Cost
The transaction cost is not paid to any party: the XRP is irrevocably destroyed. Since no new XRP can ever be created, this makes XRP more scarce and benefits all holders of XRP by making XRP more valuable.
Is governance AEPP finished & ready?
How can we put a proposal & a poll?
The Governance aepp is available in the mobile Base aepp. Just go to base.aepps.com on your mobile phone (use Safari on iOS), then click on “Browse”, and select the “Governance” aepp.
Ledger support is coming. As soon as that is available, a tutorial on how to use it will be shared with the community.