Topic: 2012-06-27 newscientist.com - Freicoin: Occupy's online currency for the 99 per - page 2. (Read 2510 times)
June 27, 2012, 09:44:38 PM
At first I was a fan of demurrage. I think it originally addressed the incentives for miners later in the game. That's also the main argument for Proof-of-Stake. However, incentives for miners down the road when block rewards are small can be addressed by real-world solutions in network management and transaction fees. As the former decreases in cost, the latter increases in value. They should maintain equilibrium. As a last resort, there can be some change to the protocol, but nothing as drastic as demurrage or PoS. Besides, the usefulness of Bitcoin will help the global economy grow in real ways, not through hypothecation. We'll see real progress, invention, innovation, and freedom foster a much higher quality of life and those fees we pay for using Bitcoin will feel well worth it.
June 27, 2012, 09:02:14 PM
In case you wonder: The 4.4% are put into mining. So if the Freicoin-economy ever reaches a market cap like the USD, this is an insane amount that can not be reduced just like that. Even worse, at the start they most likely also have the 50 Freicoin block reward(?). And if they ever switch to proof of stake, the 4.4% flow right back to where they came from 
I was thinking hard about how to implement demurrage in bitcoin but with anonymous account holders I doubt it is possible at all. If you don't give the 4.4% to anybody, it has straight no effect at all. For a serious effect it is actually by far too little anyway. The Wörgl had more demurrage per month. Also like stated in the article, who would ever accept decent amounts in Freicoin? In Wörgl it was decided by law that people working for the city get this currency and all others had to accept it no matter what at a predefined exchange rate to the official currency.
I love the Wörgl experiment but I doubt it is possible without a state or at least city running it in a similar way and as long as we don't implement pay to DNA it is not a bitcoin thing.
I was thinking hard about how to implement demurrage in bitcoin but with anonymous account holders I doubt it is possible at all. If you don't give the 4.4% to anybody, it has straight no effect at all. For a serious effect it is actually by far too little anyway. The Wörgl had more demurrage per month. Also like stated in the article, who would ever accept decent amounts in Freicoin? In Wörgl it was decided by law that people working for the city get this currency and all others had to accept it no matter what at a predefined exchange rate to the official currency.
I love the Wörgl experiment but I doubt it is possible without a state or at least city running it in a similar way and as long as we don't implement pay to DNA it is not a bitcoin thing.
June 27, 2012, 08:16:48 PM
I'm all for it as long as you can use it to buy Bitcoin.
June 27, 2012, 08:11:32 PM
No interest in this one. This is no different with my fiat sitting in banks - they both devalue and get nibbled off by fees and so.
June 27, 2012, 08:06:14 PM
Quote
Freicoin: Occupy's online currency for the 99 per cent
Jacob Aron
2012-07-27
http://www.newscientist.com/blogs/onepercent/2012/06/freicoin-occupys-online-curren.html
...
Freicoin, created by NASA engineers Mark Friedenbach and Matt Everingham and photographer Aaron Blumenshine, uses a version of the Bitcoin software with one key difference - all account balances are charged a 4.4 per cent annual fee, which is distributed to all of those running the software.
...
Jacob Aron
2012-07-27
http://www.newscientist.com/blogs/onepercent/2012/06/freicoin-occupys-online-curren.html
...
Freicoin, created by NASA engineers Mark Friedenbach and Matt Everingham and photographer Aaron Blumenshine, uses a version of the Bitcoin software with one key difference - all account balances are charged a 4.4 per cent annual fee, which is distributed to all of those running the software.
...
Quote
Of course, convincing the rich to adopt such a system will be difficult, as there is no benefit to them and significant costs.
Difficult to convince the rich?? Try convincing the poor who don't have a regular income.
I recall my absolute fury at bank fees eating up my very small account when I wasn't earning.
It'd floor me if this freicoin gained any traction.
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