Topic: [ANN] Freicoin: demurrage crypto-currency from the Occupy movement (crowdfund) - page 18. (Read 68048 times)

Because transaction fees don't rot your money away while you don't use it, just like gold doesn't rust.

Where did I say fiat demurrage currency? I meant demurrage currencies in general, like this one:


Since freicoin is modelled after rotting grain I hereby propose its trading symbol to be ROT.

My point is that the pruning is just a technical improvement that is reusable for bitcoin (and other cryptocurrencies). We should work with the bitcoin developers to achieve that. We coould also finance it together.
Personally I like more the bitcoin way of "do it first, earn the the bounty later", but that's another question. 


I don't know of any fiat demurrage currency. The examples I know are the wörgl experiment (not private), the chiemgauer and other private local currencies like it.
All of them competing directly with a national (or monetary union) currency. All of them worked pretty well.
Can you tell us about your sources?


No, you don't lose money by having stock, that only happens with deflation.
All you have to do is not hold a big quantity of money. You should better spend it or lend it.
You don't need to rise prices, that's inflation.
As said many times, expocoin is not equivalent to freicoin.

More frequent questions solved here:
https://bitcointalksearch.org/topic/freicoin-bitcoin-with-demurrage-3816


Everybody will save a lot in concept of interests (which are included in the price of EVERY WARE). Gesell uses an entire long chapter to explain how differnt economic actors would judge a currency free of the unfair basic interest: "How Free-Money will be judged".
You can start with the The Shopkeeper and then use the next button.
You could also read the whole book before criticizing an idea you don't understand (you can skip the first two parts on land and Gesell's particular view on georgianism).


The demurrage fees go to miners, the people that maintain the security of the network. What's wrong with that?
Why transaction fees are so much more legitimate?

Whenever a demurrage currency seemed to "work" it was the only option available. If there had been a better alternative without demurrage then they would have used that instead. Freicoin will have to compete against bitcoin from the start and it will lose.

Thanks for the search term, some interesting material there.

-MarkM-

Actually that's once of the prime examples of a demurrage currency. Some of our earliest examples of writing are actually grain contracts that acted as currency and decreased in value over time, to account for rot. Google "Egypt grain demurrage" for details.

Sorry, I want to respond to your post in full, but I'm getting pulled ten different ways today.

Okay, so how is freicoin better for a successful business than dollars, or bitcoins? What profit do they extract from whom by using it? Does it give them more leverage over their employees so that forcing employees to accept rotting/decaying/evapourating money? It is expected they will get more goods from suppliers per man-hour their labourers put in selling stuff for them or building stuff out of what the suppliers supply?

Or is the plan to turn into an investment firm, offering to help the suckers they foist this rotting currency upon a potential escape from the rot if only those suckers will simply invest into the business? Maybe thus turning a nice profit by suckign everyone into putting back into your busienss all the crap-coins you foist off upon them as wages or as change or even as "payment" for supplies?

Even tobacco/cigarettes/liquor/pantyhose type goods that have become currencies in various circumstances seem to be actually somewhat storable, even back in ancient times when grain was a currency that was only after granaries had been invented, wasn't it? So how the heck does anyone get suckered into actually accepting this guaranteed-to-rot currency? You keep dropping its price lower and lower and lower until someone finds a sucker who will accept it real soon thus decides to buy just as much of it as that sucker will accept? Then that sucker is stuck with the problem of finding a greater sucker?

Since the whole thing seems to depend on suckers, why not just build it directly on top of bitcoin? I have already pointed out in another thread (in the Development section) that the blockchain need not adjust its values at all, the adjustment can happen in the display and input routines only, allowing the blockchain to represent with constants the values that the display and input routines will, by access to a clock, render in accordance with the time at whcih the input or display happens, it becomes un-necessary to use a separate blockchain at all. You can simply use such display functions in a demurrage-coin client that uses the bitcoin blockchain for actual transactions but demurs the demurrage-coin quantity it displays for any given bitcoin quantity in accordance with the seconds since the epoch or whatever: the time at which display or input happens.

That way everyone can hum along fine all using the same blockchain but those who prefer to think of their balances decreasing can use the demurred display of their balance and those who prefer to just use constants to represent those same bits in the blockchain can do so.

Since the whole point is simply psychological, to psychologically trick people into thinking they should spend their money as soon as possible, this should suffice nicely since in any event it is hopefully only those who volunteer to be the suckers subjected to the experiment that need to see their balances as constantly decreasing. This should also ensure that your demurrage-coin will work fine and be wideley used, since anyone who prefers not to pay attention to the decreasing numbers representation of their balances can just stick to the normal family of clients and see things they way they always have, which they will in any case strive to do. Without this approach they will have to do it by not using your currency at all, At least this way they can still in good conscience use the stuff, leaving the psychological benefits of spending as soon as possible to others.

-MarkM-

You have a very peculiar understanding of how a business operates. You might want to study "accurral based accounting" and "net payment terms" to get a better idea of how business works.

Essentially, there is a constant flow of money in and out of your business. If this is not the case, you are probably not running a very successful business.

You shouldn't have much of a "purse" and if you do it should be put into investments, not your checking account.

Demurrage works well for people with this style of operation, which is most successful people.

Your biggest expense in running a business, as always, will be other peoples time -- the cost of labor.

If I expect falling value doesn't that mean I have to inflate my prices?

For example if I buy 16 years supply of pencils, or erasers, or gold, or land, or whatever... any wholesale good I plan to sell at retail over a period of time to make a living as a retailer... surely I have to keep on increasing the price I require for what is left of my supply as the money I have aquired from what I have sold so far keeps vanishing from my purse, otherwise I will not have enough in my purse by the time I have sold all but my profit portion of the bulk buy quantity.

Is it supposed to be good that we help eliminate retail by forcing wholesale purchases to become impractical for retailers, forcing them to buy one at a time themselves instead of buying a number at a time, or some such thing?

If the objective is inflation, why bother decaying the currency, just jack the prices instead...

-MarkM-

Exactly, they won't use it and it will be worth very little.

As I said earlier, with the current design it takes 16 years for a freicoin to halve in value. If it takes you longer than that to decide what to do with your money may I suggest a funeral plot? You can't spend the coins from below the ground. Most people will not notice the demurrage.

However, I think you will find the expectation of decreasing value will completely change the way people use this currency. If I know anything about markets its that they trade more on expectations and momentum than rational fact.

Ah, there's the spirit of necro-alt coins past! This one will be worth less because we will make it thus for our own benefit and gain, and that in and of itself will make it better than bitcoin!! Just what the anonymous means of value exchange cadres in the world have been clamoring for! A self-defeating token that someone other than ourselves can arbitrarily control that has delusions of omnipotence!

Look here boys and girls... a new SolidCoin 5.0 (or are we up to 9.0 yet?) has arisen to take its place as the champion of the better than bitcoin competition. Yay! Enjoy your 15 seconds of glory running up an exchange that you can back-rape a couple of dozen suckers with, retire to your angry hole and bemoan loudly how brilliant you are because you have something that is better than bitcoin!! It's just the haters that ruined it for you.

You will find a couple of kindred spirits in that corner of hell, dreamers who think that they are so much smarter than bitcoin, and if we could only relate to just how brilliant they are, we would all enrich them endlessly. Of course this one is designed, and whined for by the occupy-istas, so I expect exactly zero progress before the eventual end of the universe. They will happily gank the $825 and spend it on delivery pizzas to be brought "aux barricades" to support the revolution. They will probably even tip the poor bastard that brings them in freicoins and tell him how lucky he is to have a tip that will be worth less when he gets back to the restaurant than when he received it.

I don't think the cross section of people that would be interested in this proposal, and the people interested in bitcoin would be very large. I certainly don't have any bitcoin. My only real interest in either is completely technological (i look at them as tools). However, if this project does everything they say they want to do I think many more people in the community will find this worthwhile.

If the aim was to create a simple clone of bitcoin with demurrage, sure. Don't you think that's aiming pretty low?

I would hope this currency becomes valuable because it is better than bitcoin (because it builds on it), not because it only copies it.

Sure there's more possible solutions. All I'm saying is that it is a problem that is better to solve (although not a particularly hard one).

Will you consider separating the campaign in different parts?

1HzH4YtFwBQXyF2NCCwyY2qFCCsBsmdN3j
Total Received   0.20115289 BTC   
Final Balance   0.20115289 BTC

I lol'd.

It's not a problem, at least not in that context. It will require implementation of receiver-fees, however, so that the receiver can make an transaction claiming the funds with extra fees in case the input value decays below the output value.

The exact payment solution would work too, and it's a toss-up as to which one is easier to implement.

Interesting that $825 of your needed $28,000 (less than 3%!) is enough to begin implementation. Your estimation of fees, publicity and hosting costs is absurd. Unless of course, a lion's share of that amount is "fees" for the developers (who are basically just tweaking an existing code base). Nice. That kind of thinking is just a swell way to introduce the concept of diminishing net worth currency to the world. A currency that arbitrarily loses value run by folks that look to control and make a killing off if your use of it.

Thanks for playing, I'll pass. And continue to poke fun at this dramatically bad idea.

And really swell citation on the moonbat selling shamanism and money theory. It's called a clue, you need to get one.

Hey, MarkM remembered me that we're forgetting the "exact payment problem".
My proposal was:
https://bitcointalksearch.org/topic/m.453112

Edit: Another consideration. I think that at the very least the pruning technology should be separated from the campaign. It would actually benefit bitcoin too, so pure austrians could contribute with that one even if they think that the whole idea of freicoin is stupid.

You seem to be talking about a system different than bitcoin's. Although there were some improvement proposal on the freicoin forums I wanted to keep things simple and only change what really needed to be changed.
Although probably we should consider some easy changes from here:
https://en.bitcoin.it/wiki/Hardfork_Wishlist


Yes, DEMURRAGE_RATE would be your (1-i). Probably the name is not appropriate.


Actually we could also adjust the "10 min per block" constant to get beaty numbers. For example 50000 block per year (11.something minutes per block).


Thank you, I'll play with it later.


Something around 4-5%, great. We consider something like 4.8% in one of our calculations in the post I refer to above.