I understand a 50% transaction fee tax to attract miners and the fact it reduces to a small 0.125-0.250% tax, I am just unsure for the user how this correlates.
e.g. If i send 2 coins to user, do I then have to pay 1 coin to the network
if so another great idea as it will reduce people taking advantage of arbitrage during early development, but unsure if the tax applies to buying the coin on exchanges or from other people
did i get this right
e.g. If i send 2 coins to user, do I then have to pay 1 coin to the network
if so another great idea as it will reduce people taking advantage of arbitrage during early development, but unsure if the tax applies to buying the coin on exchanges or from other people
did i get this right
I will add a Taxation section which clarifies this to the wiki, after this conversation.
The Taxation / Developer funding works as follows:
precursor: The block tax rate has not been decided yet, somewhere in the region of 0.125% to 0.25%.
Mining
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If you mine a block the miner will receive: 20 coin (the full reward)
The developer will receive: 0.025-0.05 coin.
This equates to 0.9 to 1.8 blocks per day to the development team, or 18-36 coins per day. Out of a total of 14,400 new coins created each day.
There is no trickery in this, no premine of that percentage, on every block mined the the stated percentage of reward is also sent to the development team.
Transaction Fee
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Traditional transaction fees apply, during the first 18 months: 50% of the fee is given to the developers, 50% to the miners.
Every 18 months the developer tax % halves, and the miner fee increases correspondingly.
So after 3 years the developer will get 12.5% and the miner 87.5%.
This fee is to encourage the developers to focus on user adoption, the sooner they get it right, the more money they make (even though it's a marginal amount).
Examples
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You mine 10 blocks in a day. you will receive 20*10 coins, 200.
The developers will receive 0.25-0.5 coins.
The total coins minted per block will be 20.025 to 20.05.
You send 120 coins to a friend, the applicable transaction fee is 0.004.
You will send 120.004 as expected.
The miner will claim 0.002 from the fee.
The developer will claim 0.002 from the fee.
Your friend will receive 120 coins.
Developer Earnings Calculation
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If we pin a milestone target of $ parity on the value of the coin, and assume no coins are touched, then after a year the developer will have ~$6500-$13000 worth of coin from block rewards.
Assuming a 100 hour per month commitment to the project, that equates to an hourly rate of $5.5-$11 per hour of work.
It's fair to presume I'm hoping the coin achieves a bit higher than $ parity over time, and the incentive is there. If $9 is achieved by ethical growth of the user base then this project becomes a successful full time job, or a small organization with paid staff.
Sorry for being so verbose, I just want it to be clear.
