I haven't been following too closely in this thread - but has anyone suggested a change to POS from POW?
Mining rewards halving to a quite low amount will PROBABLY mean miners leaving the network, to the detriment of the coin?
A POS reward of 2 - 3% would encourage many to stake, there is enough of a distribution to ensure network health.
Just a thought - and sorry if this has already been brought up, too much to read through
Freaking weird, I just had the same thought as I was syncing my CANN Qt back up after 6 weeks. Devs, definitely something to consider. Go green.
You could even implement something like Turbo Stake (on a smaller scale) which will encourage network growth and security.
Hi Guys
Maintaining sufficient hash rate for network security is a topic covered frequently, of course. Naturally the mechanics of
how to do so is also discussed.
Mining reward is composed of two elements, transaction fees and direct subsidy, which halves every 100K blocks.
Currently transaction fees are insufficient incentive to keep miners hashing away, keeping the block chain moving and secure. Miners are therefore dependent on subsidy and/or expectation of future value.
What has happened to CannabisCoin's exchange rate since the last halving? As we can see below exchange price has risen by about fifty percent, so not enough to offset the halving subsidy (yet).
What could change that?
Obviously it is early days yet for the Yes We CANN movement and unsubsidized transaction fees are unlikely to be sufficient mining incentive for some time - that would need a lot of CANNdy sales daily.
Price rise then. Is it likely that the exchange price will rise, especially in view of possible test crop releases from the various grow sites? That does seem likely, meaning that mining reward will likely rise justifying miners' faith in future value as incentive for stockpiling current rewards and encouraging more mining effort.
What of the alternatives such as Proof of Stake (PoS) rather than Proof of Work (PoW)?
There are positives and negatives to any method. After a year of distribution the rate of new coin minting is about to fall to roughly the equivalent of 1% annual inflation, halving every seven weeks or so thereafter.
Reducing the rate of inflation reduces the dilution rate of current holders' stake. If we were now to turn around and increase the inflation rate again to the 2-3% suggested for PoS we'd be diluting the value of the assets of those who have already acquired their CANN stake. You realize that is definitely an unpopular thing to do as it disadvantages early supporters who mined and/or made their purchases with the expectation of declining rate of coin supply inflation.
On the other hand we have some room to maneuver since part of the intended target of 100,000,000 total coin supply has been "burned" (removed from the block chain) so tweaking the subsidy rate to add say, 8,000,000 coins over the next five years or so would still technically be within described parameters when CannabisCoin switched to the X11 algorithm a year ago.
There are other options besides PoS. We could simply fix the subsidy rate rather than allowing it to continue halving. At what annual inflation rate should that be done though? I hesitate to ask who has crystal balls but some future knowledge would be helpful. We could also change to multi-algorithm and allow ASICs to keep the hash rate high. At what exchange rate and at what volume of transactions does mining subsidy become completely unnecessary? How strongly will the market react to releases of CANNdy into the supply chain? Should we wait to see how the market reacts before tampering with the block chain at all?
Making certain that any changes are fair to all is a challenging task.
Is there a single "best" option? That's highly unlikely but rest assured block chain health is monitored and possible actions periodically discussed. I can tell you that PoS is not presently a favored option and that any change will be the result of very careful consideration. Any change must advantage everyone generally and no one particularly.
