This proposed change to the block reward seems like a reaction to people's concerns about the current value of the coin, not the long term value.
Remember a few months ago when the algo change happened? The block reward was about 7647. Now it's about 6917. That's about a 10% drop in block reward over three months. Now there's a proposed change to make the block reward 2435 and then only drop 11-12% over the course of a whole year!! That's a huge slowdown to the reduction of the block reward and may result in a slight increase in value in the short term, not the long term.
The block reward (in it's current state) is dropping very fast now, but unfortunately in the altcoin world people want to see results "now now now" and aren't willing to wait the years necessary to reach a desired result.
If left alone, the block reward would hit 2435 in two years. And would continue to decrease faster than the new proposed change. This means that with the new change, in two years DGB will be adding coins to circulation FASTER than if they left the block reward as it is now.
If left alone, the value of DGB would probably continue to drop. It's a hard choice. Add more coins now (current state), or add more coins later (proposed change)?
The Digibyte team says that they are in this for the long haul. If they are, then why change for a fix that might cause only short term value stability? Is the Digibyte team looking at DGB as a speculative commodity, or as a currency? Value of the coin is not important. Acceptance into the marketplace is.
Hello bogglor,
Digibyte team has explained, few posts ago, why they intend to decrease the block reward. But because i'm following DGB since its birth, i'll try to explain you with a bit more details.
DGB was kinda unminable for few weeks/a month before the multi algo change. We (the comunity) needed a lot of hashrate to reach block 145000, in order to switch to the multi algo. Because of this lost time, they decreased the block generation from 1 minute to 30 second in order to compensate this previous issue and to put more coins in circulation.
Now, I want to put your attention on one fact : since multi-ago is here (approx 3 months from my memory), we have generated more blocks in these 3 months than in the first 9 months of Digibyte life (this means 3x faster than before!). That's why I actually agree to reduce the block reward, not only in order to give DGB a short term value, but in order to give DGB the key for a future success too.
My opinion is as simple as this : actually (and if things doesn't change), coins generated are too much high reguarding the (actual ofc) demand. Decreasing the block reward will match better the actual market needs, and it will give to DGB more attention from the market... and not only for a short period imo, because a lot of people knows that DGB has potential.
The total number of DGB will be untouched : 21 bilions as mentionned since January 2014. But because coins are generated too fast actually, it will be a great solution to reduce the amount generated a day for the short time as well as the long haul. Acceptance in the altcoin market/merchants can be done especially when improvement are done. And that's what DGB's team is doing.
coz you would be down bad... 3-4 times down of what you have now...and you would be tied with DGB and no BTC to buy those even cheap ones... You may just watch others buying...
