Proposed DigiByte v3.0.3 Update & Hard Fork @ Block 400,000 *Update difficulty code to prevent future myriad style time warp attack
*Update checkpoints & seed nodes
*Update & fix bug which triggers safe mode for exchanges & pools
*Include updated DigiByte image in wallet
*Change production from 6,746 DigiBytes per block at time of fork to 2,435 DigiBytes per block
*Change reduction from 1% per week to 1% per month. (12% annual reduction compounded monthly)
Dear DigiByte Community,
DigiByte was launched on January 10th, 2014 with 60 second block times and the promise DigiByte would reach a maximum coin production of 21 billion coins about 30 years from now. There was also an understanding that roughly 4 billion coins would be produced in the first year of DigiByte's life.
As many of you are aware, following the second DigiShield update, DigiByte production came to a halt with slow block times. To return to the proper rate of production, we hard forked to MultiAlgo mining.
We successfully achieved the benefit of five mining algorithms for much faster transactions with the switch from 60 second blocks to 30 second blocks. These faster transactions will be a huge boost in the future for merchants & DigiByte users.
However, this increased coin production leaves us with a short term inflationary problem in a deflationary code environment. With the block speed reduction (60 seconds to 30 seconds), DigiByte production doubled. This means twice as many coins are currently entering the DigiByte ecosystem as originally planned. While this originally worked to catch us up to the projected 4 billion coins in the first year, we feel with an upcoming hard fork that now is the best time to make a change. If production remains the same, we face a massive inflationary problem over the next year and we will reach maximum DigiByte production in 15 years.
We have always been opposed to intentionally increasing the rate of production, but in this case everyone wins when we reduce the current reward to fit in with our original vision and timeline. Everyone's DigiBytes will become more valuable, and our current inflation problem will be curbed by roughly two-thirds. This will help to alleviate some sell pressure on the price.
We are proposing three major changes in this hard fork @ block 400,000: A)Change production from 6746 DigiBytes per block at time of fork to 2435 DigiBytes per block (see spreadsheet)
B) Change reduction from 1% per week to 1% per month. (12% annual reduction compounded monthly)
C)Update DigiByte difficulty code to prevent future time warp attacks (see MyriadCoin attack)
Projection Spreadsheet:
http://www.digibyte.co/sites/digibyte.co/files/DigiByte_Production_Projection_v3.0.3.xlsxThis makes DigiByte attractive to an investor for the following reasons: *21 Billion DigiBytes in 21 years (Max supply & fixed predetermined rate of production: see spreadsheet)
*1 to 1000 ratio with Bitcoin (21 million BTC to 21 billion DGB)
*BTC once hit $1300, DGB could hit $1.30, perfect price for micro transactions
*DigiBytes become 1% more scarce every month, 12% annually, compounded monthly
*Bitcoin reward reduces 50% every 4 years, DigiByte has a monthly compound reduction of 48% every 4 years
*DigiByte at $1 = $21 Billion dollar market cap in 2035, Western Union is $12 Billion right now
*BOA Said Bitcoin had max $14 billion market cap potential right now
*DigiByte at $10 = $210 billion market cap, possible by 2035 when mining ends
*We can always move the decimal point one place and have $2.1 Trillion DigiBits if needed
*Much more sustained mining incentive than previous model, 1% weekly reduction was too sharp of a decrease, this is more gradual (Miners = network security)
Projection Spreadsheet:
http://www.digibyte.co/sites/digibyte.co/files/DigiByte_Production_Projection_v3.0.3.xlsx
DigiByte Block Timing: (Each of 5 algos discovers new block every 2.5 minutes) 1 new block every 30 seconds
2 blocks per 60 seconds
120 blocks per hour
2,280 blocks per day
20,160 blocks per week
80,649 blocks per month
Last DigiByte to be minted: January 10th, 2035 (21 years) Last Paying Reward Block: 19,764,941
Please post your thoughts and check out the spreadsheet here for a detailed overview of DigiByte production:
http://www.digibyte.co/sites/digibyte.co/files/DigiByte_Production_Projection_v3.0.3.xlsx
