Just reading your economic paper: https://docs.google.com/file/d/0BwAGADgnQcrtdXE5MkF5S05oaHM/edit?pli=1
Some questions:
-Do you want Nxt to be used as money (medium of exchange + store of value)? Because on page 4 I read "Deflation is not much better than inflation. 'Real' coins should be created on top of Nxt, and be issued in quantities that keep their value constant."
-Do you want to increase the amount of 1 billion Nxt? On page 4 it says "there is no limit for a specific type of monetary expansion".
I really like Nxt, but these economics discourage my enthusiasm
Some questions:
-Do you want Nxt to be used as money (medium of exchange + store of value)? Because on page 4 I read "Deflation is not much better than inflation. 'Real' coins should be created on top of Nxt, and be issued in quantities that keep their value constant."
-Do you want to increase the amount of 1 billion Nxt? On page 4 it says "there is no limit for a specific type of monetary expansion".
I really like Nxt, but these economics discourage my enthusiasm
i too am quite interested in NXT, i'd be interested for an answer to this too as coming from a tradtional mine and trade crypto background I dont quite get the payment system platforms like NXT and Ripple
nxt should always be used as "the money" inside of the nxt ecosystem because the security of the network is atleast partially a function of the price of nxt.
the 1 billion amount can never be changed except with a hard fork. just like bitcoin.
https://nxtforum.org/general/%27pos-stands-for-something-other-than-%27stake%27%27/
Here I read from allbits:
"The reason why having a fixed never-growing supply is undesirable is obvious: it encourages wealth concentration and creates a static community of holders without an effective way for new people to get in, and it means that the coin has no way to incentive any specific kind of activity in the long term."
CfB answers:
"Antideflation is the last key element of Nxt. It's supposed to solve this problem."
Does this mean that Nxters in the end want to inflate the Nxt supply somehow?
I see no good reason to expect wealth concentration and a static community of holders. I mean its true that a large stake holder will tend to make larger transactions than a smaller stake holder meaning a smaller percentage of his wealth will be consumed in fees, but you need to also assume that larger stake holder will tend to redeploy a smaller percentage of their nxt worth than a smaller stake holder. Do we we have any data to support this? Granted wealthy people tend to consume a smaller percentage of their net worth but are they not, in general, more diversified in their investments than less wealthy people?
The point is that, maybe its true, im not saying that it isnt, but we simply lack the data necessary to come to a determination either way.
Yeah, I tried to compare it to the argument about how people are still willing to spend their money on technology items, fully knowing that they will become cheaper and obsolete soon after purchase. I'm totally against inflating the supply personally, as I don't think there's any proof that deflation (even though I wouldn't call nxt deflationary unless people start sending their nxt to the genesis account) is a bad thing. In fact, I think it's very advantageous for governments/central banks to 'teach' people the opposite, that inflation is good and deflation is bad bad bad.
too me stable purchasing power is most ideal. i think this could be achieved in a crypto by having a supply that never stops inflating at a constant rate (i.e. 50 coins per block forever) because eventually the value of the new coins produced would reach an equilibrium with the cost to individuals of sufficiently securing their coins inorder to prevent an amount from being lost which is greater than the amount of coins being produced in each block. that is to say, eventually the money supply would be inflated to the point where its value was such that people took only enough care to protect their coins from loss that the amount lost in each 10 minute period equaled the amount of new coins produced in that block. (assuming blocks were produced every 10 minutes). If i made a crypto this is how i would do it.
Sounds a bit like Doge. After 600,000 blocks the block reward will be 10k coins per block for every more.
