Please define NODEcoin. Is it going to mix together with NXTcash ?
I've seen some message about it like :
NODEcoin will do things to enhance the NXTblockchain and to reinforce forging. The NODEcoin will do valuable things for the NXT network and as such I believe people will bid for them in the NXT Asset Exchange. So, it would have some resale value, but its not like it will become the national currency of . Of course, who knows what crypto speculators will do.I've seen some message about it like :
Quote
nodecoin has a very good purpose as it will allow all of the non-hallmarked nodes to earn something for being part of the network, even if they wont ever be able to directly forge a block, they will earn nodecoins. Generous donators can then fund a NXT dividend to flow through the nodecoins. Maybe we run forging with a non-profit model. All excess transaction fees after paying for the cost of the hallmarked servers gets distributed to nodecoin owners.
Quote
The goal is to get people forging. If we make it in their financial interest to forge with a consistent generation of NODEcoin, then I think a lot of people will forge rather than not forge. Especially if the NODEcoins end up being worth more than the expected forging income, then the whole "pool" issue is moot.
Quote
I will be creating NODEcoin 2.0, which in addition to rewarding people for forging, will be actively validating all gateway transactions and will generate alerts if it ever detects any funny business. As long as the gateway monitors are happy, all is well. I dont expect more than an occasional yellow alert, when there is a network glitch and a transaction has to be manually resent. With the malleability issue, we need to be careful about blindly trusting any request for manual payment.
It wont be very CPU or network intensive, so just let it run in the background and you will start earning NODEcoins. Obviously no premine, no ipo, just launch and let the mining commence. The fewer people mining, the higher the payout and probably a bit of a decline in "block reward" over time. Not exponential decay though, I hate that.
James
P.S. Almost forgot about original question. I am redesigning NXTcash so that it will utilize a gateway for part of the functionality and that will benefit from peer reviewed data, which I plan to put into NODEcoin.
Concerning nodecoin, will there be upper limit to the number of nodecoin? One must be carefull to the initial parameters of the coin because the parameters must be set so that there is always a reason to "mine" nodecoin (always a reason to protect the network). If a upper limit is reach eventually in the number of coin, there will be no reason to mine nodecoin, as no more nodecoin will ever be generate.
I would rather use a reward method inverserly proportional to the number of node "mining". Something like, [reward per block] = X/(number of node mining)^Y, where X and Y are constant. This would be similar to primecoin, which the reward is inversely proportional to the difficulty square (i.e. X=999 and Y=2, for primecoin).
What is your thought on this James.
I think starting at 250,000/day and gradually reducing to 100,000 per day is a good starting point to think about.
Also, I think it makes sense to scale the payout based on the number of active NXT accts.
Unlike other coins, it is possible to recirculate nodecoins (or any other NXTcoins), by having the issuer buy them back. Kind of like a stock repurchase that corporations do.
I want to make sure nodecoin has a tangible value so I will be calling for donations that will go into a nodecoin repurchase acct, probably the same acct as originally issues the asset. This will provide a price floor and demand.
So, if the network needs a boost, pop in NXT to the repurchase fund and nodecoin price goes up, more miners mine. Though I will make the nodeminer very lightweight so there is no reason not to be running it in the background
James
