Allan Niemerg,
> It's worth keeping in mind that mining is not just the distribution of the
> currency but is also a payment for security. Is there a reason to so
> drastically pay extra for security between years 5 - 15 and to pay relatively
> so little in years 1-5? Especially since the risk in Years 1-5 are generally
> the highest for both the currency and the miners?
With the 10 year to peak sinusoid, after 1 year, nominally the supply subsidy
will be >= the mature 0.25% inflation supply subsidy at 20 years. Until that 1
year point, I doubt there would be that much of a market for the ledger's units.
Keep in mind that the security equation (cost to replace block = block reward =
supply bonus + fees) heavily depends on the ledger units' actual market
purchasing power. So even with huge nominal block rewards, a ledger history
might be rewritten with low cost if the ledger's units aren't worth much.
Unfortunately, there isn't much we can do about this, other than make a high
quality ledger system that hopefully lots of people will recognize will be a
good one and worth investing in.
So having large block rewards early, although it could allow the few people
using it to wait marginally fewer confirmations... I don't think its worth the
issue of the early adopters getting too much of the supply.
Cheers,
Praxeology Guy
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