Post
Topic
Board Announcements (Altcoins)
Re: [ANN][SILKCOIN][FULLPOS][NEW.BETA V1.1.1.1 DOWNLOAD HERE]
by
m33
on 05/01/2015, 00:03:25 UTC
Soap box time:

I think this is a necessary conversation to have if this coin is to survive.
Something needs to change or all the dev team/community's efforts will have been in vain.

This coin currently has one fatal (fixable) flaw:

Its annual inflation rate is 111%.
Remember that our staking rewards are inflation for this currency.
Staking rewards are necessary to carry the network, but they must be kept at a level that does not render the currency impractical via rapid price decline.

Because of the 111% annual inflation, the value will continue to decline over time.

Can you imagine if the Federal Reserve or other central bank's policy resulted in 111% inflation?
People would literally die over that.

I'm partly responsible for this.  Maybe I should have voted a lot more times for 11%, but even 11% inflation will torpedo a currency.
Maybe I should have been more vocal about my concerns.
I know everyone wants more coins without paying for them, and staking seems like a great way to do that.
But what is the point in roughly doubling your number of coins each year if the value drops by 80+%?  You still have less value at the end of the year.

If this isn't changed, the value will eventually peg at 1 sat.

In order for a currency to be useful as a currency, it must be relatively scarce and therefore hold value.
This cannot be achieved at 111% inflation. 

Can we re-vote for staking rewards, and make it something that is a reasonable inflation rate again?
I figured I'd give it time before bringing it up, to allow the issue to become more obvious.
Have we learned our lesson yet?

/endrant

Please take a good look at tek , at 500% for more than a year now Price @2900, only diff you need to keep it for 30days . We need change the wait time to 15 days . Than we should be alright , hyp another pos also not doing well , wait time to stake is 9days but at 750% price @200