Re: Official BitBay Thread |Smart Contracts Wallet UPDATE|Decentralized Marketplace

And also it creates some really interesting possibilities for transfers of liquidity for frozen coins. Similar to loans, trustless bonds and futures, etc.

Yea I can't wait to see the possibilities that pan out from these ideas ^^

And I love that you see the importance of creating a voting system so as not to send the coin down a dead end path like bitcoin and litecoin seem to be on.
It shouldn't be up to a handful of people to decide what new innovations should be incorporated into the coin.

This brings up another question:
The vote can be done by majority, but majority votes are hard to calculate. Here are the two ways I'm thinking of coding it would like to hear what you guys think:

The first way is to give the vote to the miner who wins the block. Since everyone has a fair chance of winning a block, this lets anyone who is staking make the decision. This way is provably fair since staking is fair. Its harder to game and you burn less funds. However, this might be less democratic if you consider the people with the most coins usually get the blocks. However, the people with the most coins have more at stake and perhaps the votes matter to them more anyways. ALSO this benefits users who have frozen coins and gives them this added benefit of being the bank.

The second way is based on a voting address. Basically you can cast votes in the client, send a small payment to a voting address. This might be a more democratic way to vote but it has the following challenge:
Anyone can create an address, so doing the vote by address can be gamed
also if you do the votes by simply counting them, then that encourages spam
So if this method is used, votes have to be measure by balance. The more money in the account the more weight the vote has. But this has some drawbacks, users dont always keep all their funds in one account so imagine voting from 10 of accounts just to change the interest rates
Also to prevent people from switching accounts, I would have to make the votes happen at an exact block otherwise people would vote twice(since they could move the money to another address).
This means to vote you have to be connected and miners will usually get the vote anyways. Also the most troublesome part of this is, miners would have to calculate everyones balance which means they would be running a full node. (Balance checking is not so easy unless you build an index which makes the blockchain take up tons of space)

So, I think voting can be done by miners. Its clean and simple and pretty democratic. And because i dont think we are going to change interest every block, we can probably have more than one miner vote. If we change interest twice per day, then we will get about 720 votes anyways for each interest rate change.

Yes , miners would be a good method to cast vote for consensus . Would voting twice a day be necessary ,maybe once a week will get a solid interest rate which would give good enough time to gather up volume.

So miners voting method would work like this ,you leave your client staking then it grants you or allows you to make a selected desired interest rate or would it be in increments of some value ?

Basically yes, when you are staking you would be asked to cast a vote for inflation, deflation or no change in the wallet. No vote means no change. You can always change the vote later. When you are staking it will automatically cast your vote just by sending one of the outputs to the voting address. The only reason to change interest rates once per day would be so we can see results within a month or two. Since if we all choose to deflate first (which I assume we will) then it will take about 2 months to move the rate to 60% deflated or more. If we vote twice a day we can see that target sooner.

Also the question of how much should it be per day, should it be 1% or less?

I like the idea of an aggressive interest rate change because the markets are volatile and prices can swing pretty quickly so a faster interest rate would be able to absorb that. However, there is a question of when we can achieve stability and what that target price is.

I honestly doubt we can know the target price or the target amount of deflation because that is all going to depend on demand and what exchanges we get on.

So if for example, we change interest once per day. Miners find a block every minute more or less. So we should see about 1440 votes per day. Some miners would be voting more than once obviously which is fine since they win more blocks, so they deserve it.

I'm going to guess the price will really shoot up very high when we get to 90% deflation and more. But the market might surprise us and do it sooner. Then again, I can hold a special vote in my wallet for changing the interest rate potentially if its really needed. Those types of things will need to be decided eventually.

Also, its probably worth pointing out that the rate changes will probably not be compound. I'm thinking of making it a linear curve. So 1% for the first 50% then maybe .5% for the next 20% and so forth. But it might just be compound. Or I might have it be part of a parabolic equation that makes it move at 1% for a while and then as it approaches zero the rate of deflation slows down exponentially until it hits the maximum.

Because the system is fractional(not based on decimals or floating point numbers), I probably have to mark coins in billionths. Since you have at least 1 billion coins. Although I'm not sure I want to do that yet either. It really comes down to math and protocol.

As for time to gather volume, thats a good question. If we started at 100% inflated and just voted to deflate 1% per day, then how long will it take to see the volume spike? I'm going to guess that will happen as the people notice the price gradually rising. But maybe if it was slower it would also be better?! These are all really good questions. Again, I'm not sure anyone knows the best answer here. We are in complete NEW territory. This has never been done in the history of finance before. Although there are examples of countries doing market pegs... munti would know more about that than I would though.