Quote from: ripper234 on December 17, 2012, 01:08:03 AM

1. Interesting

2. Should be moved to the alt currencies forum.

3. Can you tl;dr the benefits over proof of stake?

4. The idea of "Coin-burning as a tool for transition between cryptocurrencies" first appeared, I believe, in the so called "Dacoinminster' Second Bitcoin Whitepaper". If you borrowed the idea from there, credit and reference is due. In fact, I think you should refer to it regardless.

Re comparison with proof of stake: I've posted a brief overview of the economic implications of switching to proof of burn on Peter urda's "Economics of Bitcoin" blog. Basically it turns coin-holders into de facto shareholders in the future stream of fees (minus miners' supporting costs) - just like proof of stake does - but with the interesting extra feature that the coin-holders don't have to become miners to realise their share of these "de facto dividends". (Of course, that could be argued to have its downside - less incentive to become a miner perhaps? - but the potential upside is a really solid strengthening of the coin's value, helping make various attacks more expensive all round.)

Re the earlier work: no, I hadn't come across that, thanks for the reference to it! I've added a link to it on the Wiki page - though I do warn readers that the earlier work is of a centralised nature (the "trusted entity" business), and not directly comparable to decentralised proof-of-burn mining. But yes, it's still interesting that coin-burning was "in the ideasphere" already!