Post
Topic
Board Altcoin Discussion
Re: [DASH] Dash - Building the IoM | Dash Nation Progress Thread
by
TaoOfSaatoshi
on 14/04/2016, 10:12:26 UTC

I don't really understand the proof of labour proposal either.

If you've ever traded on an exchange then you understand it.

Where do you think the liquidity comes from to trade when you're on an exchange ? Not from the blockchain.

The exchange creates it for you as a credit to your account. Think of the exchange therefore as a small decentralised economy that could not function without the "flow money" that the broker creates.

But exchanges only deal in already existing value. What happens when new value is created ? How does that get monetised ? Where do you get the liquidity for an economy to function on an ongoing basis as wealth is being created ?

One way is to simply chalk up the number of "work days" you've done this week on a tree. Those chalk marks then become potential monetary units which can be traded for goods and services because they denominate your own "value delivery" into the economy. (The chalk marks therefore represent the 'flow money' in your micro economy).

In the real economy, you get paid a salary - not with money that existed a year ago, but with flow money that is constantly being created and who's liquidity is underwritten by the ongoing societal work in progress. But it needs to have a capital base - thats where your base money comes in. The blockchain tokens.

Suffice to say, if one hasn't got a "flow economy" to underwrite with one's shiny new tokens, one ain't got zip in terms of adoption cos thats all base money is good for. Simple "paying for stuff" on the other hand, can be done with numbers in any denomination regardless of blockchain performance or characteristics.

 
Oh wow, that's something else! I think I get it now. That's way on another level. Those guys definitely should try again to get their project funded!

The competition for DGBB funds will only get more intense...