Quote from: blogospheroid on April 26, 2013, 07:13:58 PM

The idea is not to make P totally stable. The idea is to make MV move along a certain growth path, and keep P stable within a certain range. This will be the expectations anchor in the proposed currency, like the certainty of the money supply is with bitcoin

But you can't determine P without knowing Q, and Q can't be determined by transaction activity. Or any ungameable measure (same as P). Therefore whatever formula you come up with for adjusting MV in response to PQ will not suit the circumstances at least some of the time, probably most. It will probably be more stable than bitcoin, but bitcoin made every effort not to be stable, so it's not a fair comparison.

Quote

Quote

Then what do you think will happen when people are cut off from trying to spend their money?

If the specs are published and discussed, then anyone joining in a new currency will be aware. It is just like those who buy freicoin even after they are aware of the demurrage.

It isn't awareness that is the question I'm asking though, it is what you believe will be the economic results. How would an exchange even handle this? It will not be very user-friendly or intuitive, and I think from what I have seen you write (note: I wholly understand you are thought processing the idea) that this will cause bouts of unnecessary deflation.

Quote

No, my comparison was not with Decrits. It was with a coin that printed more as transaction fees increased.

Well it's hard not to assume you are referring to Decrits after asking about it. As I mentioned, it is easy to make the case of how your idea Y is better than weak idea X. If I may be so bold, it is not so easy to make a case of how your idea Y is better than the Decrits idea X. Tongue

Quote

The term I was looking for and used in the last para - expectations anchor. Every currency will need one.

But does it achieve stability? Stability that is better than bitcoin is not good enough, imo. I made a bold claim, probably in this thread, that I think Decrits could be more stable than the commodities it is being measured against. The only way this would be possible is if the standard deviation of a decrit is less than that of a basket of CPI items. The network would have to be quite large and ubiquitous before that could be the case though, but still in the mean time I think it can remain excellently stable barring irrational attacks. And there are potential defenses (even automated) against irrational attacks.

Quote

Nothing can be done about off-chain transactions, those are not visible to the chain. We have to design around them.

Right, which, IMO, means using transaction activity/tx fees as any kind of indicator of P or Q is a minefield.

Quote

No, the hyperinflation point was directed towards a theoritical currency that had a feedback loop that encouraged more coinage as more transactions happened.

I think by now you know my opinion on making this type of argument.

Quote

My initial idea, as quoted was to have a pure mordor coin during an early phase of bootstrapping and transaction fees level targetting after that, minimising the need for energy after that. A steady growth in transaction fees has a good chance of encouraging some miners to stay with the coin.

You are going from point A to point C here. By what mechanic is the need for energy minimized? You haven't explained this. You'll also have to tread very carefully if you intend for mining to be the security of the network, because mordorcoin will have a way of rearing its ugly head if that is the case.

Quote

I appreciate the patience that you have shown with my ideas. Almost nothing I entered here is a criticism of decrits. Those are, my half baked ideas for a stable coin. I truly hoped that others would respond as well, to get more views. If the price of admission to a stablecoin thread is full understanding of decrits, then i can say that is a high price to pay.

Half-baked is nice n all, but Decrits is ready to serve. So it's frustrating from my point of view that people are willing to spend a lot of time and effort in coming up with some ideas that will be nicer than bitcoin without even making the attempt at understanding Decrits. Cry