Questions from Newsletter Subscribers:
More about Calculating Rewards
For all the genius of Bitcoin, the lack of economists in the dev team is obvious. The basic rules of economics apply to everything, and cryptocurrency is no exception. In most cases, the rewards diminish over time, even if the difficulty of obtaining the reward increases, which is absurd from our perspective. We do no wish for miners to be discouraged from the beginning, and for that reason, the reward from mining in the DollarBit system does not decrease with time, but is rather dependent on the participation of the miners. Also, if we want to improve the stability and security of the system both short-term and long-term, we will need to incentivize miners not only to participate, but to maintain their participation over time. In DollarBit network, this function is executed by the introduction of the Participation Coefficient(Qp). Qp affects miners rewards by either raising the base reward marginally or considerably. If the Qp is high, the reward will be higher than the base reward, and if the Qp is low, then the reward will be similar to the base reward. However, the reward will never drop below the base reward, as we believe that the increased complexity of the computational puzzle required to find a block is more than enough to compensate for the increase in competition and participation.
/thx/
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