Quote from: mughat on November 26, 2013, 09:32:50 PM

Idea: automatic mastercoin fee-voting system

Mastercoin holders set individual service fee-sizes by a voting system integrated with the mastercoin protocol.

All individual fees on mastercoin services and %fees should be set/addjusted by mastercoin owners on a regular basis (once a week or so). people vote with their mastercoins what fees they want to increase and what fees they want to reduce. the system then adjusts the fees up or down according to the votes-ratio cast by the mastercoin holders. 1 MSC = 1 vote. If no one votes the fees just stay the same.

That way the fees will never have to be hardcoded or updated by the developers and they will addjust to supply and demand. If mastercoin gets a competitor we can quickly lower the fees.

If you want me to write a complete spec for this system I will will do it if you create a nice incentive for me Wink

thanks mughat
Master of science in computer systems engineering.

I would be down for trying this approach out, as long as voting was proportional to the MSC holdings (e.g. if I had 500 MSC, my vote counts for 500 votes). This ensures that decisions are made mostly weighted around the folks that have the most to lose around a bad decision, similar to how proof-of-stake protects itself against stake attacks (e.g. by not being in the actor's best interests). Also, the fee rates would need to be bounded within some kind of hardcoded sane range. We also have to be cognizant of any kind of ways this could be gamed (e.g. a syndicate forming around maxing out the MSC fees as much as possible to deflate the currency and increase the value of their holdings -- but, to counter this, as a result they could chase people away from using it, and thus drop the value of their holdings.... but just working through those kinds of thought exercises so we don't screw ourselves here.)

Probably only have fee voting periods once a month or quarter.

That reminds me, there's an altcoin out there that a guy FreeTrade made that has a voting system in it (Memorycoin I think -- https://bitcointalk.org/index.php?topic=267522.0)....I may go back and scan that thread again to check out the mechanics of it.