- second, many people tried out the PoB feature, but were disappointed by the low returns and left. You have to mint a long time to get profitable - in times of high burning activity you have to wait at least a year (like now)
Is there a fundamental flaw in PoB idea or is it due to poor implementation of PoB in Slimcoin?
PoB is self-regulating - if more coins are burnt, then the time to become profitable increases. This design decision has an obvious goal - if people burned too many coins, supply would decrease too much. You have to take into account that if PoB
always was profitable, then the supply would always tend to go to zero. That would be good for hodlers, but not for a currency.
So there is a certain "equilibrium burn rate". It would be interesting to calculate how high this rate is actually (afaik that has never been made), e.g. which one is the maximum burn rate if people want a positive ROI (measured in SLM) in 12 months or less. The calculation is pretty complex as PoB rewards change according to difficulty.
The equilibrium burn rate obviously could be modified (with an hardfork): setting it higher (via a higher PoB reward or a higher proportion of PoB blocks) would transform SLM into a more "hodler-friendly", deflationary currency; while the opposite would make it more inflationary.