Post
Topic
Board Announcements (Altcoins)
Re: [ANN] ParallelCoin - DUO - SHA256 + Scrypt | Community Takeover
by
lokiverloren
on 25/06/2019, 18:42:17 UTC
On another topic, one of the things that will be changing after the hard fork is the block reward will adjust by a fixed percentage per block (blocks will be regular, unlike the current steady slowdown) that amounts to about 9% expansion of supply per year, compounded every 36 seconds.

I calculated the theoretical supply growth rate for the existing chain *if* it were to stay at a steady block rate, but however, it has been slowing down at a rate so far it has 60% of the number of blocks each subsequent year. But in theory its supply rate was about 24% In actuality, it has been closer to 4% and will steadily get worse. There is no question it has to be fixed if the chain is to survive.

This is the curve I am planning, each of the vertical lines represents a year (and it will stick to the schedule like glue with the averaging formula I have written), and works out to about 9% per year. It probably seems shocking to look at but for comparison, the supply growth rate of Steem is 10% which is not far different.

https://i.postimg.cc/hSw-tg55k/Screenshot-from-2019-06-28-16-04-47.png

Economies and supplies of durable materials (eg gold) typically have rates somewhere around 3-5% per year annual increase of supply. For comparison, the supply of US dollars has been running at around 12-15% per year so in the long run, given a stable demand for more currency, you can see the basis of the 'deflationary' value of most cryptocurrencies.

9% is a good steady rate and the other side of the equation comes from promoting the growth in demand to hold. The more people hold, the tighter supply is pushed and the effective growth of circulating currency is reduced even more.

At this point we have no concrete business proposal that makes the demand grow, but so long as we continue to work and promote it, there will be a relatively steady growth in demand, and price will 'moon' in any case, more or less, but we will be making sure that the demand gets stronger over time.

The plan involves using the DUO as a security deposit, so combined with this new supply rate, it should see a very healthy growth of price against other currencies. We will be building