Quote from: Shadow_Runner on February 23, 2014, 04:05:26 PM

Quote from: sussex on February 23, 2014, 03:58:48 PM

Quote from: Shadow_Runner on February 23, 2014, 11:39:59 AM

Well I mined few hours ~1500 AIR and feel stupid right now, if block reward will be changed to x10 or more later.

If I understand this correctly, which I might not, the block reward will only go up if the price goes up and there is substantial interest in the coin - so you should be better off having mined early.

Happy to be corrected by the OP if this is wrong.

Well, let the OP confirms that. Coz I'm not clearly understand. Maybe coz my eng is bad.

That is correct. I would guess that Shadow_Runner probably profited the most (he was the dominant miner in the first group of 720 blocks I believe) from the first stage. The block reward will only drop significantly if the exchange rate rises by the same inflation % that the higher block reward would cause.

Network hashrates did not increase significantly over the night, so the inflation rate (projected) for the first 24 hours has dropped from 0.96% to 0.74%. Normally, there is supposed to only be 0.1% inflation, that trends down to 0 if the exchange rate is stable. If the exchange increases faster than our goal of 5% per week, then block reward will increase as well. However, that doesn't reduce the value of the coins currently being held or that have been mined before, because we ensure that 5% is always higher than the increase in block reward so the exchange rate doesn't go down.

This is what we mean by "effective" inflation.

This means that, right now if the development team does nothing your coins will drop in value by about 0.74%. (note: not 74%, 0.74%) So if 1 AIR = 1 BTC before, now 1AIR=0.926BTC now.

However, our development team doesn't plan on doing nothing, and it means we just have to gain 5.75% instead of 5% one week to offset the balance until we release the new wallet that adjusts the block reward dynamically on the exchange rate.