Post
Topic
Board Altcoin Discussion
Re: [ANNOUNCE] EnCoin - An alternative with a completely different paradigm
by
Red
on 26/09/2011, 21:41:39 UTC
I asked how you intend to equate encoins to kwh in my first post in this thread. All I've heard is about a magical algorithm that somehow takes information impossible to predict into account to maintain the equation 1 ENC = 10 kwh accurate.

I agree. That is really the question I showed up to hear the answer to also.

I hear philosophy about why a constant value is good. I agree with that philosophy. I don't yet see how anything in the proposal facilitates that though.

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As a side note, I think I have actually come up with the beginnings of algorithm that might suffice. It is clearly only a partial solution. I haven't solved the bootstrap problem.

Technically, in my case, it's not 1 ENC = 10 kwh. It's closer to 1 ENC = 10 kwh * avg($/kwh). One ENC trades in dollars at the same price that 10 kwh trades in dollars. I don't know if 10 is the right constant either. It's a little more nebulous than that.

So hypothetically, say we had a currently running ENC system where the price of 1 ENC = $X = cost_of(Y kwh).
The goal of my algorithm is to cause the $_value_of(1 ENC) to tend toward the value_of(const Y kwh). This relationship should hold over time, even with changes in technology and changes in the price of electricity.

Again, I can't bootstrap this yet. Nor can I drive the ENC price toward any particular Y value. But if it is currently at a particular Y value, I think I can keep it there over time.

Anyone interested?