Quote from: Explodicle on September 30, 2011, 03:11:22 AM

I have big doubts about this one. So I can influence the inflation rate by moving coins between wallets? Even if it's tempered by confirmations, we'd essentially be selling votes on how to manipulate the money supply. Fortunately, the incentive to manipulate gets weaker and weaker as the wealth spreads out.

Moving coins between wallets would influence inflation rate very briefly but becomes irrelevant in the long term. Moving 10 coins with 50 confirmations to a new address and then using the 10 coins with 40 confirmations to purchase something would have the same effect of leaving the coins in the original address and then buying the thing when the coins have 90 confirmations.

Quote from: doobadoo on October 01, 2011, 01:36:27 AM

works till a large mining pool starts creating meaningless transactions in order to boost the payout. remember, miners are essentially the central bank in our system. they benefit from inflation. We saw how the time stamp flaw in the alt chains was gamed. I too thought the curve on bitcoin generation being arbitrary wasn't the right way. but i just don't see an un-gameable alternative.

The solution for that is to use ( # of coins sent)*(# of confirmations on sent coins at the time that they are sent) in the equation instead of plain sent amount. This makes it a waste of time to send yourself money every block instead of waiting to make a legitimate transaction.

Quote from: freequant on October 01, 2011, 06:25:38 AM

You can prevent manipulation by making transaction fees mandatory.

What manipulation are you talking about and how do transaction fees solve it?

Quote from: BubbleBoy on October 01, 2011, 08:47:17 AM

So you might have a dynamic indicator that tells how to modulate the daily expansion, but you still haven't solved the basic problem, how should that long term monetary expansion look like: asymptotically decreasing, constant, exponential etc.

There's no fixed long term expansion curve, that's the whole premise. It's supposed to adapt to the economy on the go.

Quote from: BubbleBoy on October 01, 2011, 08:47:17 AM

Also, the issue of control by the financial cabal remains: if I hold a large quantity of "stale" coins I can control your parameter thus inject liquidity in the market when I decide to do so.

I guess but it would be a one time only, once the coins are spent that power is gone. One way to mitigate this attack would be to use longer timespans when calculating the velocity rate changes (i.e. looking at year over year changes instead of month over month) so that the higher number of transactions included "drown" the volume of this attack. Not a perfect solution though as this would make the system react more slowly to sudden changes in the economy. Also, since a sharp increase in velocity would sharply decrease the block reward, it is within the realm of possibility that miners refuse to include that transaction in any block.