Post
Topic
Board Development & Technical Discussion
Merits 2 from 2 users
Re: "Surprisingly, Tail Emission Is Not Inflationary" -- A post by Peter Todd
by
vjudeu
on 11/07/2022, 10:37:00 UTC
⭐ Merited by aliashraf (1) ,ETFbitcoin (1)
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You want more coins? No problem, just create a new Merge-Mined altcoin, and distribute coins, based on Bitcoin shares.
Exactly. A chain with 0.01 BTC tail supply would need one million blocks (around 19 years) to produce 10k BTC. That should be slow enough to play it safe. The current block reward is 6.25 BTC plus fees. Let's assume that some block has 7 BTC reward. Then, you can grant miners 0.01 BTC for merged mining 700 times easier blocks on such sidechain. The difficulty of your altcoin can follow Bitcoin headers, it is that simple. And if 700 times easier difficulty is still too hard, then you can give miners less coins for mining easier blocks, and keep 10 minutes as a sidechain block time. Then, all miners will try to get tail supply of 0.01 BTC, and some of them will push your sidechain forward, if they hit a Bitcoin block at the same time.

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It will just have to find some way other than tail emission to deal with the future uncertainty of having possible periods of precariously low miner incentives.
Then look again at Paul Sztorc's triangle, and choose wisely: Merged Mining or big blocks? And if something else, then what it would be?