Post
Topic
Board Development & Technical Discussion
Re: Proposal to Address Dormant Bitcoin:Recycling Lost Coins into the Mining Process
by
o_e_l_e_o
on 02/08/2023, 06:01:10 UTC
Notice the above proposal does not increase the supply of BTC, it treats all BTC the same regardless of it's history/owners, and it does maintain a very good incentive to mining.
Economically speaking, your proposal is really no different to raising the supply and having an endless emission of bitcoin.

In your proposal you take a fee of (for example) 0.5% from every coin every year. Each year, everyone loses 0.5% of their coins and gets 0.5% poorer.

Alternatively, by raising the supply and minting an additional 0.5% of the cap each year, then everyone owns the same amount of coins, but a smaller proportion of the overall supply. And so each year everyone gets 0.5% poorer.

The end outcome is the same regardless of which method you choose.