I have another solution -- a fixed tail emission paid for by demurrage. The result is that the value of each person's holdings decreases similarly to inflation, but there is no inflation.

The effectHere is how I would implement it:
1. Bitcoin becomes slightly more of a medium-of-exchange than a store-of-value.
21. Lost coins and dustA number of satoshis in each input UTXO are eventually recoveredburned in a transaction and cannot be spent. The amount burned for each input UTXO is equal to its age (in blocks) times its value divided by 100 million (1 satoshi/bitcoin/block).
32. The numberIn addition to the subsidy and fees, the block reward now also includes a fixed amount of bitcoins in circulation is always around 21 million satoshis. Transaction fees are still necessary, and the subsidy would continue to halve as normal.
3. Any UTXO with a value less than or equal to its 100 million times its age (in blocks) become unspendable.
Here is how I would implement it:
The effect is:
1. A numberBitcoin becomes slightly more of satoshis in each input UTXO are burned in a transaction and cannot be spent. The number burned for each input UTXO is equal to its age (in blocks) times its medium-of-exchange than a store-of-value divided by 100 million.
2. In addition to the subsidy, the block reward now also includes a fixed amount of 21 million satoshis. Transaction fees are still necessary,Lost coins and the subsidy continues to halve as normaldust are eventually recovered.
3. Any UTXO with a value less than or equal to its 100 million times its age (The number of bitcoins in blocks) become unspendablecirculation varies, but always tends toward 21 million.

This solution requires fractional satoshis. To make things simple, I propose dividing a satoshi into 100 million parts (because the demurrage cost is ¹/_{100 million}).

The number of bitcoins in circulation would vary because they increase at a fixed rate but are burned only as they are spent. However, the number would always tend toward exactly 21 million.

The cost due to demurrage would be about 52600 satoshis per bitcoin per year, or about 0.05% per year.

All bitcoins would be completely replaced every 100 million blocks, or approximately every 1900 years.

The demurrage cost is arbitrary. I picked 1 satoshi/bitcoin/block because it is simple and low. In contrast, a 10 satoshi/bitcoin/block would result in a cost of 0.5% per year, which I feel would be burdensome.

I have another solution -- a fixed tail emission paid for by demurrage. The result is that the value of each person's holdings decreases similarly to inflation, but there is no inflation.

The effect is:
1. Bitcoin becomes slightly more of a medium-of-exchange than a store-of-value.
2. As lostLost coins and dust are eventually recovered.
3. The number of bitcoins in circulation is always around 21 million.

Here is how I would implement it:

1. A number of satoshis are burned in each transaction for each input UTXO are burned in a transaction and cannot be spent. The number burned for each input UTXO is equal to its age (in blocks) times its value divided by 100 million.
2. In addition to the subsidy, the block reward now also includes a fixed amount of 21 million satoshis. Transaction fees are still necessary, and the subsidy optionally continues to halve as normal.
3. Any UTXO with a value less than or equal to its 100 million times its age (in blocks) become unspendable.

This solution requires fractional satoshis. To make things simple, I propose dividing a satoshi into 100 million parts (because the demurrage cost is ¹/_{100 million}).

The number of bitcoins in circulation would vary because they increase at a fixed rate but are burned as they are spent. However, the number would always tend toward exactly 21 million.

The cost due to demurrage would be about 52600 satoshis per bitcoin per year, or about 0.05% per year.

All bitcoins would be completely replaced every 100 million blocks, or approximately every 1900 years.

The demurrage cost is arbitrary. I picked 1 satoshi/bitcoin/block because it is simple and low. In contrast, a 10 satoshi/bitcoin/block would result in a cost of 0.5% per year, which I feel would be burdensome.

I have another solution -- a fixed tail emission paid for by demurrage. The result is that the value of each person's holdings decreases similarly to inflation, but there is no inflation.

The effect is:
1. Bitcoin becomes slightly more of a medium-of-exchange than a store-of-value.
2. As lost coins and dust are eventually recovered.
3. The number of bitcoins in circulation is always around 21 million.

Here is how I would implement it:

1. A number of satoshis are burned in each transaction for each input UTXO and cannot be spent. The number for each input UTXO is equal to its age (in blocks) times its value divided by 100 million.
2. In addition to the subsidy, the block reward now also includes a fixed amount of 21 million satoshis. Transaction fees are still necessary, and the subsidy optionally continues to halve as normal.
3. Any UTXO with a value less than or equal to its 100 million times its age (in blocks) become unspendable.

This solution requires fractional satoshis. To make things simple, I propose dividing a satoshi into 100 million parts (because the demurrage cost is ¹/_{100 million}).

The number of bitcoins in circulation would vary because they increase at a fixed rate but are burned as they are spent. However, the number would always tend toward exactly 21 million.

The cost due to demurrage would be about 52600 satoshis per bitcoin per year, or about 0.05% per year.

All bitcoins would be completely replaced every 100 million blocks, or approximately every 1900 years.

The demurrage cost is arbitrary. I picked 1 satoshi/bitcoin/block because it is simple and low. In contrast, a 10 satoshi/bitcoin/block would result in a cost of 0.5% per year, which I feel would be burdensome.