I think a better approach for coins redistribution would be to create thresholds for three classes of accounts:
1) spam/dust account x < 0.5 mc
2) low income account 0.5 < x < 10000 mc
3) high income account x > 10000 mc
Then the rules would be the following:
- spam/dust accounts gravitate to zero over time (decay with fees)
- low income accounts gravitate towards middle threshold 10000 mc (grow with interest)
- high income accounts gravitate towards middle threshold 10000 mc (decay with fees)
EDIT: plus add the rule that if any account hasn't been spent from for a period of time,
the interest (if any) drops to zero, the fees start to apply (if haven't before).
This will allow dead accounts no matter of which class to eventually decay to zero.
Just my two cents.
Why exactly must people lose their money for participating in the currency?
Nobody has articulated that need to my satisfaction.
I agree with you, no need to lose money and
we already have bitcoin for that.
Actually what I just described wouldn't work as people would just start splitting their accounts as they get to the middle threshold and above.
There is a difference between losing control of your private key and losing currency by design. Why must the currency be redistributed among it's users?
Everyone is still addressing how it should be redistributed, not why.