I just sent a message to Terk asking if he can take a look at the amount of hashrate thrown at NLG.
DGW3 does better re-adjustment than KGW, but as we can see it's not good enough.
DGW3 calculates diff based on the 24 last blocks.
When there's a long blocktime, and then someone mines 1 block, then clevermining takes 23 blocks, the long blocktime block is not taken into the calculation anymore, and the diff spikes.
Now I hear you say: "why don't we increase the number of blocks taken into the DGW3 calculation". Well, I did some simulations and I believe in the end that will only affect the number of blocks clevermining gets before the diff spikes.
So we need something clever (no pun intended).
There are two methods:
- create a re-adjustment algorithm that is actually pretty smart, detecting patterns, applying penalties if a lot of blocks were mined in short time.
- work out how a block reward based on block time. e.g.: `reward = 1000 * (secsSinceLastBlock/150)` with a max of, say, 3000 (after 3x the target blocktime).
Best would be: both.
Please let me know what you think about this!
I'll work out more details this evening (CEST).
At first there are more than two solutions so there is some preselection done.
Readjustments wont work, there is no clever way, because they always come late. How smart you design the algo when it rises and the hashrate drops dramaticaly your stuck with a high diff. Nothing can be done about that. Thats why Sathoshi took a lot of blocks to calculate the diff anyway... If you want to act fast, rejection is the only way so that would have a chance but probably other problems. Another way more elegant would be lowering the diff midstream but that would be a huge change in protocol.
Blocktime based reward looks promising to me but don't put a limit on either side. The coin is designed for 1000 NLG every 150 secs avg. So putting a limit on hard blocks would decrease the supply and those hard blocks are compensated with fast low reward blocks anyway. It also would be an incentive for miners to stay at high diff because the jackpot is rising.