I think we're on a good path here!
I've actually started implementing a new algorithm, from scratch. It performs faster re-adjustment, limited to 1.2 or 0.8 difficulty change between individual blocks. But it also limits the difficulty change to 3.0 or 0.33 compared to the last 120 blocks difficulty average. This means that the diff can
rise ~3.0 times in 6 blocks, and it can fall to
~0.33 times in 5 blocks. In the linked formula's the impact of the new blocks themselves are not calculated in the 120 blocks average.
The idea behind this is that it will be able to handle large joins and leaves, but won't be tricked into settling on a high difficulty too fast.
Thoughts?
I'll share the code when I'm happy with initial implementation.
I think you're shooting too high with a 3X increase. We'll have the same results we have now where it jumps too high for normal miners, and we get stuck. The drop back down is fine, but the jump up in difficulty should be smaller IMO.
As 24Kilo always tells me, we don't need to reinvent the wheel. We just need to make sure our current wheel is round.
-Fuse
I think you misunderstand. The diff will rise max with a factor of 1.2 between blocks. So if the diff is 300, the next block can be max 360.