I’ve read through the safecoin doc http://maidsafe.net/docs/Safecoin.pdf
And I cannot help but to think why have a cap?
I have never understand that part of crypto currency because to me it seems like we are trying to predict the value which cannot be done unless it is artificially influenced and in fact in my opinion it entices artificial influence of the value by people who hoard the coin, pump it up and then dump it, bot traders, or traders in general that add no value to the coins market because they simply trade it with the goal of getting rich and the end result is some get rich while most become poor in trading.
Also there is all this talk about natural systems. I personally like modelling man made things off of natural systems. In a natural system everything is cyclical and recycled. So why not think a few steps ahead and have a deterioration/degeneration model? Maidsafe are calling it a demand generation cycle and are saying that
Page 5, 7 The Economics of Safecoin
[“The generation and
distribution of safecoins are entirely network-led,
i.e. safecoins are only created as the network
is used and data retrieved from network nodes.
This activity is in contrast to currencies like bitcoin,
whose coin distribution is arbitrarily set to
10 minute blocks. This means that if the SAFE
Network is in great demand a large volume of
safecoins will be created, while low demand will
lead to minimal coins being generated. This
demand generation cycle has a desirable e↵ect
in that it should ensure no over supply of safecoins,
which may potentially lead to a unit price
So if there is a demand generation cycle and the generation and distribution is created by the network then why not complete the cycle to make it a full cycle like in a natural system?
If i’m living in the woods, I go out and put some time and energy into looking for some food to eat for me and my family. I find some berries and catch a rabbit. I go back to my cave, beat my chest proudly and show off my food and my catch. We eat the food, the food gives us energy, a day later we crap the food out and it goes back into the Earth for recycling and we repeat the process.
Why cant safecoin have a similar fully cyclical model of generation, distribution, purpose or usefulness and then degeneration/deterioration?
The way in which you would do this is you would add an expiry time date to each individual coin signature. The wallet will tell the user/owner of the coins when each individual coin will expire and then eventually if not used these coins will degenerate/deteriorate back into the network for new farmers to harvest and therefore complete their cycle.
Anytime the coins have exchanged hands for services or in trades their expiry date is reset. This will mean some users will attempt to game the system and create brand new wallets so that they can transfer their coins between their wallets but I am sure there would be a solution to this by requiring the receiving wallet to be on a completely separate node.
This will mean there is never a set cap and that the cap can never be 100% predictable and neither can the value.
As well as creating even further liquidity because coin owners will be prompted to make trades in the market place exchanges as well as use their coins in the app market of services instead of hoarding them or worse attempting to influence the overall value and basically stop people from getting rich and poor off of the trade market.
This idea is not completely thought out, feel free to add to it, or tear it apart.