Stabilizing NEOS with proof-of-stake/purchase


#1

Here’s a grand idea I had for stabilizing the price and/or encouraging retail use.

  1. Staking wallet. Coins (preferably a large number) would be taken out of circulation and stored in the wallet for a period of time. This would raise the price of the coin by reducing the supply.

  2. How would you pay the stakers? Either shut down one of the 3 algorithms to the public, or add a 4th one like Skein, and only staking wallets could mine it. (This is a technical part I have no idea how to do.) It would have a ridiculously low diff because only CPU’s would be on it. The wallets could all connect to a server and found blocks could be distributed among the stakers in proportion to their stake (the best way I think) or there could just be a minimum stake per wallet to be eligible to mine, or wallet hash rate would be proportional to the amount of coins staked.

  3. That would be a pretty big PoS at this point, being 25% or 33% of mined coins would be going to the stakers, so the stakers could digitally vote on what to do with a portion or the proceeds. One thing that could be done is offer a bonus to merchants who put a “Pay with NEOS” button on their sites. Instead of merchants or customers having to pay a transaction fee to close a sale, the merchant could get a 1%-5% premium on all retail sales made with NEOS. Of course any retail demand for a coin is going to raise the price, and being the coin has been stabilized with the staking merchants will be more amenable to accepting it.


#2

This is something we could toss around and consider - but we were thinking of somewhat of another approach. We’ll be moving a lot around over the next month with new developments/changes/etc so a lot’s on the plate as it is but stabilizing in a similar fashion has been brought up, just without modifying the current base code requiring a hard fork, etc.


#3

I like the idea for reason number 1.


#4

keep in mind one of the main problems with any proof of stake coin is the fact that it ENCOURAGES holding… you can’t make a currency where the main benefit is not using it.


#5

What about limiting the stake? A percentage of the coins you hold? So no one can stake their whole wallet, but it gives them a little incentive.


#6

But at the same time if the staking decreases the supply, it increases the value, and there becomes a corresponding incentive to spend it- you can get more for it. It will find a balance point. The stabilization effect would increase the acceptance by merchants because they have less of a reason to worry about everyone dumping their wallets before they get a chance to do the same, being unlike a crypto early adopter they need fiat to continue operating.


#7

Is there a downside to the encouragement of holding? Less supply= more demand=higher price.


#8

thats a possible idea


#9

the main downside is holding is not spending… you cant have an economy where people hold… that is how economies and especially economies of scale work


#10

That being a problem with the current US economy, the wealthy tend to hold whereas as a significant portion of the population has little spending ability. Spending equals demand which results in jobs and economic growth.


#11

On the other hand, if the wealthy emptied out their bank accounts the dollar would be trashed giving the non-wealthy even less spending power, and on top of that the banks would be unable to extend credit due to not having reserve requirements. Usually having a lot of money in savings is related to having a good economy.


#12

its actually ‘being able to afford to have money to save’ is related to having a good economy.
thats why in the 50s and such the ‘middle class’ was much larger, and why the economy was actually in a much better position.
if the wealthy emptied out their bank accounts and actually spent it, the dollar would absolutely not be trashed, the economy in the usa would actually be doing way less shitty right now.


#13

SCRYPT multipool probably best immediate method


#14

I was laying in bed this morning trying to fall asleep, watching american horror story - when a new approach for handling some of the multipool frontend came to mind. I’m going to be working on that today and I’ll let you know how that works out but we definitely support scrypt! =)

 Best regards,

syntaks


#15

True, having enough money to allow discretionary spending, not just spending for survival. Far too many people are pretty much against the wall. It’s like the Walmart problem where people have jobs, but aren’t paid enough to survive and so are forced to apply for gov’t and state benefits. Part of the reason the Walton Family are so wealthy is that the US and State gov’ts pay part of their payroll (ie. the taxpayers). How is that good for the economy? That’s a family of leeches, very successful leeches, but leeches non-the-less!


#16

could not have said it any better, it just would have had a lot more profanity.


#17

Thinking of the topic – recently ran into a couple coins featuring POS (Proof Of Stake). PPC and BCX. Seems the POS angle is intended to increase the coin possessors interest in holding rather than spending. Appears to be two basic lures for this, higher than usual transaction fee and/or periodic interest payment.

Interesting stuff, but another POS angle is that the processing could be much more simplistic and hence less cost/energy intensive than POW (CPU Vs ASIC?). Reasoning is that over time, high(ish) energy expenditure will become steadily less attractive and could become an issue for Proof Of Work blockchain processing. Also, lower cost processing would be more supportive of decentralized blockchain processing (helping protect chain integrity.) Again, interesting stuff.


#18

Money in banks already is being spent, at around a 5:1 ratio. That’s how they can extend credit, FDIC-mandated reserve fraction. Being the wealthy are more likely to be savers than borrowers, it’s the poorer people who are spending it and that’s how it circulates in the economy. I assume my savings are funding a project of someone younger and hungrier than me.


#19

I hold a bit of PPC, and it’s a good coin except for that damned 0.01 PPC destroyed transaction fee. That will keep the coin from ever going to the moon, Blockchain integrity is a benefit of PoS, even at this point it would be nearly impossible for miners to do a hostile takeover of the coin. Because of this it might end up being the coin of choice for very large holdings.