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Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

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Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#81

Post by lvs »

saalweachter wrote: post #25

Oh god, they really are master trolls. The hilarious thing to note here is that -- over the short term -- this is barely different than Bitcoin's inflation rate. Bitcoin halves its inflation rate every 4 years, but 4 years is a long time in internet time. Here, let's lay them out side by side: INFLATION RATE BY YEAR YEAR BITCOIN DOGECOIN 1 inf% inf% 2 100% 100% 3 50% 50% 4 33.3% 33.3% 5 12.5% 25% 6 11.1% 20% 7 10% 16…

This is misinformation, Shibes. Mean (random) block reward halves every 100k blocks for the first 600k blocks, after which it will be 10k reward indefinitely. The first halving will happen in less than two weeks, at that point, 50b doge will have been mined.

Within the year, it's estimated that nearly 100b doge will be mined. The block target is 1 block/minute, so it will take about 20 years to reach 200b coin in circulation, assuming no irreversible coin loss.

As such, this is nowhere near the "trolling" and otherwise apocalyptic event that the wolves on HN are claiming. It's actually surprisingly sensible economic policy.

Edit: I'm actually a bit disappointed that HN seems to be having such a hard time figuring out how this works.

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#82

Post by fnordfnordfnord »

maxerickson wrote: post #72
fnordfnordfnord wrote: post #65

Earlier quoted context omitted.

It agree that might turn out very well, but people have a right to be upset when the rules are changed mid-game.

It's an important blockchain lesson, that there are no rules, only a combination of concentrated technical leadership and majority sentiment. If the blockchain this happened on was serious business you would probably see mass abandonment.

>It's an important blockchain lesson, that there are no rules, only a combination of concentrated technical leadership and majority sentiment.

Yeah.

>If the blockchain this happened on was serious business you would probably see mass abandonment.

The hard-currency fanatics would run. But where would they go?

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#83

Post by diego »

fnordfnordfnord wrote: post #65
girvo wrote: post #24

Man, I really feel like those who are upset about this truly wanted it to be "their Bitcoin" -- the cryptocurrency they got on the ground floor for and were hoping would turn out like BTC has. And to be fair, it sorted started looking that way. But now, as it's been decided to be "inflationary" (like the USD currently), they feel that the party is over. And I get it. That sucks. Personally, I think it's a great thing…

It agree that might turn out very well, but people have a right to be upset when the rules are changed mid-game.

Those were the original rules. The title is misleading, people are disappointed because they expected the devs to eliminate the perpetual generation of coins in the original software. The decision was simply to do nothing.

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#84

Post by zwtaylor »

master_shake wrote: post #43
ck2 wrote: post #35

Earlier quoted context omitted.

Does "to the moon" mean $1 per coin? If so, how is dogecoin going to create five billion USD per year via coin buyers to pay for its inflation? Unless it means something else and I am missing the point?

yes my friend, you are misunderstanding the exchange rate. There are currently ~40 million "dogecoins" floating around the internet. All the dogecoins combined are presently worth $55 million USD. Therefore each dogecoin is worth $.0014 USD. Before this announcement, there were only ever going to be 100 billion dogecoin in existence. Now they just decided that they want a 5 billion doge inflation rate per annum, Ther…

> There are currently ~40 million "dogecoins" floating around the internet.

I'm assuming you meant to say 40 billion.

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#85

Post by ceejayoz »

ck2 wrote: post #2

"ummjackson" has appeared on HN before so perhaps they will comment here as to how dogecoin could ever exceed 1000 satoshi with this decision. That is several new coins for every active person on the internet, every year. Also, the blockchain might require terabytes after a decade. ps. if you do show up, please clarify if it is going to be a zero to 10k reward which is a different situation, or actually 10k fixed per…

> Also, the blockchain might require terabytes after a decade.

Imagine saying "the blockchain might require gigabytes after a decade" in 2004. Here in 2014, you can get 64 GB on something the size of your smallest fingernail for $30-$40. Terabytes after a decade won't matter a bit.

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#88

Post by driverdan »

ck2 wrote: post #20
colanderman wrote: post #13

Earlier quoted context omitted.

Why would you trade it? You can just mine more as you need it? Mining is resource-intensive. the value today is likely worth less tomorrow unless you can "cash it out" immediately. Exactly! Not only is this like almost every other good on the planet , it encourages trade.

In 2015 it won't be resource intensive. We should be on 3rd or 4th generation asic scrypt miners by then which maybe means you'll be able to get a $20 usb stick that makes you 10k coins a month with a single kilowatt of power per month.

That's not how mining works. More miners = higher difficulty = lower rewards. Plus 4th gen ASIC scrypt in 2015 when there's only one now and no more coming for many months? Unlikely.

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#89

Post by kevinpet »

drewblaisdell wrote: post #66
Eliezer wrote: post #59

The really amusing part is that their trolling represents better economic policy than Bitcoin.

I'm sure you'll get voted up because the HN crowd loves to hate things, but I'm honestly curious why anyone would think this is objectively a better economic policy. Regardless of the inflation vs. deflation debate, the same exact thing could happen in bitcoin if it is what the community wants.

Ideally, the money supply grows at the same rate as the economy. In this case "the economy" is the segment using Dogecoin.

If you can't get it right, most people consider it better to have a bit of inflation rather than deflation. This may just be a consequence of people being more used to inflation and able to deal with it. For example, people don't mind prices going up as much as they mind their income going down.

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#90

Post by judk »

philwelch wrote: post #67
Glyptodon wrote: post #52

I'm surprised that there isn't a cryptocurrency that uses much more complex rules to determine the number of coins mined in each subsequent block. It seems like the blockchain could be used to evaluate the health of currency's ecosystem in a way similar to taking a look at the system monitor or result or cat/proc/loadavg on your desktop. Heck, the blockchain could even be used to store 'extra' system state informatio…

Milton Friedman was a monetarist, who believed that the ideal monetary policy was for the currency base to grow in time with real economic growth since this would result in neither inflation nor deflation of prices. If you could deduce economic growth from the blockchain you could make a Friedman coin.

That would require destroying coins during a recession.
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