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Halving or not Halving ?

Umræður um Auroracoin tæknina og tengdum hugbúnaði
- Technical discussion about Auroracoin software and the network in general

by Soltantgris » 08 Feb 2016 21:26

Very interesting BTC talk convo the last few days - i would move some part here. Fuse point out that a hard halving may not be optimal for a currency, and maybe just a ''let's do like bitcoin'' thing. He propose a soft decrease instead.

https://bitcointalk.org/index.php?topic ... sg13815923.

I always wondered why such drastic ''halving'' was created. To limit total supply while increasing value ? Way too much speculation going about halving effet - not sure why it would be a good thing (except for some traders in god's secret).
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by BioMike » 09 Feb 2016 08:43

The whole point of mining for coins is the creation of the coins. Halving exists because you don't want an unlimited supply of coins. Satoshi argued that with the halving the transaction fees should go up to cover the expenses of miners as the economy grows. This last part is important, but often easily forgotten.

The halving is because it is easy and reliable to do from a technical point of view, unlike every block calculating what the value should be.

I understand why Fuse wants it changing in a gradual way, to prevent strong rises/drops in market price and/or network hash rate. But as the coin base drops, it is going to happen anyway, so what he proposes is a way to reduce the speculated "shock effect" (strong changes in price/hash rates).
He proposes a technical solution to achieve this, add code to gradually change the coin base. This adds extra code that has to be maintained as long as Auroracoin exists (it has to be carried over onto all new wallets that will be developed), and will be less important as more halvings will take place, but still needs to be retained to let the chain sync. I think we should be rather conservative in adding code that needs to be kept to sync the wallet in the future.
I think we should look for an economic solution, which separates it from the wallet/chain. Price fluctuations are going happen, so they have to be handled anyway.
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