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Offline FreeTrade

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Pyramid Mining to encourage distribution
« on: November 30, 2013, 03:37:27 PM »

It occurred to me that if there were some way to encourage miners to recruit more miners, we could increase the base of miners and achieve a wider distribution.

As it stands, miners are disincentivized to attract more miners - it just makes mining harder to have new miners.

If we turned that on it's head and were able give miners a downstream - say somewhere between 1% and 10% of the rewards of new miners they attract, it could lead to a pyramid, with a large base.

Possible to implement? I think so. Let's say the address receiving a coinbase transaction (mined reward) requires a signed key and in order for the block to be valid, it must award x% of reward to the key signer.

Miners then will have an incentive to introduce new miners, because they can create a key for them and will then get a % of all of their rewards.

How to generate the first keys? Either have a master key, and create 100 lucky miners at level 1, or maybe any mining address that has received coinbase rewards in excess of X is automatically entitled to sign keys for other miners.
« Last Edit: November 30, 2013, 03:39:38 PM by FreeTrade »
“People should be more sophisticated? How are you gonna get that done?” - Jerry Seinfeld reply to Bill Maher

Offline bytemaster

Re: Pyramid Mining to encourage distribution
« Reply #1 on: November 30, 2013, 06:07:20 PM »
I say we make mining irrelevant.... but if you want to have a mining system the Pyramid cannot work because it is a 0 sum game.

Any profit you make comes at the expense of the person you referred.  Unless you deceive them, they will quickly conclude they can make more money by not using your reference. 

Now if all mining must be derived from a 'root miner', the coin creator, then everyone would want to be as close to the root as possible.

I like your outside the box thinking, but this idea is inherently a pyramid scheme that will result in centralization.
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Offline FreeTrade

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Re: Pyramid Mining to encourage distribution
« Reply #2 on: December 01, 2013, 07:42:50 AM »
Any profit you make comes at the expense of the person you referred.  Unless you deceive them, they will quickly conclude they can make more money by not using your reference. 

I think we could support a rather flat pyramid with two levels - here's one way to do it.

1. If you're mining without a signed address, you can mine only 70% of the block reward.
2. If your address has mined X coins, your address can sign other mining addresses. (Level 1)
3. If you're mining with a signed address, you can mine 90% of the block reward but must mine the remaining 10% for the key signer. (Level 2)

So at the start, everyone is mining at 70% . . . then miners start to reach X coins, and start distributing signed mining addresses . . . then many addresses reach X coins . . . these users try to expand the number of miners because each new miner gives them 10% of their coins, upto a value of x/10.

« Last Edit: December 01, 2013, 07:44:33 AM by FreeTrade »
“People should be more sophisticated? How are you gonna get that done?” - Jerry Seinfeld reply to Bill Maher

Offline bytemaster

Re: Pyramid Mining to encourage distribution
« Reply #3 on: December 01, 2013, 12:30:29 PM »
Sybil attack


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Offline FreeTrade

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Re: Pyramid Mining to encourage distribution
« Reply #4 on: December 01, 2013, 02:18:49 PM »
Sybil attack

Yes, I think you couldn't go any deeper than 2 levels - but that still leaves miners incentivized to introduce new miners. Actually I think it requires relatively few code changes too.

But perhaps there are better ways to get miners to recruit new miners. Any ideas?

“People should be more sophisticated? How are you gonna get that done?” - Jerry Seinfeld reply to Bill Maher

Offline bytemaster

Re: Pyramid Mining to encourage distribution
« Reply #5 on: December 01, 2013, 02:26:02 PM »
I think mining is overrated and waistful. 


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Offline FreeTrade

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Re: Pyramid Mining to encourage distribution
« Reply #6 on: December 02, 2013, 04:37:38 AM »
Yes, I'm keeping abreast of your latest ideas, but this more about distribution than mining.
“People should be more sophisticated? How are you gonna get that done?” - Jerry Seinfeld reply to Bill Maher

Offline bytemaster

Re: Pyramid Mining to encourage distribution
« Reply #7 on: December 02, 2013, 05:34:56 AM »
Yes, I'm keeping abreast of your latest ideas, but this more about distribution than mining.

As a distribution scheme your ideas have some merit.
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Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

 

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