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Offline Method-X

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Proposal : "Dead Coins" Fed Back To The System
« on: September 05, 2014, 06:44:56 PM »

Here's a half baked idea I've been mulling over for the past few weeks...

One of the unique properties of cryptoassets (for better or worse) is that people die and their coins/shares/tokens essentially disappear forever. Their loss becomes everyone elses gain in the form of deflation. But what if those little "units of power" could be harnessed in more strategic ways by the system itself?

Lets say after XYZ number of blocks (i.e. ~3 years worth of blocks), private keys which have not demonstrated control over their tokens are seized by the system and kept as a "rainy day fund" (or for any other reason deemed worth by the electorate).

- This also has the side benefit of incentivising both voting and spending since both demonstrate control over your private key.

- TITAN allows for one account with pretty decent anonymity; as a result most tokens will be under the control of one master private key and not spread out over numerous addresses to maintain anonymity. This feature makes the idea I'm proposing much more practical.

- This would allow network fees to be directed as interest (as proposed by Bytemaster) while still maintaining an emergency reserve.

- Clients can automatically issue warnings to users who haven't proven control over private keys in XYZ number of blocks. This would prevent the vast majority of people from forgetting about tokens and losing them as a result.

Possible issues I foresee are :

- People forgetting about their assets / not aware of the dead coin rule.

- Some technical reason TITAN cannot allow for this.

Offline maqifrnswa

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Re: Proposal : "Dead Coins" Fed Back To The System
« Reply #1 on: September 05, 2014, 06:48:30 PM »
The system already has an inactivity fee built in to it. That will boost the value of existing rainy day funds as well as everyone else's assets.
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Offline Method-X

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Re: Proposal : "Dead Coins" Fed Back To The System
« Reply #2 on: September 05, 2014, 06:56:31 PM »
The system already has an inactivity fee built in to it. That will boost the value of existing rainy day funds as well as everyone else's assets.

Excellent! What are the properties/rules of the current inactivity fees?

Offline tonyk

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Re: Proposal : "Dead Coins" Fed Back To The System
« Reply #3 on: September 05, 2014, 06:57:59 PM »
Let me be my cynical self for a sec.,

'how do you warn dead people about their disappearing coins

... and why they need them... over there, anyway.'



Sorry, could note resist.

Seriously. Almost anything can be approved upon. Including the current 5% inactivity fee.
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline gamey

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Re: Proposal : "Dead Coins" Fed Back To The System
« Reply #4 on: September 05, 2014, 07:00:27 PM »

If no one claims the tokens it all works out the same in theory anyway without adding any FUDish rules.
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Offline xeroc

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Re: Proposal : "Dead Coins" Fed Back To The System
« Reply #5 on: September 05, 2014, 07:10:02 PM »
The blockchain will have a inactivity fee for funds that have not been moved for more than 365 days .. not implemented yet but coming!
 http://wiki.bitshares.org/index.php/Inactivity_Fees

this will (over time) prevent 'lost' shares
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Offline smiley35

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Re: Proposal : "Dead Coins" Fed Back To The System
« Reply #6 on: September 05, 2014, 07:26:28 PM »
The system already has an inactivity fee built in to it. That will boost the value of existing rainy day funds as well as everyone else's assets.

Excellent! What are the properties/rules of the current inactivity fees?

5% a year only after a year of inactivity. Activity could be as much as sending your shares to yourself. It is meant to penalize people who don't vote for delegates once a year as a transaction is also a vote.

I'm pulling this from my memory of bytemasters posts.

Offline Method-X

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Re: Proposal : "Dead Coins" Fed Back To The System
« Reply #7 on: September 05, 2014, 07:42:45 PM »
Glad to see this is already being done! A 5% inactivity fee every year is the perfect implementation of what I was proposing.

 

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