BitShares Forum
Main => Technical Support => Topic started by: comando on September 13, 2014, 12:34:03 am
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Hi,
As i know, the total of BTSX is around 2 billions. I heard from someone that the BTSX share will be burned out over time. So in the next few year, the total of BTSX will not be 2 billions anymore. My question is that if i have 1000 BTSX in my wallet, over time, i don't do any transaction and just leave them sit in my wallet for long period of time, will all of my 1000 BTSX be burned out?
Thanks,
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Hi,
As i know, the total of BTSX is around 2 billions. I heard from someone that the BTSX share will be burned out over time. So in the next few year, the total of BTSX will not be 2 billions anymore. My question is that if i have 1000 BTSX in my wallet, over time, i don't do any transaction and just leave them sit in my wallet for long period of time, will all of my 1000 BTSX be burned out?
Thanks,
Transactions fees can be burned by delegates, because they can adjust a ratio of each fee that goes to themselves (pay), and to the shareholders (burn). Your 1000 BTSX will theoretically become more valuable over time because of this, as the burning of tx fees is equivalent to paying a dividend (less supply == higher buying power per share). Now, if you leave your wallet for over 1 year, you will lose 5% to inactivity fee. You can prevent that by moving your 1000 BTSX at least once per year.
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tl;dr only fees are burned
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what about that inactivity fee I have heard being talked about before?
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The inactivity isn't a burn it is returned to supply. Voting, sending your balance to yourself, collecting your rewards (interest) or really anything that incurs a transaction fee will reset the clock.
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Post this in another thread a while ago:
During the Mumble session on Friday Sept 5, 2014 I asked BM about this and here is a summary of his thoughts:
1) Any action on the account counts, such as simply logging in to collect your interest. This is much like what banks do today with accounts that become dormant over a period of time. Also, since the platform supports an API it is possible for 3rd party software to provide a service of tending to your funds to make sure they see some activity.
2) The 5% inactivity fee provides a valuable service to the ecosystem. With most crypto currency implementations when a private key is "lost", i.e. the owner has lost access to their private keys, or very small amounts (dust) is left languishing as unspent outputs, these funds are lost forever. The network doesn't know what percentage of supply accounts for "lost" funds. With the 5% inactivity fee these funds will eventually get merged back into the network to rejoin supply.
3) As stated above this is still in the very very early discussion process. There is 10 - 11 months left to figure it out.