This would be great, especially if the capped amounts were less than bitcoin's inflation over time. 

This could be achieved by having the max block reward for a paid delegate decrease over time, from 50 this year, to less in the future, similar to how bitcoin's block reward halves each 4 years.  (Ours doesnt have to have exactly the same schedule of decline).

I think this would help to calm down the investors who have been dumping because they dont like dilution, mostly because they dont understand how large it will be, and it seems to them that it could be any amount.

Quote from: trader on October 31, 2014, 07:05:42 pm

Its 2021:

https://en.bitcoin.it/wiki/Controlled_supply

Great... an enshrined constitution that stipulates an dilution rate strictly less than BTC's inflation rate would "tie our hands" and should be carefully considered, but from a marketing perspective there is a strong case.

I think there is a huge amount of marketing value, and simply calming of the fears of those who have been dumping recently, by 'tying our hands' in this way.

Also, if we get a positive benefit from this, in terms of increased market cap, it means that we dont need to dilute as much in order to pay for the same amount of  developers/marketing, which is a great result.

Yes... because pay is something people want to "set and forget" we want all spending increases explicitly approved.... we don't want a bunch of people campaigning on 1% and then jumping to 100% once they are in.

I agree.


Step 1: Set up a 0% pay delegate with the campaign to reduce inflation.
Step 2: Get elected because people want no pay delegates, and get a safe amount of votes.
Step 3: Change your pay rate to 100%.

Rake in the profits until enough people can be notified and vote you out.

Then repeat with another anonymous name.


We have to avoid this, and that means that delegates cannot increase their pay rate without voter approval.

"Future dilution will have a hard coded limit of 10% per year and will be allocated to delegates that campaign and get approval for their pay.  This 10% limit may be raised via a hard fork with shareholder approval.     Our new "social consensus" will be that "majority shareholders rule" and everything else is subject to change.   "

Does it mean BTS will expand to 2.5billion and dilute 10% of 2.5billion per year?

Its actually more like 6.3% maximum (bytemaster changed it to 50 BTS per block max, which for a year is around 6.3%). 
50 bts per block * 6 blocks a minute * 60 minutes per hour * 24 hours a day * 365 days a year is 157,680,000 BTS that could be created in 1 year, if we elected 101 delegates at max pay.  (Which wont happen)

157,680,000 is 6.3% of 2.5 billion. 


What is a more realistic number?  Probably under 2% inflation.  Why? Because we arent going to be electing 101 paid delegates at max pay! 
We are probably going to elect way less than that for max pay.  Most delegates will probably sit at the default 3% pay which is similar to what they currently get, and therefore the actual inflation will be much lower.

Quote from: alphaBar on October 30, 2014, 11:46:04 pm

The problem initially began with the proposal to "eliminate PTS/AGS" (though that has been reversed)

Really?  When was this reversed?

When the community didnt want PTS/AGS to be eliminated.

@Bytemaster:  I know you already know this, but please heavily test the new paid delegate system, prior to release on the 5th. 

We dont want version 2.0 of this thread on bitcointalk, with smug bitshares haters getting to tell everyone bitshares is a scam and devs are stealing from everone by 'accidentally' inflating: https://bitcointalk.org/index.php?topic=809378.0

Voters choose the delegates, which means delegates are competing on price, relative to the value they are providing.

If voters want to elect you at a 5% pay rate, they will.  If they dont want to, they wont.  Its that simple!

but a new developer with no community trust or experience should not be given more pay than anyone else with no community trust or experience.

Agreed.  I doubt that anyone the community didnt trust would be elected, especially to multiple paid delegates. 

Delegates will have to earn our votes.