Add wallet fee/demurrage for extra revenue

[Nagalim]

Right , so we force them to move their coins or lose them. Say we retire coins every 6 months. How much money would that earn us per year if the trading fee were p*0.01 nbt?

Something like outstanding nbt * twice per year * fee? = ~$4,000 * p per year.

The nice thing is the amount we earn is dependent on our outstanding balance.

[Hyena]

The good thing about the circular block chain is that we get our block chain size to a fixed number and that allows perhaps even mobile devices to become full nodes.

Just to get the ball rolling, let’s assume some numbers and see where we get.

Let’s say nubits gets some mainstream adoption so that 10 minutes of transactions would consume ~0.24 MiB in the block chain (~2 times less than bitcoin right now). That means the nubits block chain would grow ~34 MiB per day, 1024 MiB per month and ~12 GiB per year. Having our block chain only 1 GiB in size would be good for marketing, so let’s say we keep that.

That means the wallet has to make at least 1 TX per month for the coins to stay fresh and so that coin age wouldn’t exceed 30 days. The TX fee is 0.1 NBT. 1 GiB of transactions under current assumptions equates to 1 632 960 TXs per month. Since the TX fee is 0.1 NBT, we would get 163 296 NBT per month for TX fees at maximum. Parking would probably reduce that number, but at least it gives us an idea about the order of magnitude that we’re talking about in terms of revenue.

It would be best if we knew how many wallets there are rather than how many TXs are made in total. If we had 100 000 nubit owners then they would generate us 10 000 NBT per month as demurrage. Since 1 month could be seen too short time for TX forgetting, I would rather do it once every 6 months so the demurrage goes down to 1666$ per month when having 100 000 nubit wallets.

[Nagalim]

TX fee is 0.1 NBT,

You mean 0.01 NBT? Does that reduce it to $167/month?

Looking at the nbt rich list, I’m having trouble seeing more than 1,000 independent addresses that have a significant amount of nbt. That would reduce the earned amount to less than $20/month. Where are you getting 100,000 unique users from? Is this something you hope to do 5 or 10 years from now?

[Hyena]

Yes it’s a rather a long term solution and to be honest, block chain size needs a long term solution anyway. I don’t think the block chain should be allowed to grow indefinitely. It’s a cold hard fact that none of NuBits current stats can be used to forecast the profitability of such demurrage so we have to assume some global adoption. Also, TX fee can be changed and even made dynamic as I already described earlier in this topic. Older coins should require exponentially higher TX fee for moving. That way we can discover the perfect demurrage rate by modifying the exponent.

[woodstockmerkle]

Many years ago in the Bitcoin community, there were interesting discussions on how to handle blockchain scale. One of the more radical ideas was to organize the blockchain on tracking balances on addresses (and the deltas thereto), instead of transactions.

If it becomes protocol that no address could have less than $0.01 (any address having less than that is ‘burned’), there is a way to have anti-dust protection.

The level-of-effort to implement such an idea is of course huge. But online storage needs could at least be bounded – there are only so many NuBits, and with an anti-dust floor to account size, therefore only so many addresses that would need to be tracked.

With checkpointing, only a fixed depth of history would be required to be kept online. P2Pool had success with a finite-length blockchain.

Offline storage, of course, could hold every transaction forever.

[Nagalim]

It is already the case that any output less than $.01 is burned. Maybe I missed something subtle in what you’re saying.