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    Author Topic: [ANN] [MARKS] Incentivize Content Creators & Build a Reputation Value Framework  (Read 32880 times)
    onelineproof
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    August 03, 2018, 09:00:15 PM
    Last edit: August 09, 2018, 03:34:55 PM by onelineproof
     #201

    I can't believe I am still arguing about this. Here we have early Bitmark investors (dbkeys and 82ndabnmedic) using their smooth-talking skills to justify the manipulation of the supply of the currency solely for the purpose of benefiting investors (just like a central bank would do). And in the same time the main website of Bitmark describes itself as a "decentralized reputation platform". If Bitcoin developers wanted to release a forking change that decreases the subsidy paid to miners, do you think that would pass? No way in hell.

    You can argue about the advantages and disadvantages of merge mining. I personally believe that merge mining is better for both decentralization and security compared with native mining. though I can see some advantages of native mining in some proportion, thus as a compromise, I proposed to let users vote on whether they support merge mining, weighted by transaction fees, and that would dynamically affect the merged to native ratio.

    But cutting out the reward from merged miners will drastically reduce the average reward per block which reduces security for users. The reward is what serves to prevent double spending. It is not the cost that matters. I can be mining and heating my house in the same time, or I can be mining with free excess electricity. Everyone has a different cost. If you want to frame it in terms of cost, then you can say it is the opportunity cost that matters. In Economics, opportunity cost of option A is what you would gain by choosing the next best option. So for a miner (merge miner or not), the opportunity cost of mining honestly is what he would gain by double spending. The opportunity cost of double spending is what he would gain by mining fairly. As the amount gained (subsidy) of mining fairly goes down, the opportunity cost of double spending goes down, thus the chance of double spending goes up.

    Thus I would say that merge miners may actually deserve a larger subsidy than native miners, because they are gaining from other coins, so they would not be much affected if they lose our rewards if they are so small compared to other coins. But I think it is simple to keep it the same. Whatever you choose (less or more reward), you need to appropriately balance it for native miners, so that the average reward per block remains the same. If not, then you are decreasing security. With this fork, the merged blocks will receive a much smaller reward, and most blocks will still likely continue to be merge mined, thus the average reward per block will drastically decrease, and result in a decrease in security for users. And for what? To give a boost to early investors so that they can make a timely and profitable exit?

    As for decentralization of merged vs native mining. As you see with Bitcoin, native mining also leads to large mining pools. This is inevitable, but individual miners can always pull out of a mining pool that causes harm. Also with 8 algos, we are very decentralized in terms of mining. Since mining is very competitive (especially with merge mining) each miner I believe has it in their best interest to specialize in 1 algo, thus it would be hard for one entity to control multiple algos.

    I will try to expose this scam as best as I can, but it is hard to do it alone. So if other people want to help concretely, then you can contact exchanges that trade in Bitmark or mining pools. Merge miners and mining pools actually have it in there best interest to reject this proposed fork as it decreases their reward. If we are successful at stopping this fork then we can continue with the current protocol and replace the current development team with one that is more serious about building a real decentralized reputation platform. I fully support free speech, so even if it's a scam, I don't think it should be illegal, just I want it exposed and people to follow a chain the puts users first, not investors.

    The uncorrupted Bitmark protocol: https://github.com/bitmark-protocol/bitmark
    Email <my username>@gmail.com 0xB6AC822C451D63046A2849E97DB7011CD53B564
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