Strongly recommend suspension running wallet 1.5.
The value of Solarcoin is driven like all forms of currency by 2 economic functions.
1. a speculative utility function. This is users estimated utility in the future a mix of user demand and anticipated supply shifts. Speculative utility is ideally a de-minimus factor, we aren't interested in high volatility and pump and dump models. This is a 40 year project.
2. a Transactional utility function. i.e. the more participants in a currency network (those accepting the currency for buying, selling or holding), the greater the utility function.
The largest source of future value for SolarCoin will come from the growth in solarcoin Claimants. Example BTC has an estimated 1.3-1.5 million participants supporting a $3.4billion network (market cap). Each participant represents >$2,000 in utility. Most currencies including gold average $200-$3,000 in value per participant.
So in regards to SLR participation.
2.0.3 and subsequent 2.0.4 will be the chains used for granting coins and growing the network utility function. The economics strongly suggest those interested in supporting the Foundation's mission and their own economic interests should either suspend temporarily running a 1.5 wallet or running the latest version of the wallet. 1.5 may be an orphan chain with significantly lesser value going forward.
wallet version 2.0.4 will likely be released this evening.
Below is a summary of the 2.0.3 issues and solutions:
1) The calculation of "n" (average network stake time weight over 1 hour (60 blocks)) is taking up the majority of the CPU calculations.
2) With n being so low and the POW coin supply so high (34M), the Interest Rate (I) = T * 34,100,000 n will be stuck at 10 % for years.
3) Since n is being used in the calculation of Interest Rate (I) and Inflation Rate (T) = 17* (log(n/20))/100, I recommend fixing the interest rate at our intended target of 2%. This will reduce two calculations using "n" and will free up CPU usage.
4) Th real innovation of POST , the Time active fraction (F =cos^2(pi*g/n), g= fraction coin age) will be preserved to incentivize active staking and protect against a 51% attack.
SUMMARY of changes:
1) Remove inflation calculation and fix the interest rate at 2%
2) Change Transaction confirmations from 10 to 6
Benefits. better inflation targeting and reduced CPU load.
OnsightIT will post more details.
