Wednesday, March 29, 2017

Transaction fees should govern all aspects of a cryptocurrency

In response to a wired article:

Instead of voting based on ownership of tokens, voting should be based on amount of fees paid in transactions. Those USING the coin as a CURRENCY, would then get to decide its design and future. If you view transaction fees as "taxes" to support the "governing" of the coin and how transactions are handled and paid for, then those who pay the most in taxes (transaction fees) should get the strongest voice in directing the future of the coin. "Pay to vote" sounds ugly because it sounds like a lobby, but it's not the same. The transactions fees conducting the voting is a real market-place legitimate force. No one other than the market place should be influencing the coin design and even new-coin production rate. Not developers, not nodes (basically the banks), and especially not miners. Marketplace voters based on fees paid is even smarter than a democratic vote where an infrequent user of the coin would get the same vote as a frequent user. In this scheme, it's a democratic currency instead of an oligarchical asset like bitcoin. Transaction fees as a percent transferred would cut down on day trading and on micro-payments that are not carrying their weight. Currencies are meant to be fluid assistants to marketplace transactions, not assets to be hoarded like bitcoin.
We will not have a good cryptocurrency until the transaction fees dictate all aspects of the coin, especially coin quantity and coin release rate. Programmers and stakeholder should never make decisions regarding a currency. The distributed marketplace should be the supreme unquestioned leader of developers, miners, and nodes, not their hapless victim. When it's functioning like this, you will find the coin will have a stable value and not reward early adopters. Greed and ignorance is what's stopping the emergence of an intelligent peer-to-peer cryptocoin.

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