Parameters are ways of distinguishing one blockchain from another, making a particular
blockchain more or less suited to a particular purpose.
- Starting shares outstanding
- Target share reduction rate
- Recording fees/taxes
- Number of coins
- Required underwriting ratios
- Block generation interval
- Required underwriting durations
- Contract timespan limits
- Longevity of shares after assignment
Starting shares outstanding
Usually a big number, really big. The number of shares held by a secret key does not change from the time they are accepted in an authorized assignment until they are all assigned away in another authorized assignment. The number of shares outstanding does slowly decrease via recording taxes.
Target share reduction rate
Through recording fees/taxes, assignment invalidations and share assignment expirations, the number of shares outstanding drops over time.
Fees/taxes can be modulated to target a specific share reduction rate over the long term, for instance a 5% annual reduction in shares
outstanding which would cause a 5% annual increase in coins held for stationary share holdings.
To compensate the entities which make the system possible, and to discourage "block spam," there is a per-byte recording fee to publish a
page to the blockchain, and other fees for activities which cost something to accomplish. These fees should be quite low when compared
to brick and mortar staffed by people institutions, but nonetheless they should be present both to compensate those who bear real world
expense in making the system work, as well as to discourage unproductive behavior such as frivolous transactions or unnecessarily large
records in the blockchain.
One tax for bytes in the recorded page, another tax for bytes in public keys (for the UTXO database).
Fee/taxes also fund error checking activity by providing incentive to record "everything looks good to me" notes in the chain.
Number of coins
The "human face" of value in the blockchain. Originally envisioned as a static number, other implementations are of course possible.
One possibility would be to stabilize interest rates at a target level by adjusting coins vs shares outstanding.
Required underwriting ratios
Underwriting is the carrot and stick all in one. Carrot: charge fees for underwriting. Carrot: error checkers can score big catching
underwriters doing things wrong. Stick: underwriters can lose their underwriting shares if they are caught doing things wrong.
Block generation interval
Affects settling time for transactions, block size, and network dynamics.
Required underwriting durations
Needs to be long enough for error checkers to thoroughly verify assignments, signatures, etc. but not so long that underwriters must have a massive number of shares in order to
do their job effectively.
Contract timespan limits
Max time between proposal and recording deadline. Probably shorter time requirements for underwriters' page proposal validity assurances (time of transaction validation).
Longevity of shares after assignment
One way of cleansing the system of abandoned shares, and a way to pay coin interest without transaction fees. One form of share expiration could be an exponentially growing tax on transacting old shares. If shares are to expire after 5 years, they might be subject to a tax which increases by a factor of 2 every 4 months, so at 4 years of age the tax would be 1/8 or 12.5% of the shares taken from the shares outstanding as an age tax, at 3 years of age the tax would be 1/64, and at 5 years of age the tax would be 1/1 or 100% - automatic complete expiration of the shares.
9 May 2018
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