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namecoin / namecoin-core

Namecoin full node + wallet based on the current Bitcoin Core codebase.
https://www.namecoin.org/
MIT License
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Should Namecoin Adopt Minimal or Free Transaction Fees and Logarithmic %0-5 Inflation? #437

Open Gapcoin1 opened 3 years ago

Gapcoin1 commented 3 years ago

Namecoin already has a built in deflation through burning Namecoins to buy .Bit DNS names.

Probably most miners are not interested in the Fees anyway due to being Merge Mined.

The Blockchain does not produce any significant Transaction Fees to Miners currently, so this is the best time to have this discussion!

I think due to the constantly expanding nature of generating .Bit Names and expiring Namecoin .bit names there should also look hard into a %1-2 Inflation after 21 Million Coins.

It makes perfect sense to Merge Mine with Bitcoin. But Bitcoin is more like Gold being a store of wealth.

Namecoins are designed to be used constantly, and in which it's primary Utility is burning coins to generate .Bit DNS names!

Using some inflation will help merge mine with other Alt-Coins after Bitcoin Mining is complete. However I think once the Core Team of Bitcoin is dead and gone through the March of Time, Bitcoin will adopt a similar approach towards inflation.....

The 21 Million Hard Cap is just marketing of our time in my opinion!

Adopting FREE Namecoin Transactions might be something to consider more seriously while it's a Non-Issue, and trivial to most parties' interests.

domob1812 commented 3 years ago

Free transactions won't work, as the fee is there to combat spam. Unless you are thinking of just making the minimum relay fee zero and still relying on an eventual fee market due to the block-size limit (which might or might not be a good idea).

With respect to the inflation, what issue would that solve? Currently the rate of burning NMC is surely very low compared to the total supply, so I don't see a problem with this. Perhaps one could think of making coins used for registering names go to a pool that funds block rewards rather than burning - so instead of adding a fixed 1% inflation, we would just remove the deflation due to burning and redirect it to miners.

(Miners getting registration fees directly has various issues that have been discussed in the past I believe, but maybe it would work if registration fees just went to a pool that gets distributed to miners over a long period of time or something.)

domob1812 commented 3 years ago

Oh - I believe this should be moved to meta instead.

Gapcoin1 commented 3 years ago

I think the idea of the minimal Fee might work.......I don't like the idea of Pooling anything with Namecoins into a fund written into the blockchain code. It's much safer and simpler to use Burning Namecoin Code for .bit registrations. The miners will get it back out through the "Inflation".

For Inflation it would be wise to use a logarithmic inflation based upon amount of Burned DNS Namecoins per month. Re-targeting the inflation rate every month or so......

Maybe the internet will naturally condense down into a few reliable .bit websites ect....using it logarithmic will even out everything. And allow it to be implemented before hand with less issues.

I think it's important also to use it logarithmic because if Namecoin rises in price the Namecoin DNS .Bit registration Fee would go down in "Schwartz" which would decrease the total amount of Burned Coins. And thus cause less inflation.....

This could be set to start now or after the initial mining is done. But if Namecoin has over 1 million active websites renewing per year or more? At least the logarithmic side would take care of everything either way it flows.