Hi @bigreddmachine! Thanks for the explanation.
In your example why can’t the 900,000 RDD go to a change address but retain their coinage? Is there some technical reason why transactions sent from one address to another have to consume coinage?
Yeah, there’s a really simple reason. There is no way to tell what goes to a change address and what goes to the person you are paying. That’s the intent of the change address… No one can tell if you bought something for 900 000 or for 100 000, and no one can tell if the remainder went back to you or as a second output to someone else. So if you were to retain coin age, then you would have to make it where the person you paid also retained coin age. And I’d have a number of security concerns if that happened.
I can definitely understand your point about larger stakers not losing much in coinage during transactions. My concern is more for people in the 10,000 - 1,000,000 RDD range (which could be the majority of users if Reddcoin really catches on). Someone with few inputs could end up waiting quite a long time to stake if they’re regularly spending coinage in everyday transactions. As you say, spending coinage is like a price you pay in order to make transactions. Wouldn’t the velocity aspect of PoSV be enhanced if that price was eliminated?
You have some good concerns, and they definitely are worth thinking about. Personally, my vision of Reddcoin going viral has a lot of small holders who send and receive tips via the browser wallet, and really don’t even try to stake coins. Then you have earlier adopters and big investors who want to be able to stake that buy larger stakes of reddcoin to be able to do that. Much like how not everyone in Bitcoin has to be a miner for Bitcoin to be successful, not everyone has to stake in order for Reddcoin to be successful.
It all goes back to this: “What is the purpose of staking?” I might upset some people by saying this, and if so I would welcome them asking me questions about why I say this, but the purpose of staking is NOT to earn interest on your holdings. The purpose of staking is to secure the network in an energy efficient and low-inflation way. The term “staking” really says it all… You are putting your coins (your money) up for stake, claiming a large enough interest in the network to be allowed to help secure the network. In return for helping secure the network, you are receiving compensation in proportion to what you put up for stake. Quite frankly, small coin holders are small coin holders because they do not or can’t afford the risk involved in having a large enough stake to help support the network. They are plenty of reasons why this might be, and none of them are bad, but we can’t build a network that has a really low threshold of participation, because it then also has a really low threshold of being attacked.
This might not be much of a concern but I’m glad that we’re talking about it anyways. It’s great that we have community members and developers that make discussions like this possible.
Discussions are great. If someone can come up with a viable option that would make my points above not be a concern, I’d love to chat about it.
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