A peercoin price tracking operation designed to replicate the open market value of peercoin on the blockchain itself.
A peerassets project
PeerTicker will function as a peerasset, granting shareholder authority to those that donate peercoin to the effort. In this way, it will pseudo-anonymously accept and track donors such that it can fund its operation. As a peerasset, PeerTicker will require a central governing body made up of one or several asset issuers. These issuers will also be known to be responsible for the core function of the PeerTicker project, that of writing the price on the blockchain.
Cost and Operation
As a function of time, the PeerTicker governing body will print the price of peercoin with respect to some well recognized standard directly on the blockchain using OP_RETURN codes. Using the assumption that the minimum fee per block for a transaction is 0.01 PPC, and that the price tracking can occur within the allotted space corresponding to that fee (1 KB), we can now calculate the total fee required per year to write the price into every block (assuming a 10 minute block spacing):
365 days * 24 hours * (60 minutes / 10 minutes per block) * 0.01 PPC per block = 525.6 PPC/year
Donated funds would be sent to the address that is used to publish the price and would be compensated with 1 PeerTicker Asset for each PPC donated, while the address would consume 525.6 PPC/year in normal operation. Funds donated in excess of some threshold may be used to fund peercoin development as designated by the asset holders.
The simplest form of the governing body is the dictator. A single private key controls the organization and the assets, and if compromised, compromises the entire operation. This body would be responsible for publishing the price regularly, overseeing asset creation and distribution, and proposing votes. The only reward would be the power that such responsibilities inherently grant, as well as the continued operation of a PPC consuming organization. The governing body is assumed to hold a stake in peercoin’s success.
The governing body may be generalized to multiple signatures. The delicacies are mostly surrounding the technicalities of price publishing, though the organization would in general be greatly strengthened by such governance.
Asset Holder Voting
Asset-holders may perform a vote using standard peerassets protocol. A vote can only be held at the discretion of the governing body, as they control all keys and therefore must be complicit in the action for asset-holder opinion to hold sway. Calling a vote should not be taken lightly, as voting requires not only direct participation, but also the burning of asset-holder funds to signify compliance directly on the blockchain. Votes will be considered successful using a basic supermajority of 60% of all distributed PeerTicker Assets. Votes will generally have indefinite endings (at the discretion of the governing body) and can be withdrawn.
Price Trackers and Technical Operation
Each member of the governing body (most likely 1-3 entities) will have a mutually agreed upon price tracking software. Each block, one entity will generate a script with the price encoded into an OP_RETURN and sign it, passing it to the next entity. Each entity in turn will check the price and the transaction and sign the script before the final entity publishes. A minimum time frame for this will be chosen such that if multiple peercoin blocks are found in a very short period of time only one will contain the price tracking transaction. A basic PeerTicker transaction will contain one input, one change output, and one null_data output.
Peercoin Development Funding
If the governing body deems a particular peercoin development project worth funding, they will put a vote before the asset-holders. Upon passage, the governing body will add additional inputs and outputs to the next convenient price tracking transaction that sends funds from the donation pool to the appropriate developer addresses. No development project will be funded if doing so would take the funds in the donation pool below what is required for 1 year of price tracking (525.6 PPC). It is worth noting that PeerTicker can easily contract and fund developers in arbitrary units of currency simply by taking into account the very price that is tracked in that transaction. For example, if a development contract is made in USD and lasts 3 months, PeerTicker need just record the PPC/USD price and pay at time of development completion by taking the requested USD, accounting for the recorded PPC/USD price, then sending that number of PPC to the developer.
An Open IPO
The public offering of PeerTicker Assets is always open to new PPC donors. The reward rate for donated PPC will always be the same and no assets will ever be destroyed. While this implies an eternally inflating asset, the worth of PeerTicker is that of its history of price tracking which will only grow with time.
Migration to Another Governing Body or Another Chain
It must be understood that the governing body must consent for any migration to occur. Assuming governing consent, the asset-holders may vote to move PeerTicker to another governance or another chain. Such a move would simply require a 1:1 distribution of assets on the new chain and/or the movement of the donation pool to a new governing address.
Potential Asset-Holder Votes
- Reference Asset (default: USD)
- Peercoin Development Projects
- Minimum Publishing Frequency (default: 5 minutes)
- Governance or Chain Migration
- Price Tracking Algorithm (including new exchanges, and many more options)
- Minimum Donation Pool (default: 525.6 PPC)
- This list is not exhaustive