Getting back to main topic. Let’s take a closer “long-term” look at this again, and compare it to Bitcoin.
In all actuality I don’t see there any cause for alarm, long-term (as far as the block reward decreasing too much too fast).
PPC has actually been designed very well… a lot better than I previously understood in this regard, because we do have to factor this in:
The current PPC hash rate is about 2.2T
The current BTC hash rate is about 1,100.T
If PPC hash rate grew to the size Bitcoin is today, the difficulty would only be halved a little over 2 times.
2.216 = 35.2T
35.216 = 563.2T
563.2T*16 = 9,011.2T
So basically,
PPC hash rate needs to grow to 35.2T before the PoW block reward will be 131 coins.
PPC hash rate needs to grow to 563.2T before the PoW block reward will be 65.5 coins.
PPC hash rate needs to grow to 9,011.2T before the PoW block reward will be 32.8 coins. (almost 10x the current Bitcoin network)
So basically the following quotes from some of my previous posts are unsustainable and is unrealistic, namely:
[quote=“coolbeans94, post:7, topic:362”]Currently, PPCoin’s block reward is declining at a MUCH faster rate than Bitcoin is.
In the last week the PoW block reward has dropped by at least ~20 coins.
On 13 September 2013 the block reward was 278 coins…and today reward is 258 coins.
(278-258 = 20)
20/278 = 7.19% decline in block reward in 1 week!
If this rate were to continue week upon week for the rest of the year, we will be at a block reward of 6 by this time next year!
RED ALERT! RED ALERT! This is WAAAY FASTER THAN BITCOIN!!!
Bitcoin reward = 1/2 every 2 years.
Peercoin reward is currently reducing at a rate of = 3/139 every year!
To be more conservative, let us just assume the reward declines by only half of this amount per week, which is ~3.5%
A the end of 52 weeks (1 year) we will be down to a block reward of ~45 coins.
Even at this rate…PPCoin’s block reward is declining waaaaay faster than Bitcoin’s rate of decline. If we go 2 years at this rate block reward will be ~7 coins!
… it could be only a year or 2 before Peercoin’s inflation grinds to a complete halt.[/quote]
So basically, PPC’s 16x increase = 1/2 reward is really good. It really provides stability for the coin.
To recap:
PPC hash rate needs to grow to 35.2T before the PoW block reward will be 131 coins.
PPC hash rate needs to grow to 563.2T before the PoW block reward will be 65.5 coins.
PPC hash rate needs to grow to 9,011.2T before the PoW block reward will be 32.8 coins. (almost 10x the current Bitcoin network)
PPC hash rate needs to grow to 144,179.2T before the PoW block reward will be 16.4 coins.
Do you think these are reasonable curves then?
This means PPC will have more time to be adopted.
This will actually prevent the slashing of the supply too quickly, and shocking the currency. This is good because deflating the currency too fast is actually completely unnecessary…From an economic and sustainability standpoint, it is wise because it prevents PPC from being easily replaceable with dozens of other equally unnecessary altcoins. This ultimately means that if PPC price goes very high, profitability for PoW miners will still be there for longer, because of the 16x increase per halving, makes it take longer to faze out the PoW.