Aug 26, 2017 · 1 min read
- Inflating the supply of on-chain currency is a highly sub-optimal solution as it doesn’t get around the free-rider problem. There’s nothing stopping someone from forking the chain and creating a ‘tax-free’ version of the chain and merging the new feature into their chain (See Zclassic which is a clone of Zcash w/o the founder reward)
- Inflation also doesn’t have an solution to entities who were waiting on the feature but didn’t receive it.
- It also introduces a capture problem: cabals can form with enough assets to vote for ‘rewards’ (read kickbacks) to politically connected groups on the chain (See Federal Reserve)
What is a better solution that: Doesn’t introduce exploitable game theory, provides feature delivery-failure insurance, and solves the free-rider problem is an event derivative. Form a group to write a specification and then open a market on Auger to payout if Plasma_Spec-10801 has been delivered by expiry time. Everyone who wants the feature to be built buy “no” shares and everyone who thinks they can contribute to the feature being created — developers ,product, project, firms— buys “yes” shares.
