Subject: Re: [Bitcoin-development] Chain dust mitigation: Demurrage based Chain Vacuuming

From: Andy Parkins <[email-masked]>
Date: Tue, 4 Dec 2012 09:54:38 +0000

On Monday 03 December 2012 11:19:37 Michael Gronager wrote:

> The aged coins are simply included in the block mining reward, creating
> another incentive for miners. Further, if we include all coins in this
> recycle scheme coins will never be lost forever.

Ignoring the cost of storing these never-spent outputs; there is absolutely no 
reason we need to ensure that coins aren't lost.  Nor worry about those that 
are.

The total bitcoins produced is an entirely arbitrary number -- a function of 
the 210,000 halving rate and the initial block reward.  Satoshi could have 
picked anything for them and bitcoin would work exactly the same.

Lost coins never enter the economy ever again, and so supply is slightly lower 
than it would have been, making all the non-lost coins worth ever so slightly 
more.  Effectively: price adjustments will take care of lost coins.

Andy

-- 
Dr Andy Parkins
[email-masked]