Subject: Re: [bitcoin-dev] Pseudocode for robust tail emission

From: Alfie John <[email-masked]>
Date: Sun, 1 Jan 2023 23:42:50 +1100

On 31 Dec 2022, at 10:28 am, Peter Todd via bitcoin-dev <[email-masked]> wrote:
> 
>> This way:
>> 
>> 1. system cannot be played
>> 2. only in case of destructive halving: system waits for the recovery of network security
> 
> The immediate danger we have with halvings is that in a competitive market,
> profit margins tend towards marginal costs - the cost to produce an additional
> unit of production - rather than total costs - the cost necessary to recover
> prior and future expenses. Since the halving is a sudden shock to the system,
> under the right conditions we could have a significant amount of hashing power
> just barely able to afford to hash prior to the halving, resulting in all that
> hashing power immediately having to shut down and fees increasing dramatically,
> and likely, chaotically.  Your proposal does not address that problem as it can
> only measure difficulty prior to the halving point.

> ... Since the halving is a sudden shock to the system

Is it though? Since everyone knows of the possible outcomes, wouldn't a possible halving be priced in? 

> resulting in all that hashing power immediately having to shut down and fees increasing dramatically

Which should cause that hashing power to come back because of this fee increases.

Alfie

--
Alfie John
https://www.alfie <https://www.alfie/>.wtf