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magius

Basic income in Solidar

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I still need to understand in deep how Freicoin works, so perhaps some of my assumptions could be wrong :)

As I understood the generation of coins in Freicoin happens in the same way that in Bitcoin, through merged mining in p2pools.

IMHO Basic income has to be continuous and fixed. I red that is programmed to cut it in the future, to pay miners.

Imho a not fixed basic income may have an effect on system credibility.

Is there a relationship expressed by an algorythm between the amount of coins' generation, the amount of basic income, the demurrage rate and the number of network members?

 

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This depends on how the foundation ended. Right now we have steady supply of 96 coins, witch is the demurrage of 100.000.000 coins (aprox 5%). This is destroyed from all addresses with positive balance and new coins are created.

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23 hours ago, magius said:

I still need to understand in deep how Freicoin works, so perhaps some of my assumptions could be wrong :)

As I understood the generation of coins in Freicoin happens in the same way that in Bitcoin, through merged mining in p2pools.

IMHO Basic income has to be continuous and fixed. I red that is programmed to cut it in the future, to pay miners.

Imho a not fixed basic income may have an effect on system credibility.

Is there a relationship expressed by an algorythm between the amount of coins' generation, the amount of basic income, the demurrage rate and the number of network members?

 

Hi Marc, it sound a little like you are mixing Solidar and Freicoin. Freicoin has no merge mining, all new coins are now distributed to miners and there is no basic income in Freicoin. And yes a not fixed income has a bad effect on credibility.

Solidar has an 99.9% distribution to the basic income fund and 0.1 % to miners. However this can change when price rises (miner reward may schrink).

And the 10 Solidar is now enough for something like 300k users if there are more users some day in the far... far... future the payout will be reduced. (4ksat /month is the amount for 8 billion humans -for example).

 

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Freicoin does not have basic income. It has a demurrage fee of 5% per year. This is achieved be the wallets simply destroying the funds. Simultaneously, 5% per year is newly generated and awarded to miners, 96 FRC per block. In order to come to this zero inflation system quickly, all Freicoin money supply was issued in 3 years. To experiment with alternative distribution methods, The Freicoin Foundation was created and 80% of the 'minted' currency was sent there. No alternative distribution method was ever created and the Foundation funds have been mostly untouched. We recently decided to destroy the Foundation.

 

Solidar also has all the currency issued too and has a basic income set up. To fund the basic income, there is a similar Foundation, as well as a 20% annual demurrage fee. Simultaneously with the demurrage,  20% is reissued as block reward. Of that, 0.01% goes to miners and 99.9% to the basic income Foundation. The Solidar Wallet functions identifically to Freicoin. Based on merged mining, however, the mining reward is split (is that correct @Rik8119?) Basic income is paid out through a system Rick set up on Facebook.

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I am missing some info as well:

  1. How is the basic income payd? Is it done every day of a month, or every number of mined blocks? 
  2. Where can I find info about mining the coins solidar and freicoin? I can dedicate some hashpower to it.

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