One of the things that attracted me the most about Waves Platform was the deflationary monetary system back in 2016. The token supply was set to 100 million Waves which is clear and transparent. The challenge is to make this model economically sustainable. The easiest and simplest way is to give up and fall back to an inflationary model which was never ever proven to be sustainable in the long term by any central bank or government. Correct me if I’m wrong.
This proposal to change the monetary system, fundamentals of Waves Platform does not come from the community, miners or it’s users. This is not an upgrade or “enhancement” but a change in the fundamentals of the Waves protocol and will have consequences. Waves Platform was founded by money, raised from investors back in 2016. These investors believed in the core fundamentals of the whitepaper and should be respected.
I would like to propose a counter proposal where we keep the deflationary monetary system intact. It’s a short write up since I have very little time today. But we have to do something since Waves HQ really wants to push this through.
It would be great to work this out in more detail as a community.
It goes as follows:
Waves Platform (HQ) is creating two smart contracts.
The first contract is a redeem contract where users can send their WCT and MRT in return for Waves. For every WCT or MRT the sender will receive 0.5 Waves instantly.
At the same time the redeem contract will send 0.5 Waves to a second contract.
The second contract will be used to reward miners in the long term, let’s say ten years.
For every new generated block the contract will release Waves to the generator of that block as an additional reward.
There are 9 million MRT and 10 million WCT in circulation so the second contract will end up with around 9.5 million Waves.
In total 19 million Waves need to be bought back from the market to fill the redeem contract. Which can be achieved very easily if you look at the amount of money Waves raised till date.
What amount the new block reward will be needs to be determined.
~1440 blocks a day * 365 = 525600 blocks a year.
By 10 years it means 1.81 Waves per block
By 20 years it means 0.9 Waves per block
Of course, this could be descending. Start with 6 Waves per block in year one and 0.1 Waves per block in year 20 for example.
WCT and MRT should never have been issued in the first place. Rewards should be payed in our core token Waves. Same as for being a community member, just use Waves. We want Waves to be used for everything and all the time right? This process is part of maturing the platform, admitting mistakes and clean it up. It is something what hasn’t been done by any other blockchain so far yet.
As a miner, I do NOT approve any piece of code that could alter the total supply in any way.