I’ve been thinking about digital currency recently. Right now we’re going through the crypto winter. But I still find hope in the concept presented by bitcoin. I think mining pools are the way to go. It seems like an everything app like WeChat would be a good place to also include a mining pool for digital currency. If an app like that encouraged its users to conduct transactions using the digital currency that it mines within the app I think that would catch on. If it were also a Wallet and a cryptocurrency exchange I think it could be wildly popular. Imagine users using WeChat for all the regular reasons they use it now and also accumulating digital currency in the background whenever they use the app. They might not even realize that that is part of the app until one day stumbling upon their balance and seeing the app has been making them money.
With that if I were going to create a digital currency specifically for this purpose I think I would change the supply limit to be unlimited. Also in the beginning once the circulating supply hit 10 million bitcoin I would change the block reward from 50 bitcoin down to five bitcoin. Then instead of changing the block reward every four years I would change it annually. Rather than decrease it I would increase it in such a way that the total circulating supply would increase by 2% annually.
The problem with a fixed currency supply is that the buying power of the currency keeps rising which encourages people not to spend. My intention with the changes above would be to reduce that problem. I don’t know if a 2% annual increase would be enough or if it would be similar to a fixed supply because demand could be higher than 2%. But it surely would be better than having a fixed supply the way bitcoin currently does.
The intention behind not allowing individual mining or competing mining pools and only having the one mining pool possible within the app would be to help to limit the unfair advantage that very expensive minors have with warehouses for servers dedicated only to mining. Cracking down on fake accounts or any users having more than one account would be pretty important. I’m not sure how to achieve that. I suppose requiring certain financial things like checking accounts with rewards do. At least one regularly recurring automatic deposit and 12 transactions per month? I’m not sure how easy that would be to fake.