DoI-SMS: A Diffusion of Innovations Based Subsidy Minting Schedule for Proof-of-Work Cryptocurrencies
Fifty percent of the world’s net wealth belongs to one percent of the population. The emergence of Cryptocurrency has brought about a rapid disruption across many industries but none more than Finance and Economics. Due to the inherent flaw in Bitcoin and by extension 99% of Blockchain based Distributed Ledger Technologies, “Crypto” has succumbed to the same fate as Fiat, riddled with systemic issues and mass centralization of supply. This is all due to the inflation model otherwise known as the “halving-mechanism”, one of which no one has seemingly questioned. This paper seeks to solve these problems with an alternative model for incentive and inflation. In replacement to the standard halving-mechanism employed by the greater majority of Cryptocurrencies to-date, we demonstrate the modeling of an inflation schedule guided by the theory, Diffusion of Innovations.
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