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DoI-SMS: A Diffusion of Innovations Based Subsidy Minting Schedule for Proof-of-Work Cryptocurrencies

  • Janez Trobevšek
  • Calem John Smith
  • Federico De Gonzalez-Soler
Chapter

Abstract

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.

Supplementary material

References

  1. 1.
    Rogers, Everett (16 August 2003). Diffusion of Innovations, 5th Edition. Simon and Schuster. ISBN 978-0-7432-5823-4.Google Scholar
  2. 2.
    Article, The Normal Distribution https://en.wikipedia.org/wiki/Normal_distribution
  3. 3.
    Image, Diar Bitcoin Distribution Estimates (21Mn BTC) https://diar.co/volume-2-issue-37/
  4. 4.

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Janez Trobevšek
    • 1
  • Calem John Smith
    • 2
  • Federico De Gonzalez-Soler
    • 1
  1. 1.CryptozBlair AtholAustralia
  2. 2.ZerozedPerthAustralia

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