@Dodger
how is the legal status of such timelocked mining rewards? I’am not familar with such laws but i could imagine that this could cause legal problems.
I mean, witholding mining rewards and paying them out over 50 weeks has a character like paying dividends, depositing, banking, lending, or a mix of these.
What about securing the timelocked mining rewards? As it’s the implentation of Zcash so Zcash must be responsible that the valid and real owner of the future 50 week delayed rewards will get them. Wouldn’t this somehow lead to creating a fund or something like that so it is secured that the miners get the rewards. Or how will this be managed, ensured and who is repsonsible for miners getting their delayed rewards?
Did someone research the legal impact allready, if yes, what’s the outcome, link would be appreciated to the conclusion. I have serious doubts this doesn’t have some legal consequences so upfront bevor making such proposals legal advice should be taken and the result shared with the community, at least with the foundation, not?
Another thing that comes into my mind is a huge level of centralization involved with this. Just to compare it to a given POS design by a given currency i have researched where you have the option to lock your coins for 1 week up to 2 years and choose whatever period and with it higher interests you get with a predicted 50 week timelock there are no options left other than accept or leave, which again in my opinion is a high level of centralization.
This leads me to the next problem i see. My mining reward is timelocked for 50 weeks, right? But i don’t get any interest of it, again right i guess. Where is the deal for the miner? Simple example with a budget of let’s say $1500 available and ProwPOW taken as it seems one of the algos possible for the 2nd mining algo with 1080ti gpu and electricity rate of 10 cents per kw/h.
1.) GPU example: The gpu miner has to pay daily $0.48 for electricity, makes around 175 per year for electricity The price for the 1080ti gpu due ebay for new one is about 1.150-1400. Means with $1,500 investment you have 1 gpu for mining and paid electricity for 1 year.
2.) Direct buy example: With $1,500 i can buy about 30 ZEC right now. There is absolutly no intention why i should buy mining equipment and than way some 50 weeks to have my mining rewards in my pockets, maybe.
3.) POS example: As direct buy is anyway more of interest it’s just logical that getting interest from a given coin is even more interesting. So with $1,500 invested into a given POS coin X and an interest of 5-15% i would have from the original 30 X units 31.5 - 34.5 X units currency.
I made these 3 examples just to make it clear that there that it makes zero logic someone to begin/continue mining with delayed POW rewards as there are way better options left for someone investing instead into hardware and electricity.
Than what about the transaction fees. Each timelocked reward has than again a transaction fee attached even further lowering the mining reward or how is the payout planned to happen?
Next question. How would this effect the dev reward %, are these as well time locked? I doubt but still asking.
What about the miningpool fee, when does the 1, 2 or 3% mining pools take effect and are calculated? For each paid out reward or directly when mined?
Anybody asked allready the question how you think the miner, no matter if the private miner or the one with 10.000 gpu mining facility will pay for electricity meanwhile until they receive their reward?
I actually even could see a legal problem, may sound strange, with discrimination. I mean Asics get paid out directly and immediatly, gpu’s get paid out timelocked, there is a big piece of discrimination involved. I very good could imagine that at least in the EU this is considered discrimination even it sounds abstract.
Security question. If i remember right i readed that in case of an attack Zcash and the miningpools could react fast but at at cost that all mining rewards generating at the given time on the given attacked miningpool will be worthless. How would this scenario affect the timelocked mining rewards?
Some perosnal notes. I personally refuse to lock my coins even for 1 month on given POS coins, what’s left for a 12 months locking period, but that’s just me of course.
I predicted in the harmony blossom topic allready that this will be a major fail upgrade and approach. Now with the time locked gpu rewards i’am even more convinced that this upgrade is the most useless ZEC update/upgrade ever with most resources wasted for nothing.
I doubt, as by now many times, that any proper researches have been done, this inclused the whole blossom harmony upgrade as well as the legal aspects of the timelocked gpu rewards. Leave alone the asic question long bevor they got announced. The hard it may sound, but these approaches without research don’t convince me that the last and next 2 years the ZEC team knows where they are heading at all.
In case, i doubt it, someone can answer the questions, thx in advance.
All you guys responding allready missed the most important part in the proposal. This locking is ONLY for the new GPU algo, NOT for the current Asic algo…