I see that this model causes a lot of positive emotions, but I will write here later why the consequences of switching to this model can very unpredictable. Don’t forget that Horizon and Pirate are currently on our algorithm. My fears are related to the fact that the hashrate as a result of these actions may be redistributed and the lion’s share will go to competitors. I’m not talking about the price behavior right now, I’m just asking a technical question. In the case of a hybrid model, how painlessly can the hashrate be reduced by half. Will this be the reason for increasing the number of confirmations for exchanges? I don’t know. @nathan-at-least

As for the price… I will give some examples of what has already happened, and because of what Zcash has lost a huge amount of hashrate this year. I need to prepare and I will edit this message a little later.

UPD1

So the first coin that I want to tell you about is Horizon (ZEN). The coin is by and large unremarkable if not for one thing. Barry Silbert is looking after it. He has a huge number of these coins both on personal wallets and on the wallets of the fund. You can check all this out. Its distribution is very centralized. With this distribution, it is not surprising that its price increased from $5 to 150 in less than a year. Barry does not hide that he pump it - he writes about it all the time

These are not my assumptions, these are the facts that I paid attention to:

Grayscale publishes all the smallest ZEN events in its newsletter, and not a word was said about Zcon.

Having exactly the same economic model as ZEC, exactly the same emission schedule and PoW algorithm, ZEN grew 30 times over the year and constantly reduced the gap coefficient from ZEC.

As a result, the ZEN hashrate grew by leaps and bounds:

These were the hashrate-power that Zcash gave ZEN.

And now I will draw your attention to one small period of time. This is two week that marked the difference between Zcash Halving day and the Horizon Halving day. It is noteworthy in it how the hashrate of coins changed.

Let me remind you that Zcash halving took place on November 18, and the ZEN halving took place on December 2. What happens to the hashrate these days, when the reduction of Zcash reward has already fallen by half, and the reduction of the ZEN reward has not yet fallen by half?

Sources:

(I have given a complexity graph for Zcash, but they are interrelated with the hashrate graph, however, there is no hashrate graph for Zcash on this resource. It can be found on other resources, but I chose the one that has both coins. Considering these graphs, it is necessary to average values of lines between days.)

On these charts, we can observe how after the reduction of the reward in Zcash network has occurred, the manners smoothly go into the ZEN network, in fact, more than doubling the ZEN hashrate chart. On the day when ZEN halving occurs, miners abruptly return to Zcash.

This my tweet about it - https://twitter.com/RuZcash/status/1334094346438799362?s=20

What I’m writing about here. It is very important to understand that the price and the amount of remuneration affects the hashrate. The hashrate of different coins on the same algorithm is communicating vessels. The increase in the hashrate contributes to the fact that competition among miners is growing and they will always be distributed to more profitable algorithms.

If we decide to take a part of their reward from the miners, to the funds or in favor of the holders, then we should expect that the miners will run away from you to another owner. I’m not talking now about those who have 500 K/sol in Australia, I’m talking about large numbers. One way or another, the profitability between coins on the same algorithm always tends to balance.

@Zooko I think it will be useful for you to read it too.

PS In Russia, there is a saying: measure 7 times, cut one off. This means that before making decisions that at first glance seem like a solution to us, it is necessary to justify your forecast with mathematical accuracy.