Disclaimer: My technical knowledge is Not Deep.
I have been thinking quite a lot about the pros and cons of lost coin recirculation. I think this is a great opportunity to pioneer an important standard that (imo) is underdiscussed in the cybercoin mindsphere.
The basic idea is that coins that haven’t moved or proved their liveness should be reclaimed by the network and distributed either to miners or to holders proportional to their stake.
- Maintains long-term stability of monetary base = Very Good. It does seem very important that the supply of a dominant unit of account should be predictable.
- Could provide miner rewards (or PoS-like rewards, proportional to everyone’s holdings?) after issuance is complete. Nobody knows how the fee market will work post-issuance, and it might be worthwhile to provide additional incentives to securing the network, especially if ZEC is still pure POW.
- In the case of hypothetical PoS-like rewards:Rewards for all users relative to their holdings. This enriches users and founders alike. (this is a reason why I like PoS for the future of Zcash, but that’s for another thread)
- Removes old UTXO’s - My understanding is that this matters on a technical level. I don’t really understand why, or how much it matters, but I think this is “technical debt”? Sorry if I’m using the term improperly.
- I expect the biggest objection to be philosophical. People can’t just sit on their private keys forever and forget about 'em while expecting the funds to still be there. This seems like an ideological problem more than anything (“cypherpunk ethos”), and personally, I’m not super worried about it. I think third parties (exchanges, hardware wallets, software wallets) could automate migration / remind you to move your coins before losing them.
-Long-term storate requires a trusted custodian/third party, unless you can shoulder the responsibility of proof-of-liveness (not sure if this is a con, but people will prolly view it as such)
-Adds mental overhead (I don’t think this is a huge deal, as cybercoins are already super hard to use, what’s 1 transaction on a (potentially) biannual basis?
Specifics to consider:
- How often should proof-of-liveness be required? 2 years? 4 years? 10?
- How would this be implemented? (Don’t ask me!)
Links to Other ppls thoughts:
- Zooko: https://twitter.com/zooko/status/1050487318157516801 (<— The reasoning here makes sense to me)
- CSW : https://medium.com/@craig_10243/fixing-op-fals-fd157899d2b7 <— The reasoning here (Lost coins = Lost value to the network) does not make sense to me, but i am open to an explanation!
Please share any and all thoughts you have! If other people are discussing this, please share links!
Please keep an open mind! I also thought it was a terrible idea at first. Don’t be shy, I think it’s important that this forum becomes a productive place to brainstorm.