Journal Journal: How I Would Create A Cryptocurrency 7
A successful currency should be widely available, and have a stable value that gradually loses value, not the other way around. Therefore, I propose the following:
First, this currency relies on statistical principles to function. Therefore, the miners of this coin do not get to select which transactions they process, and which ones they do not. Transactions are selected randomly, to meet statistical requirements.
Next, a trendline will be calculated on the value of past 10,000 entries to the blockchain over time. If the slope of the transaction value trendline is not decreasing at a rate of 3% per year, (I use the US federal reserve target for inflation to obtain this target) a new coin is minted and rewarded to the miner. This "interest" is the miner's reward for doing the work to make transactions possible. It also discourages hoarding of coin as it will lose value at a known rate over time.
I chose 10,000 as that should get enough certainty to measure inflation to within 1%. If there are less than 10,000 entries to the chain, the trendline computation will not be run, and no new coin will be minted. There will need to be some bootstrapping to get the process to the first 10,000 transactions.
I have no idea how to do this, and I especially don't know how to do it securely. I am also concerned about developments in quantum computing blowing up the entire cryptocurrency ecosystem. I just want to get some thoughts written down.