Gridcoin

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Gridcoin (GRC) is a cryptocurrency that incentivizes participation in the production of science. We reward people for volunteering their computational resources towards open drug discovery, physics, astronomy, math and other community-approved research projects. Help cure diseases, fight cancer, solve mathematical equations and map the galaxy while being rewarded for your contribution. We're building an economy based on science which you can participate in every time you use GRC.

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Why I'm voting against "Proposed Rebalancing Of The Reward And Vote Weight Calculations" (lemmy.world)

submitted 6 months ago* (last edited 6 months ago) by [email protected] to c/[email protected]

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Two polls considering Gridcoin development were recently published by grctest, you can find their proposal here: https://github.com/gridcoin-community/Gridcoin-Tasks/issues/268

Putting aside concerns about active use of LLMs in creating this proposal (I think Gentoo was right when they banned all contributions created with the assistance of generative AI), let's focus on economy.

First important thing thing to emphasize: cryptocurrency is not money or currency, it is a non-financial asset, like gold. This is consensus among mainstream and post-Keynesian economists, as far as I know.

Suppose there is a gridgold mine (the only in the world) that produces 37,600 units of gridgold daily. There is another unused mine nearby, where mining is less difficult, and because of that it can yield 5 times more gridgold than the current mine with same amount of work.

So what happens after the switch to the latter mine?

Economic actors (more precisely, a rational part of them) will act on their inflation expectations. This means selling their gridgold savings and not buying any gridgold until some normalization. The consequences will be decrease in demand for gridgold and falling market price.

Savings of those who haven't had a chance to sell their gridgold will be burnt by inflation.

I think it's the opposite of what the Gridcoin community would want.

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[–] [email protected] 1 points 6 months ago* (last edited 6 months ago)

P.S. This analogy is only relevant if the number of crunchers is constant. The more people crunch, the more valuable (not as in "market value" but as "socially necessary labor time value") each GRC is because of fixed rewards. But I think getting more crunchers in short term is barely possible.