It will soon be 3 years since GRIN was born, for cryptocurrencies that is a long time to draw certain conclusions about what has been done well and what has probably gone wrong and needs to be fixed before it’s too late.
A lot of people have been inspired by the idea of a new honest and decentralized cryptocurrency. Very compact and scalable blockchain with great privacy features, no premine, no dev fee, no ico, etc. It would seem that what could stop the project from growing.
But something went wrong. If everything is so cool, why are there almost no developers left in the project? There aren’t the best folks left who believed and supported the idea from the beginning and put their soul into the project. They didn’t join in on all the scams that flooded the crypto space, and were always faithful to the idea of a free society with a free economy and money. GRIN was like a breath of fresh air to them. They undoubtedly deserved better treatment and respect. Instead, they were thrown into a bottomless abyss along with the price of GRIN which continues to fall by the day. Many of them have lost their life savings and, most importantly, their time.
In my view, saying that the GRIN is a cash and that it should not be a store of value is pretty stupid. Because cash does not mean that the value must always fall. To me cash is money which is convenient to use in everyday life. GRIN which is constantly losing its value is no better than usd, why bother with it at all, let’s use paper dollars, it has much more privacy than in any cryptocurrency. Any good money should at least retain its value, otherwise it doesn’t make any sense.
GRIN has a constant linear emission with decreasing inflation. The reason is to ensure that the distribution of coins is as decentralized as possible. Is this really the case? It’s no secret that GRIN is mostly traded on just two exchanges, GATE and TO, which makes the circulation of the coin very transparent. So, about 3 months ago one buyer appeared, who started to buy GRIN for about 1000 satoshi, gradually lowering the price level, currently he is buying at 600 satoshi. He brings 2 bitcoins and puts a limit buy order every time a previous order is filled. He also sees no problem with just taking all the liquidity by market price up to 850-1000 satoshi from time to time. By my calculations, he has accumulated at least 6.1 million coins and keeps buying. That’s, for a second, 7% of all supply. Even Satoshi with his 1 million (5.5%) coins and zec with its devs fees look more modest. What kind of decentralization can we talk about? Someone is purposefully monopolizing the coin, and we don’t know the real resources and intentions of this buyer, all capitalization of GRIN at the moment is only 524 BTC. Someone can afford to buy up all of GRIN without a problem. If there is a resource to buy that many coins then there is probably a resource to increase the price and continue manipulations in the future. Pump and Dump scheme is the future of GRIN. It doesn’t make sense for such a player to hold GRIN because of high inflation, but it does make sense to make sharp dumps when interest in the coin will be high. In the end, we never get what we expected initially. We are losing desired decentralization.
Bitcoin turned out to be a strong project because Satoshi was strong not only technically, but also in game theory. A system becomes stable if it reaches a Nash equilibrium Nash equilibrium - Wikipedia. Simply, a Nash equilibrium is the result of a scenario in which everyone wins because everyone achieves the desired outcome.
Bitcoin is a system in which miners and investors get the desired outcome. Investors know that bitcoins are finite, so they are valuable and it makes sense to keep them, miners are interested in them as long as the mining continues and the price covers all costs and makes some profit. That way there is a balance, and the system continues to work quite well. Bitcoin will have problems when the mining stops.
GRIN provides interest for miners, but not enough value for buyers. Yes the emission is time-limited, privacy and scalability are all cool, but the fact that 84,000 new coins is born every day, there is no reason to hold them because tomorrow will be mined another 84000 coins, the plan that inflation will be low in 50 years is certainly beautiful, but let’s face it. There will be thousands of new projects created during that time to compete with GRIN and the chance of winning is negligible, but the chance of dying is increasing every day.
So before it’s too late, I propose to fork GRIN, keeping all the original principles, but changing the monetary policy to protect investors’ interests, add some value to Grin to be able reach Nash equilibrium. GRIN has already begun to lose its decentralization and accumulates in single hands. Yet I believe it’s not too late.
I propose to change emission from 60 coins per minute to 1(ONE) per minute.
Perhaps this transition can be done gradually to keep miners interested. Or just give a few months for the market to evaluate this change.
The second option would be to create another coin that would keep the existing distribution of GRIN, thereby fairly rewarding those who initially believed in the project. This also could be the experimental project for testing new features like coin join or atomic swap first. And who knows, maybe the second project will succeed.
We would get inflation about 2% with a good decentralized distribution of coins which exists at the moment. If this is not done, the coins will concentrate in a single hand, and it would be impossible to resist this.
Let’s add some value for GRIN.
P.S. If someone has other solutions on how to fix GRIN let’s discuss.
