I created 2 topic but 90% of people didn’t understand what I said. Unfortunately the old quality is no longer here. I missed reading a lot of information here in the past.
I want to collect all the things I said and give advice.
I don’t know exactly what Ignotus thinks for Grin’s future, but I feel like something is going the way he never imagined. Of course he predicted that the Grin price would drop, but I don’t think he ever expected it to drop so dramatically. Currently, Grin daily block rewards have dropped below $3000 but still no buyers. It’s very, very sad.
First of all, I think the experiment of fixed block rewards idea is not very fair. It does not protect the first miner or the first investor at all. Then there is no reason to invest in the first place and protect the network. If you do not protect the network, that network will not work. Therefore, as I mentioned on this topic, it is a fairer solution to reduce inflation in the first year without making the first investors/miners rich. Everyone should do this self-critism. We can’t blame Ignotus because this was an untested experiment and he warned us all.
“It’s very young and experimental. Use at your own risk!”
Secondly, I would like to clarify the issue of POS, POW.
The POS side is growing and developing quite a lot. There is a strong side that processes hundreds of thousands of transactions per second, uses very low fees, and has connections to hundreds of dapps. Every day the POW side is dying and the POS side is getting stronger. There is no POW left in the TOP100 that can hold its value expect Bitcoin.
Grin was born in the dead side. Also, actually it hasn’t been born yet. Therefore, after 4-5 years, if a fully decentralized and confidential network with 1 billion transactions per second on the POS side emerges, maybe Grin will never be born.
However, there is a point that 99% cannot see. Only this situation can pave the way for Grin to become the world currency of the future. Let’s explain this. POW generates money in exchange for a certain amount of energy and effort. You don’t need goverment money directly to produce POW. You need a core, internet and electricity.
However the main source of POS is state money. Since you don’t produce the POS with any labor, you buy the POS using government money. This creates a system that automatically derives its value from government money. The value of government money is also a piece of paper, as it is not tied to anything. The connection between the gold produced by hard work and the state money was cut off years ago.
Thus, because POW is produced by labor, it is not directly tied to government money but indirectly. So what do we will do with all this information?
We will go back and copy system monetary policy of goverment money equal to gold. Grin coin can be a reserve, and new tokens can be created from Grin. This tokens can be on POS with more faster more privacy more scability. The only source for creating this tokens are fair and producing real labor Grin.
XEN made simillar system but XEN is tied to other POS tokens as a resource, and POS tokens are directly tied to government money. Also, XEN can burn and can be converted into other tokens. I don’t think the value of something that disappears from the world and burns can be permanent. In my opinion, reserve money should not be burned, but locked up like gold.
As a result, either Ignotus has to come back, or someone who can activate this idea. Grin can’t be used as Ignotus wants with the 60 second block reward and TPS he has. This is not possible. No matter how much you improve it, its privacy, scalability, fairness and speed will lag behind POS. So it makes sense for the labor-produced Grin to be a POS reserve.