Hello, Sorry for the delay in replying. First of all I'm not involved with Freicoin I just posted because I thought it might be of some interest. I looked into Freicoin in a little more detail at the weekend. It turns out the demurrage is automatically distributed to coin miners. The reason for this is to encourage miners to secure the network. I'm not familiar with Silvio Gesell's work on demurrage. I'm assuming he intended the currency to be introduced and managed by a state. This is very different to Freicoin where there is no state. Demurrage works differently in these situations. I can imagine it working if it was implemented as the monopoly currency of a state. However as just one of many in a market of currencies I can't think of any reason other than the political to use freecoin :( ?? http://blog.p2pfoundation.net/freicoin-bitcoin-with-demurrage/2012/06/30 Regards Kevin On 30 June 2012 15:00, Poor Richard <[email protected]> wrote:
Thanks you, Apostolis. That is a relief. I hate to feel like the only guy in the room who doesn't get the idea.
Richard
Date: Thu, 28 Jun 2012 21:04:14 +0300 From: Apostolis Xekoukoulotakis <[email protected]> Subject: Re: [P2P-F] Freicoin - Bitcoin with Demurage (Kevin Flanagan)
To: P2P Foundation mailing list <[email protected]> Message-ID: <CAOX4E5Et6FoJro1zi4ong1EcENFig3k5xQxhYd0fCLQnPSFLYQ@mail.gmail.com
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*I wholeheartedly agree with you Richard.
* 2012/6/28 Poor Richard <[email protected]>
What do I not understand about demurage--how is not equivalent to a flat tax except that it doesn't go to the public treasury where it might do some good? Doesn't it discourage workers from saving at the same time it discourages the rich from hoarding? Doesn't inflation already cause US dollars to gradually evaporate? I don't see how demurage helps redistribute wealth downward like a progressive tax does.
I don't get it.
Richard
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