Nexa is incredible and even has enormous potential still to be unlocked. I know this because Iām working with the technology every day to unlock this potential for users, developers and businesses. Part of that potential exists there right now, and all it takes is for people to build tools and services that use it. But other parts of this potential lie where things can be improved and upgraded.
It has been my belief for a long time that one of the biggest untapped areas of potential in cryptocurrency has been (ironically) in the economics. Most cryptocurrencies use a 'set and forget' economic model and this started from day one with Bitcoin. This model, of halving the supply every roughly 4 years until a point in the distant future when none of us are even still around (unless we can all upload our minds to the cloud), is incredibly simple. Some would argue that this simplicity is its strength. It is this 'set and forget' model that enables a cryptocurrency to be free from the economic policies of a centralised few, who have no skin in the game yet make the rules of the game. This system has even presently lead to significant global inflation and made many people poorer, and is likely to have far reaching, negative effects for years to come.
Nexa uses this same system as Bitcoin, halvening every 4 years. This means that currently roughly 7.2 billion NEXA are minted every day, and this will continue for roughly the next 4 years. This means that in the next year the supply will increase by roughly 2.6 trillion NEXA, doubling the current supply. If the price was to reach $1000 per million NEXA then the network would be spending $2.6 billion per year. This is a truly incredible sum of money to spend on security, and would be completely arbitrary and unnecessary in my opinion.
I want to consider what the results of a better potential system might look like. A better system would instead:
I am proposing a change to Nexa which will enable Nexa's emissions to be controlled by those most impacted by them and therefore are in the best position to make these decisions. I propose a system in which every Nexa holder can participate in an trustless, permissionless, annual, on-chain vote to define the emission schedule, and that the results of this vote are part of the consensus protocol for determining the emissions of Nexa.
<aside> š Please read the full details of the proposal at:
https://bitcoinunlimited.notion.site/Holder-Defined-Emissions-Proposal-296cef54140b4d7996591b67fab56ddb?pvs=4
</aside>
Otoplo will be enabling an initial opt-in, non-binding referendum in our wallets, i.e. it will have no impact on network consensus, but rather on social consensus in regards to the discussion around the proposal. Any user will be able to participate in the referendum (and the official vote should it go ahead) via the Otoplo wallet. Taking part in the referendum (and official vote) will not require relinquishing custody of any of your funds. Your NEXA will remain 100% in your control and in your wallet at all times. Any wallet can implement the protocol described in my proposal.
It is my opinion that the implementation of this proposal on Nexa will establish Nexa as a leader not only in crypto technology but also in crypto economics.
I look forward to the discussion around this topic and I am of course happy to answer any questions surrounding it (please read the full proposal first though before asking questions).