CIP: 9 Title: To-All Transactions Author: PoCC/rico666 (email@example.com) Comments-Summary: No comments yet. Comments-URI: https://github.com/PoC-Consortium/CIPs/wiki/Comments:CIP-0009 Status: Draft Type: Consensus (hard fork) Created: 2018-07-16
To-All transactions are a way of interaction of a single individual (address) with the Burst community in its entirety (all addresses). A To-All transaction triggers a payment of a sum X that is being proportionally disseminated among all existing addresses with funds above a certain threshold.
Lost coins only make everyone else's coins worth slightly more. Think of it as a donation to everyone.
There is no efficient way to burn Burst coins. One could send them to an address that is presumably without known private key (similar to 1BitcoinEaterAddressDontSendf59kuE in Bitcoin), but you never know if that private key really does not exist.
Another possibility is to send so small amounts to various addresses, that it is by orders of magnitude more expensive to retrieve that amount than its nominal value. Without any limits on "Dust" (see CIP8), it is conceivable to "burn Burst" by e.g. sending Multi-Out Same transactions with 1 Planck to random addresses.
The minimum cost of burning these Burst is the same as is minimum retrieval cost. E.g. currently a fully populated Multi-Out Same could burn 128 Planck at the cost of 735000 Planck.
Giving Burst Away
The quote above from Satoshi Nakamoto illustrates that a "forgotten private key" is equivalent to a donation to everyone. So if an individual performs such a donation to everyone and effectively burn Burst for himself, we did achieve something equivalent to a "Proof of Burn", but without actually losing the coins from the total supply.
PoS: The Other side of the coin
If we look at a To-All transaction being a "Proof-of-Burn" (PoB), then the complement on the recipient side is equivalent to Proof-of-Stake: Accounts with a Burst balance get their share from these PoB events proportional to their balance. In short, the more Burst you have, the more you earn.
Given an amount M of Burst to burn and the total supply being N. The Dust threshold for accounts is computed as
Balance > FEE_QUANT and Balance > N / (M * 100 000 000)
Your account balance is FEE_QUANT or less: No matter how many Burst are burnt, your account will receive no Plancks.
If the total supply (N) is 1980000000 and 1 (M) Burst is burnt, then the 1-Planck threshold is for accounts that have a balance of 19.8 Burst.
Because to-all transactions will adhere to dust threshold recommendations, in the case of burning one Burst, your lowest account balance in the case above is FEE_QUANT * 19.8 BURST = 14,553,000 BURST
In the case 5000 BURST are burned, the lowest account balance to receive Burst is 14,553,000 / 5,000 = 2910,60 BURST
For simplicity, let's assume there are at this moment 5 accounts A₁, ..., A₅ in existence, where A₅ wants to send 5000 Burst "To-All" and the accounts are with the following balances:
A₁: 400 Burst A₂: 700 Burst A₃: 15 000 Burst A₄: 8 000 Burst A₅: 11 000 Burst
Then we have a total of 400+700+15000+8000+11000 = 35100 Burst in existence. However, for our computations, we need to take the 5000 Burst to be sent out of the total sum to remove their self-referentiality. This leaves us with the following percentages of the accounts:
A₁%: 0.01328903654485049834 (400/30100) A₂%: 0.02325581395348837209 (700/30100) A₃%: 0.49833887043189368771 (15000/30100) A₄%: 0.26578073089700996678 (8000/30100) A₅%: 0.19933554817275747508 (6000/30100) ------------------------------------------- total: 1.0 (30100/30100) ===========================================
On the current MainNet, the number of accounts is around 70000 and the total Burst is the Burst mined so far ~ 1.96 bn Burst. The computational effort is much higher but the same principle applies.
So A₅ paying 5000 Burst To-All, will result in the following layout of transfers:
A₁: 0.01328903654485049834 * 5000 = 66.44518272 A₂: 0.02325581395348837209 * 5000 = 116.27906977 A₃: 0.49833887043189368771 * 5000 = 2491.69435216 A₄: 0.26578073089700996678 * 5000 = 1328.90365448 A₅: 0.19933554817275747508 * 5000 = 996.67774086 + 1 Planck ------------- 4999.99999999 + 1 Planck
The current balance of Burst on the Poloniex and Bittrex exchange accounts at the time of this publication (2018-08-17, see also https://explore.burst.cryptoguru.org/chart/richlist) is around 57% of the currently available supply.
This means that in case of a "To-All transaction", these exchange accounts together would get 57% of the burned Burst. At the moment, the exchanges most certainly have no process to propagate these PoS-like earned Burst to the individual account holders (i.e. pass them on).
The exchanges would be the biggest beneficiaries of To-all transactions, while the users with Burst on these exchages would be abstained from receiving the Burst they should, clearly there are two possibe consequences:
- get the exchanges to have the customers participate (pass it on)
- get your Burst in your private wallet
As 2) is detrimental for the exchanges, we believe an arrangement can be made, so exchanges implement 1)
This document is placed in the public domain.