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Currency
Discussion on the Bitmark, Block Reward, Monetary Supply, and Distribution.
- Bitmark (BTM), a whole coin, divisible to 8 units of precision (1.00000000)
- Mark (₥), unit of account, 1000th of a Bitmark (0.001 Bitmark), divisible to 5 units of precision (1.00000)
- Markbit (MB), unit of account, 1000000th of a Bitmark (0.000001 Bitmark), 1000th of a Mark (0.001 Mark), divisible to 2 units of precision (1.00)
Bitmark's block reward has been carefully balanced to distribute less coins to more mining entities.
The block reward is only 40% of those offered by Bitcoin and Litecoin, whilst the number of rewards per day is 5x Bitcoin, and as many as Bitcoin and Litecoin combined.
This produces a daily coin supply twice that of bitcoin, and half that of Litecoin.
- Bitcoin: 50 reward, 144 rewards per day, 7200 coins per day.
- Bitmark: 20 reward, 720 rewards per day, 14400 coins per day.
- Litecoin: 50 reward, 576 rewards per day, 28800 coins per day.
Also see a graphical representation of the currency supply of Bitmark, Bitcoin, and Litecoin
51%: If we compare Litecoin's hash rate distribution to Bitcoin's hash rate distribution, we can clearly see that the Litecoin network is several times healthier. We suppose that this is greatly determined by the number of rewards per day, as such Bitmark's expectation is to achieve a healthier, fairer, and more balanced distribution of rewards and therefore hashpower throughout the network. Our target is to have no mining entity achieve more than 40% of the networks combined power.
Flow of Money: Given that scrypt based ASICs are beginning to flow on to the mining hardware market, we suppose most mining entities will be pools powered by individual miners (people or organizations). This should ensure that in the majority of cases (and as Bitmark adoption grows) no single miner can achieve more than 1 Bitmark from a successfully mined block, with the average being measured in Marks, rather than Bitmarks. This should do much to mitigate hoarding, dumping, market manipulation, and all those things entail. Since Bitmark is designed to be a daily use currency, this fair distribution and flow of money is of vital importance.
Perceived Value (future): A single unit of account (bitmark, mark) should be perceived as having measurable value, we maintain that fair distribution combined with ease and practicality of use will achieve and maintain this.
Network Cost and Transaction Fees: A primary goal for the Bitmark project is to become a daily use currency which supports itself. Bitmark's coin supply schedule has been designed to migrate towards a transaction fee supported network from year 6 through to year 12.