[Kill Joy]

Economist here, I'm against it because it's only visually treating a symptom as opposed to adjusting the underlying inflation rate (as a measure of existing supply):  This creates an awkward situation where holders of bytes continually see the nominal number they hold decrease since each time this threshold gets met, their holdings get slashed.  Instead of the inflation being obscure, where a user's balance stays the same but their purchasing power goes down, the inflation is just made overt.

Ultimately it won't make a difference economically, it's just an accounting trick which reflects the value lost through inflation directly to your balance.  I think it's more complicated to implement and for users to understand than perpetual emission for an inflation policy (e.g., Dogecoin or Monero).

An issue this sort of policy creates is that it makes winners and losers on the market concentrated around the timings of these supply reductions, as opposed to smoothing out the transfer of value from holders to earners like traditional inflation does.  It will often (always?) be the case that 500 bytes the day after the supply cut occurs will not be worth nearly as much (in real value terms) as 1000 bytes the day before.  I don't think this sort of speculative market is what you aim to produce instead of inflation control.

Only logical response and I agree with what was said here.

[flavoral]

I am not sure I understand either. "So my 4k buyes that ive saved for a while will soon be 2k bytes ?"

If that is true, I think im against it for now anyway. It was hard saving up 10k bytes.

you won't be the only one tho, everyone will lose %50 of their bytes. Prices shouldn't be changing much

[PerfectStorm]

One question: If this does in fact happen, when will it be done? Any plans yet

[System[X]]

Work really hard to gain 149k bytes to buy a Cartel; just 1k more to go; then suddenly you're at 74.5k again. Or are you binning the crew feature?

My suggestion:
1% fee on transaction and purchases.

...or, going against you not wanting to change posting rewards:
- Having a set inflation goal each month. Say +5% bytes in the economy.
- Calculate the rewards for posts and threads each day based on the previous days averages and the actual bytes left to give out this month to reach +5% bytes.

Example:
Last month bytes: 3.3m
Average posts per day: 10k
Average threads per day: 1k
Set inflation rate: 5%

Bytes addition next month: (3.3m*0.05=) 165k
Bytes per post: (165k/((10k+1k*5)*30)=) 0.37
Bytes per thread: (165k/((10k+1k*5)*6)=) 1.83

This does not count for gambling winnings but math would say gambling takes more from the economy than it generates, no? The lottery tickets bought with real money will be a strain of course but if anything the post rewards will only go down a little at the end of each month.

I don't think the halving of bytes is a great idea tbh. You need something consistent that takes away bytes, like cosmetics. 50 bytes to edit username, 25 bytes to edit sig, 100 bytes to change profile pic, etc. Not a big charge, but it may add up.

I agree with some aspects of this.

But how can the Byte system be taken seriously after a 50% cut ? why save bytes if in a few months they maybe cut again ?

I would think of an alternative to this, is a 50% cut the only way and will that work in the long run.

I know i said i'm in earlier but after reading more replys, i see better ways of doing this that would work better for the long run.

Thanks

[RNM Group]

This is a good idea, bytes are very useful, they are like a tiny cryptocurrency!

[PerfectStorm]

This is a good idea, bytes are very useful, they are like a tiny cryptocurrency!

Not when you saved up/got 10k bytes...

[flavoral]

Not when you saved up/got 10k bytes...

They will be worthing the same price

[Omniscient]

I'm against it because it's only visually treating a symptom as opposed to adjusting the underlying inflation rate

This would not be the only measure I took to decrease inflation. I would review fees and other things on the site.

Ultimately it won't make a difference economically, it's just an accounting trick which reflects the value lost through inflation directly to your balance.

Partially correct. I could also start to make changes on the HF end to reflect what I feel is the value of Bytes to our website and the economy. But looking at the options I think members like Bytes being close to the penny mark. It makes math easier and just feels more natural imho.

I mentioned 50% but a more realistic cut would be 30% imho to bring total Bytes down to the level they were in November.

An issue this sort of policy creates is that it makes winners and losers on the market concentrated around the timings of these supply reductions, as opposed to smoothing out the transfer of value from holders to earners like traditional inflation does.

"Earners" are the members who post. This does transfer value from holders to earners imho. Those who post regularly are immediately rewarded for continuing to do so. While holders who didn't spend their Bytes in the economy lose Bytes (but not value per se). I want Bytes to be utilizes on-site much more and holding done much less. Members should be donating them for good posts.

Won't inflation happen again with lotterys, slots, blackjack, scratchcards ect(if you lucky to play a couple times then hit jackpot) ?

All the blackjack, slots, and scratchcards (byte versions) are pretty even and don't create the amount of inflation as you'd think. The Scratchcards purchased with BTC do however create additional Byte wealth but they are also a mechanism for site support.

Will this change effect everything ? like ppl that sell their products for bytes at discounted rate, the value of bytes rise then the discount is not a discount anymore but rather steep instead, also what about sigs market ?

People who sell Bytes should be paying attention to what the site is doing. The Sig Market imho probably isn't adjusted by members when prices fluctuate. Again, I think if 30% cut was done everyone would feel rather satisfied with the Bytes economy.

And again, just consider those who know how to earn Bytes will get an increase immediately from new Bytes earned.

My suggestion:
1% fee on transaction and purchases.

Hm...I could still do that but I want members to freely spend between each other.

Please note that unlike a real economy like the USA where money is printed and in the physical hands of people. All Bytes that exist are under my control. So I have the full ability to adjust for inflation on my end. I don't have to print more money then raise the price of gas and milk and wages. I can just remove the inflated Bytes from the economy with a single click. So if you're an economist you have to consider that difference.

One question: If this does in fact happen, when will it be done? Any plans yet

Maybe in 5 minutes or maybe in 5 months or maybe never. Thread was created to discuss the possibility.

why save bytes if in a few months they maybe cut again ?

EXACTLY! You actually help my point. If I make this a regular thing then it would imho encourage spending instead of hoarding. I think if I did it with set intervals like anytime inflation of bytes is more than 25% in a 90 day period then a Bytes cut will be done. Doing it randomly would suck imho. I could even create a stats page so you'd see where inflation was at.

The alternative to dealing with inflation is to just let it run the course and our 3.3m Bytes economy will be 30 million eventually and the 10k Bytes you have now will be worthless by comparison. I'm not sure I like how that would be.

[flavoral]

I think what happened with the v1 of the scratch cards should be enough reason why this move is needed from time to time.

[PerfectStorm]

Well in that case I am not for the change I don't want my 10 to be 5.

In anycase, if it is decided then I support the change fully.

Thank you.

[boost]

Ohh some byteonomics right here. But, I support this! Cartels at 75k ftw

[Omniscient]

Ohh some byteonomics right here. But, I support this! Cartels at 75k ftw

Cartels were 100k but I had to increase them for inflation. I think my solution is better and I can make them 100k again. Otherwise I have to raise them to 200k soon.

EDIT: Just raised the Cartel tier for Crews to 200k β.

[Almonds]

Whatever, forever!

I could see how this might make other users mad, but overall I see what you mean in regards to inflation. Crazy to think there are 3.3M bytes out there 🎉

[Cameron]

I'm all for this, the value of bytes has been gradually decreasing over time. The only problem I see is for those members who are saving for crews, imagine saving 140k/150k only to lose 30% of your balance. Would crew prices also be dropped 30% to compensate for this or would it just be tough luck for those trying to accumulate enough bytes?

---

Cartels were 100k but I had to increase them for inflation.  I think my solution is better and I can make them 100k again. Otherwise I have to raise them to 200k soon.

EDIT: Just raised the Cartel tier for Crews to 200k β.

Well that just answered my question haha.

[Omniscient]

If I make a Cartel 100k after a Bytes cut then I did a statistic to show inflation in real-time then added a policy of a 30% cut each time we hit a certain inflation rate. I think that effectively controls the economy pretty well. I don't see any real downside to this.