Dash Max Supply

lorien

lorien

New member
Hello everyone,
Could you please explain me the minimal and maximal possible total supplies of dash?
I've googled and found different answers. I have not found explanation in white paper.
If you want to answer with link to some document please do it only if that documents explains in details the supply algorithm. If it just states some number it is not an answer.
Thank you.
 
As far as I understand:
90% per block is the constant supply (for miners and MN).
10% is the budget - treasury. Any unused budget coins results in coins never created.
So the total supply depends on, how much of the treasury we use every month, to develop DASH.
 
Friend said:
As far as I understand:
90% per block is the constant supply (for miners and MN).
10% is the budget - treasury. Any unused budget coins results in coins never created.
So the total supply depends on, how much of the treasury we use every month, to develop DASH.
Click to expand...
You are right but this answer is uncomplete.

The block reward is not steady. It was 5 dash per block at the beginning and it decreases by 7 % annually. Currently it is around 4 dashs per block if I am not mistaken. However, the number of dash per block depends on the hashrate of the network. As we cannot predict what the hashrate of the network will be, we cannot predict what the final supply will be.

"Unlike the number of Bitcoins in which the number is known in advance, Dash have a maximum theoretical limit of approximately 21.3 million coins by 2050 with a slow issuing curve. However the real number of coins can be reduced to something like 16 or 17 million coins in case the hashrate of the network brings the mining reward lower in the near future." See here : https://dashpay.atlassian.net/wiki/display/DOC/Legacy+FAQ#LegacyFAQ-Monetaryissuance
 
Yes, it's such a messy thing. At the very beginning, one of Evan's ideas / worries was that maybe people would stop mining because the rewards are not profitable. So Xcoin or Darkcoin started life with an algorithm that would cause the rewards to be larger if the hash rate was low, and lower if the hash rate was high and healthy with a minimum payout of 5 dash. In fact, this little algorithm is what caused the "instamine" along with the general flaw of Litecoin/Bitcoin and all coins based on POW, which has rewarded early miners with the most coins. It simply made it worse. I am sorry, but I can't find the original algorithm??

Anyway, next, Evan received pressure to limit the number of coins. Since this could be done for the "future" and would have no ill effect on anyone, he decided on the 7% reduction per year (approximately) which is a smoother reduction than that of Bitcoin, which halves every 4 years. but gives similar results. Even then, he didn't think the hash rate would stay up high enough to pin the rewards to the minimum, but it did. We stuck to minimum since early on.

So, now it's even more complex. With 10% of the rewards going to budget items, and any unused funds never being created, PLUS the 5 dash it costs to make a budget proposal being destroyed, it cuts the circulation down even more.

So I don't even know if the coinmarketcap.com has an accurate measure of coins (does it included removal of "burned coins" from the total?) And a long time ago when I was guesstimating how many coins we'd end up with, I came up with something closer to 14.5-15 million coins. But these guys are smarter than I am, so I'm sure they're more accurate :) Then again, we average only 550 blocks a day calculated, instead of 576, which is what we would have if we actually had a block every 2.5 minutes, But since the reward reduction happens every X blocks (576 x 365 = X) That probably doesn't matter in calculating "final number of coins" But keep in mind that this is going to go on basically forever, with rewards halving forever.

Anyway, I hope the history clears things up. Even so there is this algo that increases rewards if the hash rate drops, it's unlikely to ever drop low enough to increase the rewards ever again. I think my baikal miner might be enough to keep that from happening today, LOL. So you can safely ignore it.
 
You must log in or register to reply here.
Back
Top