Satoshi Nakamoto Archive

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Re: Bitcoin P2P e-cash paper

James A. Donald wrote:
> Furthermore, it cannot be made to work, as in the
> proposed system the work of tracking who owns what coins
> is paid for by seigniorage, which requires inflation.

If you're having trouble with the inflation issue, it's easy to tweak it for
transaction fees instead. It's as simple as this: let the output value from
any transaction be 1 cent less than the input value. Either the client
software automatically writes transactions for 1 cent more than the intended
payment value, or it could come out of the payee's side. The incentive value
when a node finds a proof-of-work for a block could be the total of the fees in
the block.

Satoshi Nakamoto

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