Election Fee

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warmach
Posts: 404
Joined: Thu Jun 21, 2012 5:18 pm

Election Fee

Post by warmach »

I've been away from TK for a while. I downloaded the Pi image and started a server. I enabled generation, now I am bleeding TK. 93 TK sent to a bunch of addresses. The generation page doesn't adequately explain what this election fee is. Can you please tell me why to be elected, I need to spend TK?
warmach
Posts: 404
Joined: Thu Jun 21, 2012 5:18 pm

Re: Election Fee

Post by warmach »

From what I can tell, you need to pay each existing generating peer almost 100 TK just to start earning? This sounds like it will cause a huge hurdle for people to adopt TK and run a server.

Why was this implemented? I don't understand why it wasn't even proposed or discussed in the forums. I looked through the V4.x thread but didn't see anything. If I missed it, can you please point me to it.
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twinflame
Posts: 35
Joined: Thu Jan 23, 2014 1:11 pm

Re: Election Fee

Post by twinflame »

It caught me off guard too. I think now it's a good thing. Imagine 10000s of servers flooding the market with TK. I wouldn't like seeing that happen.

Now with this system the inflationary aspect of TK will be in check as I guess the max servers generating will be between 100 and 200 servers continuously.
warmach
Posts: 404
Joined: Thu Jun 21, 2012 5:18 pm

Re: Election Fee

Post by warmach »

I am not a fan. It seems like a variation of a pyramid scheme. All the fees go to existing generators which will be early adopters. In addition, you have to buy TK before you can generate TK. That sounds like a scam. It all looks really bad to me.

I don't see a problem with thousands of servers. To me, the more the better. This would add security to the network. This security is the backbone of trust in the network. Without trust, this goes nowhere. If we were worried about inflation, then we should make a transaction fee that is burned.
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twinflame
Posts: 35
Joined: Thu Jan 23, 2014 1:11 pm

Re: Election Fee

Post by twinflame »

Not all fees go to the generators. I think renewing an easy key can go to a non generating server as well. I do agree
that with many servers on the network the security would be increased. We're now at 94 generating peers.
But you do not need to generate to be part of the Timekoin network. We could still have thousands of servers running of which
there would be between 100 and 200 generators. So the security with thousands of servers is still possible with the current setup.

Also a generating server has a max of 100.000 generations. Michael mailed me that would be about 5 years for a generating server.
After 5 years the server would have to be elected again but it can still be a part of the network without generating.
But I wouldn't mind seeing the amount of generations cut in half, 50.000 generations, which would amount to 2 1/2 years of generating.
This would make it also possible for other people to start their own generating server earlier.

What I am interested in about the election fee is this, because there does not seem to be a limit to the election fee:

Let's say we have 199 generators, 99 IP v4 and 100 IP v6. If you become the 200'th IP v4 generator, would you have
to pay 100*200 TK=20.000 TK to start generating? Is there a limit to the election fee after a certain threshold?

I'd like to read Michael's thoughts on this.
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PoisonWolf
Posts: 186
Joined: Fri Apr 12, 2013 10:39 am

Re: Election Fee

Post by PoisonWolf »

Interesting. Didn't know about this as I've not been generating for a while. I hope Knight can shed some light on his thought process in this area.
jambo58
Posts: 109
Joined: Mon Mar 18, 2013 4:53 am

Re: Election Fee

Post by jambo58 »

yep some sort of limit or scale down on the election fee calculation would be wise otherwise when we hit 1000 world servers (which is the minimum i believe for a stable reliable network world wide) the fee of 1 million TK is going to be hardly worth it, the return on investment for the server being onboarded past 1000 would take 8-9 years even with other servers paying you the fee
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