Can we incentivize limiting the BCH supply and reduce volatility? Could the network raise 100 BCH to have 1,000,000 BCH sent to a Coin Freeze for 4 years?
Bitcoin Cash can be sent to special addresses called a "Coin Freeze" address (see Bitcoin Unlimited BCH wallet under Receive tab). screen shot
Coins in this address cannot be spent until the specified block number or future date is reached.
What if people crowd fund for whales to freeze supply?
For example could the community raise 100 BCH to have 1,000,000 BCH sent to a Coin Freeze address for 4 years? Would anyone freeze their coins for this price? Is there a right price? Is anyone that bullish and wants to settle in the blockchain?
The coin freeze feature facilitates a market mechanism system that operates independantly inside the blockchain. Freezing could be a way of going extra long (hodl2 ) on the BCH market if you are very bullish. Paying to freeze is a way to reduce market price volatility. Crowd funding makes it feasible.
Imagine if a Coin Freeze market existed. I figure there is a price point that it is worth it to crowd fund and freeze coins. It would be a useful tool for BCH users to have. When prices are low the incentive is higher to attract offers. Conversely when the price is too high users with frozen coins will stop accepting payments to renew their freeze. This means they can sell their coins. So perhaps during pump phases the price would not go so high.
All the data for freezing is verified and transparent to the public as it is witnessed in the blockchain. Everybody knows the freeze schedule. A schedule chart for the supply could factor in mining rewards, known blackhole coins and coin freeze schedule.
Would the free market regulate supply in a way that reduced the volatility of the market price cycles? Is that even a good idea to try?
Either way with todays coin freeze features its possible.
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source https://www.reddit.com/r/btc/comments/acsv97/can_we_incentivize_limiting_the_bch_supply_and/
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