Fundamental Concern Decimal Places


#1

During the interview between Crypto Rich and Richard Ella, there was a brief moment where Ells does touch on what would happen if the ETN price were to raise too far, to the point where the two-decimal-place system would no longer function properly.

I understand that 1, Ells response was spur of the moment, and 2, even if there is a chance of this problem it is a long way off…
However what he did respond with brought me some concern.
I’ve been under the impression that the easiest fix for for an overpriced ETN would be to have a hard fork and increase the decimal places.
The response from Ells was more along the lines of “if the market went crazy enough to have an overpriced coin, we would have to inflate ETN.”

Higher maximum number? Eek.

Any thoughts? Thanks.


OK Electroneum ok ok ok
#2

My only question is what price would be too high? Does anyone have an actual answer?


#3

Changing decimal place defeat the foundation principle of etn. I think what he meant is to have a hard fork so you will own 2 coins instead of 1 and then deflate the value by half.


#4

Yes 10 dollars will be the maximum as you can not break down 10 cents which is probably a lot in the developing world as 0.01 will be worth 10 cents.


#5

Do you have the timestamp of when this was discussed?


#6

I like this idea. Countries with very high inflation also do this to make the currency more “spendable”…


#7

If we do attain mass adoption 21 billion coins with and 100 units per coin will be far to little to be used on daily basis if the smallest unit being .01etn = and 10 dollar ETN per coin price would mean .01etn is .10cents, which means everything would have to be rounded to the closest 10 cents which not go over well in the countries where 10 cents is still a lot of money. The adding of decimal places would create more units with out changing overall supply/price of the coin but it would require users to understand a 3 or 4 decimal place value which is not common in any fiat system in the world. The other option would be to jump the supply up to 210 billion coins and give all holders 10x the number of coins for each coin they currently held, which in tern would cause huge devaluing of each coin which could be really bad because it would seem like hyper inflation for people who used the coin daily if the value all of sudden is worth 90% less. This is where investors and users of the coin may come to a cross road, where the coin needs to have enough units to survive as a world wide currency but the only way to do it is increase supply 10x, 20x 50x or 100x. Adding a 3rd decimal place would be the root I would go, if Richard is listing please consider that root vrs adding billions more coins as I would really like to hodl this coin and put it in my will! :wink:


#8

There is no way he is seriously thinking about adding billions of new coins, simply no way!

He is not stupid, i gather that from all the times i’ve watched him speak and i refuse to believe that this is a road on which he would go down.


#9

If we have $100, $500 or $1000 price per coin I could see a supply increase as being very needed. But until that time the decimal fork would quick and easy. Now if we ever hit $1000 per coin I would probably being moving on! lol :slight_smile:


#10

Adding a decimal place is Definitely the way to go.


#11

I don’t remember him saying this in the interview, maybe I didn’t pay good enough attention.
But I think he means that if the coin value goes beyond the point where adding a decimal place can mitigate this effect, then they would have to inflate it to prevent it from becoming a 3+ decimal coin.

To be honest, if that time ever comes, I don’t think you are going to worry about more coins being added if you bought coins at $0.005.


#12

The two decimal places is something I have had concerns about also would be nice to hear more said on this but my guess it good at the rest of yours. Even if the coin didn’t come up to a crazy amount it would not be able to be rounded down very far so I have some questions regarding this also.


#13

I agree it should be like this with price bellow in dollars:

1.00 etn means 2 decimal places .01 = .01 as smallest $Dollar amount
10.00etn means 3 decimal places .001= .01 as smallest $Dollar amount
100.00etn means 4 decimal places .0001= .01 as smallest $Dollar amount
1000.00etn means 5 decimal place .00001= .01 as smallest $Dollar amount


#14

Works fine up till we hit price of $1 then we run into some issues!


#15

You are entirely speaking my mind, thank you.
My concern is the devaluation factor. One more decimal place seems like little sacrifice in place of that.


#16

I feel the same way. That’s why I’m bringing this up - because it’s not clear at the moment and I’m hoping for some form of rationale.


#17

Hitting $1 would be nice to start off with so we can have this problem! lol


#18

Lets not forget unless someone knows how easy/hard it would be, changing the decimal place might be very complicated hence why maybe he didn’t just say that.


#19

I have been in coins that have changed decimal places with a fork, so it is not difficult at all from a technical standpoint but would require some education for the users.


#20

Ah ok thats good to know, thing is I do get somewhat the decimal thing but with how smart most apps are now they show you exactly what the amount is in your local fiat usually It does go back on what they said but changing the decimal places does not seem like a big deal to me In that sense.

Maybe were all getting way ahead of ourselves who knows it could take years and years for ETN to get to a dollar it may never get there :sob: