Submitted by JorgeLuisSalcedo on Wed, 26/02/2014 - 16:35
Although mining is necessary for security, it consumes real world resources and it is not necessary to issue 100% of the total initial monetary base through mining in order to secure the network. The Freicoin Foundation will issue 80% of the initial monetary base to prevent this wasteful issuance (that maximizes the costs of production to minimize seigniorage) and to experiment with new issuance mechanisms.
The goal is to distribute the 80 million FRC before 2016. After this 3 year period the monetary base will remain stable at 100 million FRC and the 5% demurrage will be distributed p2p.