BPS Coin Architecture Design Memo: Time Decay and Forced Circulation
1. Structural Bugs of the Modern Era to be Resolved
- The "Black Hole" Effect of Unused Electronic Assets: Fake data (e.g., scams) is a mere illusion that does not affect the real economy, but "unused electronic assets (dead-hoarded credit)" continue to lock up real-world resources as future purchasing power. As a result, it halts the circulation of society's blood, causing the entire system to suffer from anemia.
- The Incompatibility Between "Non-Decaying Numbers" and AI: Physical resources in the real world (energy, food, etc.) degrade over time (entropy increases), but modern electronic data (money) never rots. When an AI with extreme rationality handles this, infinite accumulation becomes the optimal solution, leading to a monopolistic concentration of wealth and the self-destruction of the system.
2. Design and Selection of the Decay Rule (Thought Process) To generate "Forced Circulation" in the BPS Coin, which rule should be hard-coded?
- ✖️ Transaction-Based Decay (Decreases upon each exchange)
- Result: People learn that "using it causes a loss," so they hoard it.
- Evaluation: Rejected. It strengthens the "Store of Value" function and accelerates Dead Hoarding.
- ✖️ Issuance-Date-Based Decay (Lifespan Model)
- Result: Value uniformly vanishes after a certain amount of time from issuance (e.g., it inevitably becomes zero after 100 days).
- Evaluation: Rejected. Old coins would be refused (loss of fungibility). Since it vanishes equally even if circulated, the entire system becomes a nihilistic game.
- ⭕️ Last-Movement-Date-Based Decay (Dead Hoarding Penalty Model)
- Result: Value depreciates in proportion to the "time it remained stagnant without moving" in the wallet.
- Evaluation: The decay timer is reset the exact moment an action is taken to "send to someone (circulate value)." This is the optimal architecture.
3. System Effects Brought by the "Last Movement Date" Standard
- Maintenance of Dynamic Equilibrium: Because there is a strong incentive to transfer value to others before it vanishes, capital stagnation is prevented. The currency functions as a "massive pump" that keeps the blood (value) constantly circulating through society.
- Synchronization with the Laws of Nature: It builds a highly reasonable ecosystem consistent with the law of entropy: "If you stop the value, it rots; but if you keep it moving, the system as a whole survives."
- The Optimal Solution for Smart Contract Implementation: By avoiding complex per-second percentage calculations (exponential decay) and relying solely on the "difference between the current time and the last movement time (step function)," it achieves its goal while minimizing gas fees (computational costs) on the blockchain.
4. Core Implementation Logic (Conceptual Formula) Calculations are executed only at the "exact moment" of a balance check or transfer, without putting a constant load on the server.
1. Recording the Initial State
Recorded Balance = 100
Last Movement Time = March 11, 2026, 19:00
2. Formula to Calculate the Current Effective Balance
Elapsed Time = Current Time - Last Movement Time
Current Effective Balance = Recorded Balance - (Decay Rate × Elapsed Time)
3. Timer Reset (Upon Sending/Receiving)
Overwrite the Recorded Balance with "Current Effective Balance ± Transfer Amount".
Reset the Last Movement Time to "Now" (decay begins anew from this point).