Bitcoin P2P e-cash paper

Satoshi Nakamoto satoshi at
Sun Nov 9 21:14:30 EST 2008

James A. Donald wrote:
> Furthermore, it cannot be made to work, as in the
> proposed system the work of tracking who owns what coins
> is paid for by seigniorage, which requires inflation.

If you're having trouble with the inflation issue, it's easy to tweak it for transaction fees instead.  It's as simple as this: let the output value from any transaction be 1 cent less than the input value.  Either the client software automatically writes transactions for 1 cent more than the intended payment value, or it could come out of the payee's side.  The incentive value when a node finds a proof-of-work for a block could be the total of the fees in the block.

Satoshi Nakamoto

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