Demurrage currency code

gistfile1.txt

Currently, we're using this currency code format (from ripple.com/wiki/Currency_format):

00 00 00 00 00 00 00 00 00 00 00 00 __ __ __ __ __ __ __ __

ZERO------------------------------- CURCODE- VER-- RESERVED

Let's define the first byte as the type byte.

Type 0x00 means the normal format:

00 00 00 00 00 00 00 00 00 00 00 00 __ __ __ __ __ __ __ __

   ZERO---------------------------- CURCODE- VER-- RESERVED

Types 0x80 - 0xFF are reserved for hashes - i.e. if the first bit is one, the remaining 159 bits are a hash.

Type 0x01 means demurraging currency:

01 __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __

   CURCODE- DATE------- RATE------------------- RESERVED---

CURCODE - Three character uppercase ASCII
DATE - DEPRECATED Demurrage start date (Ripple epoch; seconds since 2000)
           `-> There is no reason to choose one reference date over another so this feature will be removed.
               For now just make sure you ALWAYS set the date to 00 00 00 00
RATE - Demurrage rate, defined as e-folding time in seconds (IEEE 754 double-precision floating-point)
RESERVED - Reserved for future use, duh

Note: Date and rate are four-byte aligned, rate is eight-byte aligned, for easy parsing on 32/64 bit CPUs.

Demurrage example:

01 58 41 55 00 00 00 00 C1 F7 6F F6 EC B0 BA C6 00 00 00 00


// Calculating the demurrage rate
//
// We want 0.5% per year. There are 31536000 in a year, so the e-folding time in seconds is:

31536000 / ln(0.995) = -6291418827.045599

// In plain English: The nominal amount of this asset will decrease (hence the minus sign) e times (≈2.71828) every 6291418827.045599 seconds

// As hex (IEEE double):
http://gregstoll.dyndns.org/~gregstoll/floattohex/

0xc1f76ff6ecb0bac6

// Final currency code
0158415500000000C1F76FF6ECB0BAC600000000

// Example TrustSet
{"Flags":131072,"TransactionType":"TrustSet","Account":"rNb721TdNHN37yoURrMYDiQFmvXmENCZW6","LimitAmount":{"value":"1000","currency":"0158415500000000C1F76FF6ECB0BAC600000000","issuer":"rUyPiNcSFFj6uMR2gEaD8jUerQ59G1qvwN"}}

Great idea, the e-folding time for an annual rate of 0.5% is -6291418827.05, so if we plug that in:

e ^ (31536000 / -6291418827.05) = 0.995

Much better precision compared the previous approach (per-second interest/demurrage):

0.99999999984 ^ 31536000 = 0.99496694802

I'll update the doc.

static public BigDecimal applyRate(BigDecimal amount, BigDecimal rate, TimeUnit time, long units) {
    BigDecimal appliedRate = getSeconds(time, units).divide(rate, MathContext.DECIMAL64);
    BigDecimal factor = BigDecimal.valueOf(Math.pow(Math.E, appliedRate.doubleValue()));
    return amount.multiply(factor, MathContext.DECIMAL64);
}

Overuse of BigDecimal aside, is that how you can apply a rate, to calculate the reduction?

eg. https://gist.github.com/sublimator/0e97703c8d8ae78d6079

You can do

BigDecimal factor = BigDecimal.valueOf(Math.exp(appliedRate.doubleValue()));

to save a little computing time.

Cheers :)