when IOUs clear, in a circle, that triggers “swarm redistribution”
(the idea to do swarm redistribution on credit clearing instead of just on every IOU issued is from 2015)
(value has been added to each person in that circle, measure of growth)
each person in that circle forgives a small amount of credit to everyone who has credit lines to them, and each of those people then forgive an equal amount (symmetric) to those who have IOUs to them, and that travels like a “pulse”
if Bob was in the circle of credit being cleared, and the cleared amount was 100 RES, and the swarm redistribution percentage 1%, then Bob forgives 1 RES in total, if there are two people with IOUs to Bob, then that is 0.5 RES per person. Each of those people then continue, symmetrically, and forgive a total of 0.5 RES, divided on the people who have credit lines to them.
since it’s symmetric and person-to-person, it’s very simple, and with a person-to-person ledger like what https://holochain.org/ is describing, the “pulse” can travel infinitely far, people will stop propagating it when the return gets too small, per the laws of economics.
fake accounts affect the people that are in a trust relationship with the person with fake accounts, person-to-person, and there are countless relationships within the network, and paths for swarm redistribution “pulses”
talking a bit with Moritz Bierling and Tristan Roberts from the holochain community about it