I am considering a method to derive digital scarcity from bitcoin transactions. Coins are created from transactions if their hash is among the closest n to the non zero portion of the block hash. Only a single coin can be created per transaction irrespective of the size of the transaction. Therefore n coins are created per block.

The initial coin supply and addresses can be fully determined by the existing blockchain. Additionally coins are scarce as coins can only be produced by transactions.

There are a number of variants such as creating computation puzzles from the previous block.

Has anyone seen anything similar.

PJ Fitzpatrick