I'm a little confused, is blackcoin still 1% interest per year or is it 1.5 coins per stake?
At a block target of 64 seconds, with 86,400 seconds in a day; we can expect an average of 1,350 blocks per day, generating approximately 2,025 new coins per day. At 365 days a year this yields a stable 739,125 coins generated per year, approximately 0.9855% of the initial distribution.
I understand this is approximately 1%, but as blackcoin grows in age, this annual inflation will continue to shrink percentage wise. I have also read the white paper on POS 2.0 and understand the cause of the change to POS, but I don't understand why this reward is not dynamic.
Are there any plans on correcting the POS block reward to yield a true 1% per year? Perhaps since there are approximately 492,750 blocks per year, the POS block reward should be 1/49,275,000 the total coins in circulation; which is a statistic that is already available to every wallet and node. This seems like it would be a quick fix and then we could secure the integrity of truly supporting a 1% inflation per year. (Note: a more precise method would be to also take into account the compounding of each block to calculate a true 1% growth per year, which would result in a reward a block reward little lower than 1/49,275,000 of the total coins per block).
BLK has static 1.5 BLK reward nowadays. As it was possible to switch to this system on the run, it's not going to be problem to adjust reward size later, if seen wise.
Dynamic POS reward system has a flaw, you can stake once a year and you still don't lose any stakes. You build up massive weight during that year and it's more probable to stake as you should have huge wallet weight compared to others. If everyone would stake once a year our network wouldn't be that safe.
I'm not completely sure about this, but I assume that, if it would be dynamic, there would be need for new parameter counting block online time. Otherwise it would count coinage and same once a year stakers get same rewards without helping network at all. And counting block online time might not be wisest option.
The more a coin switches its protocol, the less (long term) trust the community tends to have. I understand the flaw in 'POS protocol' and the urgency to change the POS block rewards to reward holders who run their wallets more frequently; and therefore securing the network. However, (with my limited knowledge of code) looking at the source code, it does not appear that this reward is dynamic, but rather fixed at 1.5 BLK per block.
With the current circulation of 75,063,099 BLK at the time of writing this post, and using the approximate 739,125 generated per year in the above post, we can see the following:
November 2, 2016 - Expected Yearly POS Reward: 739,125 BLK, Total BLK: 75,802,224, Yearly Inflation:0.97%
November 2, 2017 - Expected Yearly POS Reward: 739,125 BLK, Total BLK: 76,541,349, Yearly Inflation:0.96%
November 2, 2018 - Expected Yearly POS Reward: 739,125 BLK, Total BLK: 77,280,474, Yearly Inflation:0.95%
November 2, 2019 - Expected Yearly POS Reward: 739,125 BLK, Total BLK: 78,019,599, Yearly Inflation:0.94%
November 2, 2020 - Expected Yearly POS Reward: 739,125 BLK, Total BLK: 78,758,724, Yearly Inflation:0.93%
November 2, 2030 - Expected Yearly POS Reward: 739,125 BLK, Total BLK: 86,149,974, Yearly Inflation:0.85%
November 2, 2040 - Expected Yearly POS Reward: 739,125 BLK, Total BLK: 93,541,224, Yearly Inflation:0.79%
November 2, 2050 - Expected Yearly POS Reward: 739,125 BLK, Total BLK: 100,932,474, Yearly Inflation:0.73%
November 2, 2100 - Expected Yearly POS Reward: 739,125 BLK, Total BLK: 137,888,724, Yearly Inflation:0.53%
November 2, 2200 - Expected Yearly POS Reward: 739,125 BLK, Total BLK: 211,801,224, Yearly Inflation:0.34%
November 2, 2300 - Expected Yearly POS Reward: 739,125 BLK, Total BLK: 285,713,724, Yearly Inflation:0.25%As we can see, the yearly growth from POS by 2020 is already approximately 0.93% and it continues to compound (ie as t -> ∞, POS -> 0%). Blackcoin has something other 'copy coins' don't; its the
original pure POS cryptocoin. I find this current protocol an unacceptable deviation from the original source code.
Again, I am not a professional programmer, but I don't see the need for a 'new parameter counting block time.' Since the blocks already have a target of 64 seconds per block, the diffcultly readjusts according; therefore, the dynamic reward could possibly be calculated from the total number of coins.
is Blackcoin dead?