Sorry, I am misunderstanding you or you me.
1% for inflation + 1.005% to pay the stakers for securing the network = 2.005% inflation per year. You are relying on >2.005% being lost every year for BC to be deflationary.
When you make a transfer of BC, you pay a fee? If so, where do the fees go? Some coins destroy them, some use to reward stakers. I'm not sure what BC does atm.
1% for inflation + 1.005% to pay the stakers for securing the network = 2.005% inflation per year. You are relying on >2.005% being lost every year for BC to be deflationary.
When you make a transfer of BC, you pay a fee? If so, where do the fees go? Some coins destroy them, some use to reward stakers. I'm not sure what BC does atm.
It's not 1% inflation + 1.005% to pay the stakers. They are not separate entities, but are one and the same. The 1% inflation is derived from the 1% interest earned as and when wallets are opened.
As for 'where do the transfer fees go', good question, I forgot to look into that ...
I think I have it. On the last page you said:
"No, you will earn your 1% regardless of whether or not you have your wallet open for the full year. You will receive the interest once you re-open your wallet.
The advantage of having your wallet open all the time is that you help secure the network, and also earn compound interest on your 1%."
So you are saying you get 1% if you open your wallet just once per year but if you leave it open, you get compound interest on the same 1% (which we calcualted above as being 1.005%).
So the incentive stake 24/7 for a year is a bonus of 0.005%? You would get the 1% if you did nothing, right?
Can anybody clearify this?
I think the 1% Inflation of 74m is reached if everybody would have wallets opened all Time. So 100% of the coins are staking.
If u dont let wallet Open You get 0% because how could u get a block if there is no wallet pos Mining??
So you have to Open the wallet to Secure the Networ. Therefore u get fees plus stake on hitting a block.,
This should be cleared up asap, it is the basis of rewarding people and not enough people understand it.
I think you are probably right, it wouldn't be proof of stake if you weren't rewarded for 'proving your stake'. So 0% for keeping you wallet closed seems logical. Otherwise, 0.005% is no incentive to stake your wallet and the network will die quickly as soon as people realised this. A terrible set up, I doubt BC would ahve got this far with that model.
So you think you get the 1% for running your client 24/7/365 (compounding up to 1.005% over the year) and the fees in a block? Do you have any links for the second part?
No, your interest is compounded because you keep your wallet open permanently. You gain 1% regardless.
The transaction fees, I would expect, are also paid to those who are staking ( there are no miners ), so this, plus the compounding of interest, is your incentive. Haven't found proof of this yet, but am in the middle of work, haven't looked far ;]
From the articles posted, the compounding period is 8 hours. There are 1095 eight hour periods in a year (365 * (24/8)).
Each 8 hour period you get, 0.1 / 1095 = 0.000009132% on your stake
Compounding 0.000009132% up over 1095 periods = (1.000009132^1095) - 1 = 1.005% compounded for the year.
