I was just reading about netcoin and saw the "PIR" feature, where your staking reward percentage increases the more of the coin you're staking.
Doesn't that encourage massive centralisation of the staking? Any two users A and B will do better pooling their coins into a single wallet than by staking separately. This seems like exactly the wrong incentive unless you're looking for a totally decentralised coin.
Hey Dooglus,
Not necessarily. Certainly, individuals can pool coins into a single address to try and maximize their PIR. That said, the reward threshold Caps at 10million coins (meaning, you can have 10 million or 30 million in that address...it won't matter, you'll still only earn the max % which is currently 100% APR).
In august though, the % return per "level" of coins staking drops across the board.
And, I guess it also depends on what you mean by decentralized....Individuals are still free to use/stake/share their coins as they want. Many NET holders don't trust their coins with others, so they stake on their own (and the rewards are still very good). Some put their coins (and others) into places that do pool staking coins.
So, while it might (to some) lend towards pooling coins to earn the max return, again, there is a limit to where that even makes sense to do so.
Are you currently staking any NET btw?
