Is the [Coin-age] = [blocksize] * [age] ? Well i don't know too much about coding, but could you add a line like: IF [PoS-block-reward] < 0.1 AND [Coin-age] < 200 THEN [PoS-block-reward]=[PoS-block-reward]*4
This might not be exactly right, but if a 100 XMG block stakes in under two days it would get a higher reward.
Increasing the block reward for small blocks will definitely encourage big holders to divide their coins into small pieces. I think that this will be a good thing for the long term. Suppose someone has 10,000 XMG and divide it into 100 XMG blocks to maximize stake earnings. They find a PoS block and get a 0.1 XMG reward, instead of the 0.025 XMG reward that they would currently get. The amount of their total coins that staked is 1%. After the PoS block matures, to go on and sell their total balance of 10,000.1 they would have to spend the weight of the 99% of their coins that have not yet staked. The extra 0.075 XMG reward from the single block is actually less of a total reward then what would be earned if all 10,000 XMG staked all at once at the lower rate. I think that smaller blocks getting a higher reward will therefore discourage dumping, because it creates an opportunity cost of lost PoS reward for selling coins with a higher coin-age.
This might not be exactly right, but if a 100 XMG block stakes in under two days it would get a higher reward.
Increasing the block reward for small blocks will definitely encourage big holders to divide their coins into small pieces. I think that this will be a good thing for the long term. Suppose someone has 10,000 XMG and divide it into 100 XMG blocks to maximize stake earnings. They find a PoS block and get a 0.1 XMG reward, instead of the 0.025 XMG reward that they would currently get. The amount of their total coins that staked is 1%. After the PoS block matures, to go on and sell their total balance of 10,000.1 they would have to spend the weight of the 99% of their coins that have not yet staked. The extra 0.075 XMG reward from the single block is actually less of a total reward then what would be earned if all 10,000 XMG staked all at once at the lower rate. I think that smaller blocks getting a higher reward will therefore discourage dumping, because it creates an opportunity cost of lost PoS reward for selling coins with a higher coin-age.
The main issue I see with this sort of change is that while it would create an incentive to split up large stacks of coins, it would also negatively impact the earnings of someone who was not technically-minded enough to try to get the most return out of the system.
In my opinion, a successful currency is a currency that works the same, no matter how much of it you have. A dollar is a dollar and a cent is a cent and, as such, the interest gained on a dollar and the interest gained on a cent are the same. If someone were to tell me that I could get a significantly higher interest rate by having less USD in my bank account, I would likely switch banks. The effort of maintaining many small accounts for increased returns might be worth my time, but it would significantly impact the ease-of-use of such a bank. Getting back to Magi, if a person new to the coin decided to invest heavily without reading up on the "interest tiers", they would probably not be too happy to discover their mistake later on.
If investing heavily and keeping coins in a neat stack or two can negatively impact the layman, I don't think a change like this is a good idea.
I understand your concerns, but does the layman user even know how to get to coin control in the wallet? As it currently stands, someone who invested heavily without knowing how to recombine their blocks is getting shortchanged because their blocks are being split after a few days of staking to a size that is below what will likely stake. There is already a size tier system, with blocks too small or too large not staking as efficiently.
I agree with you that educating users needs to be a primary concern. There would have to be a wallet update. If in the new version there was a message explaining the interest tiers in the coin control window, do you think that users would be sufficiently educated?
