my thoughts on some of these convos:
One of the reason Bitcoin is supreme is because the POW. Not only is POW a strong future for bitcoin but it open doors to all the other cryptocoins. Lite coin was formed because miners were being cheated out by botnet and investors who could afford bigger asic. After litecoin, the other coins came because Litecoin difficulty skyrocket.
The reason why mining is important is because all you have to do is buy a mining rig and mine coins. This is the safest way for people. Not everyone will send documents and wait a month for exchanges to prove them into their systems. Not a lot of people even know where to go to buy coins. But Mining POW there are 1000 tutorials and withing few days you are mining away. with in two days you are making some tiny bitcoins/litecoin. Then through mining, they learn the trading game and then become buyers.
One of the strongest case is that there will always be tons of people trying to mine bitcoin for years, hence there will always be demand. POW algo beat the other algo coin in 2011 and become the bitcoin that it is today. Only because people were able to mine it. Even now people invest thousands of money into mining material.
So think hard before you slam POW.
And now to POS.
At first i was rooting for POS. But that was when we were thinking about cutting down the total cap size of 92 billion coins. After some back and forth conversation between members and team members (specially KOS) my opinion was changed and i know i understand that staying loyal to the old code is the key. Because not only is POW the answer to our success, but also the ability where people can come in now and mine some decent chunks of coins. And it will stay this way. Other coins that shared our total cap levels in billions , fear this feature and have moved to cut it down so they can stop the bleeding. they might have seen a small bump in price but eventually they will fall. Opposite to them is our coins. Our coin had/has difficulty now but then it will be the opposite and it will rise. Because, not only can people jump into our ship easily via mining(POW), but our block rewards will be good enough that all of them will get a nice payday. How finds it appealing to mien all day for 0.01 of that coin. The answer to staying alive long enough for us to BUILD PART D is in the miners. It is in the ability for anyone to jump right into our coin. no security checks, no shipping out ids, no worry about shady btc trader in the real world. Simple point your miners and you are in. We can see that all the coins that are already mined out , slowly but surely are crashing down. The moment they loose the miners they also loose the buyers. as most of the buyers are miners themselves.
So POS? First things first. We would be POW and POS. Not only POS. therefore we would have to have double buy support for the all the new coins mined and new coins staked. moving on, Since we have agreed that 92 billion coins is the answer,
What percentage can POS be?
If we give POS at %10-30 our coin will be dead. We have too many coins and such a high % will just be too hard to raise in price since it will be a constant POW and POS new coins released. We would have to have double of POW buying volume. Ideally this would be good with the previous point that people will have it much easier to get the coins since it will be so many of them and the prices would be low enough that anyone can owns some with some small $$ buy. But it would take 20-30 years before we reach this buying support . but we most likely will be dead as a coin and never reach optimum level.
More a reasonable POS percentage would be %2-3 yearly. This is low enough that the new stake coins will not create alot of sell stress and it would be easy supported by by volume. But then we need to step outside the box and look at the box and try to imagine how it will behave. Let say 1 year from now you were a good karmanian and held to your coins and are a bag holder of 200mill coins. at %2 , in the end of next year you will receive a sum total of 4 million more coins. This would be awesome for you. because hopefully by them karma has some sweet price of 3000 satoshis [
] and you just made an extra 120 btc. great! but what if we are an average holder of 1,200,000 Karma. by the end of the year you stake 24,000 extra coins. Now imagine holders on the lower class then average holders.
When these class of average or lower coin holders stake , it will not be a huge chump and depending on the stake maturity settings the POS code will have, it would come in small , very non impressive , tiny fraction of coins a day/week. That will look demoralizing and it will not encourage any one of the average class or lower to open their wallets to stake are they should. This could create a very serious network instability and could cause %51 attack on POS network. Because only the big bag holder will be inclined to make sure their wallet is opened every day to stake. Since POS purpose is to have wallets to stay open so the network can stay stronger , this future paths would created a lot of forks and possible multiple double spending. Not to scare you will %51 attacks or double spending. even if this never happens, what probably might happen is that all the average and lower class will start selling their coins and moving on to a coin that will give them a better distribution.
trust me. i am staking a few coins and there is nothing exciting than to see a + 0.03 coin staked after waiting coins maturity. not to mention all this low stakes will bloat the block chain.
My point about POS?
Well, i want to put some people at rest that adding such feature will only create a small hype but it will not be the "feature" that will get this coin to 100 satoshis. most of the hype will ride for about 7 days and then it will come back down to the current floor + 1-2 numbers higher. I want to also remind you again that adding POS will not be removing POW and POW will still be the strongest feature of our coin. Therefore, is POS an additional feature that we need right now? Why? How do you think it will help the coin become stronger. Do you agree that adding POS we would have one more "algo" to worry about its network security. Do you understand that even if we have a stable POS we would still have to worry about POW security from ASICs. Is %2-3 POS stake a year really worth adding one more network that we have to worry about %51 or double spending?
I feel like people are asking for us to go POS , not because they have really thought it out and have come to conclusion that it will bring new security to our coin , but because they have seen from other coins that adding POS has increased the coins price.
As i said before. if we were to cut the coins total POW at 50 billion and then do the other 32 billion in POS only , i would have voted for POS. and DID! however, since we keeping POW continuously for year to work until we reach our cap, then POS will have to be very, very low in percentage, making it kinda pointless to add compared with all the new risk and effort to main it.
well , my 0.2 karma about POW and POS!
The real solution in our coins lies in adaptation, not the code. We already have a beautiful scrypt algo code. it moves one coin from one side of the world to the other. We don't we stop looking at the code and expecting it to make us millionaires and create systems that the code can be used for.
lets re-focus the momentum back into our goals. lets continue to create that awesome and very strong network that the karma team is working hard to build. A network with many , many members who come together and help those in need. I still can't wait until we are so big in numbers that each member will only be asked to donate $0.10 to fulfill the necessary quotas. One click away. only ten cents. cryprocurrency allows us to send this amount to go fully to the address with no middle man becoming rich with fee! Lets not miss this great opportunity by focusing on how to hype and dump.
Cryptowho.
