I was thinking about the PoS rate & MN payment ratio for DNET and it's a bit more confusing that I initially thought.
With DASH, as it's PoW, the miner's "cost" is a proper tangible indicator of its "worth".
Also, as it costs money to mine, it compares well to the masternode owner's investment & time.
Hence why both miners & masternode owners get the exact same ratio of reward payment per block
However with PoS, it is not so similar.
Staking coins in a wallet costs less and requires less maintenance than erecting & maintaining a masternode.
But I do see how you do require a significant amount of coins to stake in order to really benefit & get paid similar amount as a single MN.
So... I think it needs to be calculated well as to what the rate of PoS should be in order to maintain a healthy balance of stakers & MN.
e.g. (correct me if i'm wrong)
If I had 10k of DNET and staked at rate of 20% for first year.
After 1 year, I would have 12k DNET roughly.
But if I used the same 10k DNET to setup 1 MN and if there were 1600 MN. (assuming it'll double by PoS switch date)
And assume MN payment is 10 per PoS block as it is right now per PoW block.
Then it's 1440 * 10 / 1600 * 1 * 365 = 3285 DNET. So you end up with 13285 DNET after 1 year.
Now, there are many unknown variables here. (especially the total number of MN)
So yeah, maybe there will be about 2500 MN by then which means both MN & staking will end up being similar.
But if MN count goes up even higher, then it's an issue as reward could end up being lower than staking & vice versa.
Anyways, I think both the PoS rate & MN reward needs to be "smart" & "adaptive". (was that what was proposed before?)
I hope the maths formula is worked out and published once finalized so we all know how it will calculate the rewards.
With DASH, as it's PoW, the miner's "cost" is a proper tangible indicator of its "worth".
Also, as it costs money to mine, it compares well to the masternode owner's investment & time.
Hence why both miners & masternode owners get the exact same ratio of reward payment per block
However with PoS, it is not so similar.
Staking coins in a wallet costs less and requires less maintenance than erecting & maintaining a masternode.
But I do see how you do require a significant amount of coins to stake in order to really benefit & get paid similar amount as a single MN.
So... I think it needs to be calculated well as to what the rate of PoS should be in order to maintain a healthy balance of stakers & MN.
e.g. (correct me if i'm wrong)
If I had 10k of DNET and staked at rate of 20% for first year.
After 1 year, I would have 12k DNET roughly.
But if I used the same 10k DNET to setup 1 MN and if there were 1600 MN. (assuming it'll double by PoS switch date)
And assume MN payment is 10 per PoS block as it is right now per PoW block.
Then it's 1440 * 10 / 1600 * 1 * 365 = 3285 DNET. So you end up with 13285 DNET after 1 year.
Now, there are many unknown variables here. (especially the total number of MN)
So yeah, maybe there will be about 2500 MN by then which means both MN & staking will end up being similar.
But if MN count goes up even higher, then it's an issue as reward could end up being lower than staking & vice versa.
Anyways, I think both the PoS rate & MN reward needs to be "smart" & "adaptive". (was that what was proposed before?)
I hope the maths formula is worked out and published once finalized so we all know how it will calculate the rewards.
Would be good if it worked out and was adaptive so MN always get more than POS no matter how many there are else it be pointless keeping MN going.
As soon as it was worked out how many masternodes meant that it was no longer worth making another one and it's better to stake the MN count would halt bearing in mind running costs as well. Not sure if that a bad thing or not but i would guess more MN are better? Plus coins are locked in.
