Hi everyone,
Since PoS is a topic of interest around here, I want to let you all know that the SolarCoin Foundation Board has been having some in-depth conversations about ideas for possible PoS implementation or other ways to reduce the inflation rate. At this point, we're still just discussing various options and nothing has been decided yet. We're serious about improving the technical and economics aspects of this currency.
In that vein, I'd like to hear some thoughts from the community about a few ideas. If you had to pick between the following choices, which would you prefer?
A. Switch to PoS with a high staking interest rate (10%+ per year)
B. Switch to PoS with a lower staking interest rate (somewhere from 1% to 10% per year)
C. Continue PoW but reduce mining reward so that fewer new coins would be created.
If you can explain the reasons for your answer, that would be even more helpful. Thanks!
This is not an official survey, just one Board member who is curious to hear people's opinions.
I can see PoS implemented in the future. An actuarial study should be performed to find the proper interest rate this coin should have, and whether it should be fixed, variable, what rate it should fluctuate etc. It will increase the incentive to producers to file a claim. If PoS is implemented however the mining reward will have to be reduced as a ratio of interest earnings otherwise the coin might inflate and could potentially ruin the incentive it's attempting to promote.
So yes on PoS and reduce PoW in a way that's proportional to the plan of the incentive. Making a mid course correction now can have great benefit to the entire program. It needs to be flexible but also not bend to every whim of the community.
That's essentially the proposal I worked on all weekend and put forward to the Board!
(What Charles is describing)
Sounds like there's certainly some similarities.
Epiphany's proposal has a gradually declining interest rate over the years, taking into consideration the gradually increasing rate of generator claims. But just to clarify,
corather, it sounded to me like you're suggesting the possibility of something even more complex: a fluctuating variable interest rate which could take into account other factors as well. Are you suggesting that the interest rate could fluctuate continuously based on the short-term rate changes of SolarCoin claims -- i.e. when claims are high, staking interest would be low, and vice versa, so that the fluctuation of the overall inflation rate would be dampened rather than swinging with the swings in generator claims? Or are you suggesting some other reasoning for the variability of staking interest rate?
That's a good question and after much thought I realize I'm not qualified to answer it. I think however most currency has it's interest rate tied to the amount of outstanding debt and the faith in the ability to repay it. If there was a proper variable interest rate in the staking algo, it would have to take into account outstanding buy/sell orders on every exchange where it's traded. If the ratio on buys is high vs. sells then your interest rate would be nice and low, if the sells outweigh the buys the interest rate would climb to discourage mass dumping and stabilize the currency. I think there could be something added to the algo for claims also. I'm sure that could fit into the equation somewhere.
Just my two cents.
Ok I'm not the best with this whole coding thing but our you guys suggesting some how "hard code" in the use of API data from random websites? Like I just said I'm not the best, but this sounds very dangerous, and like a head ache. Maybe an experienced coder out there could explain how this would be safe and could possibly work?
Anyway Guys this was numbers me and my group worked on back when PoS was first talk about on the forum. I updated the numbers for current use, But If you want to go PoS I would work fast.
This year SLR PoW has 31,514,200 coins left to reward
For a total this year of 52,550,300 coins by block 525600 (365*1440)
Then every 525600 blocks it will cut in halve, next year will be 26,280,000 coin rewarded, or a total of 78,830,300 over the 2 years. So that only leaves 26,169,700 coins of the total 105 million to give for rewards.
SLR has a little different set up then most coins, so a simple % APR may not work. There are a few reasons for this, one there is no way to work in to the code how many Granted coins will be given. The block explorer API is one thing for using it on websites, but writing code to do math of how many coins leave the cold wallets just won't work.
So you would be left with using the total coins that exists, even though as long as you keep the premind offline in cold wallets they will not PoS. They still must be counted in the APR % because if you only use the coins mined then anyone getting a SLR from a grant would PoS and mess up the APR.
I don't think APR % will work for SLR also the longer you wait to go PoS the less coins are left from the 105 million. I mean if you wait until the end of this first year to go PoS, with mining and grants there could be 53 million coins out there. Then if you do the 10% just of that number it 5.3 million needed for PoS. Then it leaves no room for new grant holders to get PoS, and you will run out of coins in 3-4 years.
You guys would be way better off just setting an amount of coins per year to give as PoS. Then keep the premined offline, and set your min/max coin age. Also I would suggest you go PoS ONLY and faster the better (less coins taken from PoS reward). There are many reasons behind ending the mining period, mining shrinks PoS rewards, No more diff retarget talk, No more x11 or other algo talk.... Look mining SLR was fun, It's been a mess lately and seems to be only there to get the coin rolling. With PoS there is no need to mined anymore, you could all then just focus on Grants and investors.
When I see 10% and think to be far you would need to set that with total coins, because there is no way to know if 10 million in SLR will be handed out over that year in grants. But if it was you would need to have the room there to adjust for that, and there is no way to guess at that number.
So if you end mining soon enough (at 30 million mined) you could still have 75 million coins out of the 105 million coins. If you give out 5 million coins every year in PoS it would last 15 years.
this year
30 million mined + grant / 5 million = 16.7%
next year say the grants pick up to 1 million
30 million+ PoS+grants = 36 million/5 million= 13.8%
the next year grants pick up to say 2 million
36+PoS+grants = 43 million/5 million = 11.6%
I'm just saying it may just be easier for you guys to control the amount of coins given out over the year and let the % be controlled by how many coins are out there.
You all must decide on the coin age min and max, coin min age range from 8 hours to 20 days out there. It just means how long the coins must stay in the wallet untouched before they can PoS. Then the time gets reset after the PoS, so if you set it to 8 hours then every 8 hours the coins can PoS.
However this number is simply divided evenly based on the amount of coins set to PoS. So if you set a coin age min to 10 days, that means if every coin sat there for the whole year there would be 36 PoS times for the year divided by 5 million. So lower min coin age means lower payouts more frequent, and higher age means higher payouts less frequent.
The last thing I will say about just doing away with mining all together is you may get away from this whole premind thing as well. I'm not sure coinmarketcap could call SLR premind and non-minable at the same time. PoS only coins get a different marking all together.
Just my 2 cents take it or leave it, not you Epiphany I heard how you feel loud and clear didn't mean to quote you. Aside from this I will leave you how you wish to be, and out of my post
