The issue I have, related to numbers/value... is...
You keep displaying a "similar system", saying there are changes to THAT system, but you keep showing us the "similar system" information.
There is no charts, or even block-info segregation, indicating the POS blocks, which should be listed separate from the POW blocks. Additionally, the "total coins", is a total of minted and POS-rewards and destroyed coins, with no separation, or possibility to even estimate. (Even if we knew most of the above information.)
The "transaction fees", which are not a requirement... are being said to "balance" the POS rewards... Which is just untrue. There is no code, or data to back-up that statement. The only statement which was made clear, was that POS reward is not actually rewarding, as it was not intended to be a form of "income" or "actual gain".
However... if the only POS reward that was generated, came from a "fixed transfer fee", that WOULD be a "balance". EG, 1000 coins destroyed = 1000 coins rewarded to POS
Since POS is essentially useless as income, there is no incentive to "save coins for POS". Thus, useless bloat to the system at the moment. No security is offered by making these coins unavailable to everyone, including an attacker, who has no interest in them in the first place. They only care about the "rewarding blocks"... For it to be security, POW should be nearly zero, and POS should be high.
Since fees simply get destroyed, there is no reason in hell that anyone would/should ever pay fees. That offers no security, or incentive to pay. Normally incentive is to get a faster transaction. However, if the pools, or solo-miners do NOT get that reward, why would that transaction ever be faster? We are not earning anything by doing that transaction over any other transaction, which still ends-up being processed anyways... Thus, fees are actually just more bloat, since they don't do anything.
That could easily be changed, even now... (at a system-level), since all that information is historically still recorded in the chain. But, moving forward like it is... the result will still be the same. The more transactions, the more coins that "disappear", from the "total" and the less that are "staked". The less transactions, the more coins that are "staked", and the more the total will increase. Without any actual consideration for balance, other than "hope".
P.S. For those who wish to not participate in the destruction of coins, via fees that have no impact on rewards to those processing your transactions... Use the commands below to start your wallets...
-mintxrelayfee=0.00000000
-mintxfee=0.00000000
or 0.00000001 if the program gives you issues with "free transactions"
I get your points. Let me try to explain more.
The reason the fees are in place is to prevent transaction spam attacks. Of which Litecoin was a victim too. If there was no tx fee a malicious individual could send countless thousands of small transactions in a short period of time and bring transactions to a crawl. They could make it so there is essentially a waiting list for transactions to get into a block. Therefore a tx fee is needed to make this sort of attack costly
Tx fee destruction is not meant to equal or negate inflation caused by PoS
Inflation by PoS is one of the biggest concerns investors have. TX fee destruction is only meant to slightly decrease total inflation on a yearly basis. Caps is by no means the first to do so. The system works quite well for PPC, NVC, BTB, BTG, YAC, YAB, CGB, and all other hybrid PoW/PoS currencys
It is trully a fine balance between too little reward and too much.
Too high of a reward will lead to rampant hoarding and larger inflation caused by PoS
Too low of a reward and no miners will have any incentive to offer up their coins. The reason for the PoS reward is to give users that would already be holding coins incentive to open up their wallet and use the currency as a network defense. They will be slightly rewarded for this but not too much where to where they will never spend the coins.
I see nothing in the code that would prevent PoS minting while also PoW mining but i am not 100% posotive on this. Will look over it once again
Also the graphs I pointed out earlier Do show a separation between Pos generation and Pow generation
Currently due to the algorithm which determined reward the total amount of coins generated from PoS minting is 5.8 caps Barley visible on the graph. This counteracts 5800 transactions with fee destruction. More and more stake blocks are being generated each day. Currently the ROI is 2% With the move to 5% many more people will open their wallets and starting minting blocks.
I hope this clears some things up let me know if you have any more concerns
