How does POS and "stake" work in exchanges?

almightyruler

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Quote from: Crestington on April 15, 2014, 07:40:06 PM

Typically larger exchanges such as Cryptsy turn off staking because minting on that many transactions uses a massive amount of memory and have been known to crash wallet servers [...]

This. You see it at a smaller level when solo mining and your client stops responding to requests from the miner ("Pool 0 not providing work fast enough") because it's so busy trying to mint a Proof of Stake block.

HarryPotterCoin

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Quote from: cryptowho on April 16, 2014, 02:13:31 AM

Help me understand.

So a big exchange has POS coins on a cold storage ? what are people trading on

I heard that POS could cause problems to pool as well to exchange.

cryptowho

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Help me understand.

So a big exchange has POS coins on a cold storage ? what are people trading on

Crestington

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Quote from: unibean on April 15, 2014, 08:16:27 PM

Quote from: Crestington on April 15, 2014, 07:40:06 PM

Exchanges have wallet servers in which all coins are pooled into one wallet and their accounting software takes care of who owns what but it would be more trouble than it's worth trying to pinpoint exactly who's coins staked and designing the software for it. Typically larger exchanges such as Cryptsy turn off staking because minting on that many transactions uses a massive amount of memory and have been known to crash wallet servers but smaller exchanges would probably Stake in which case they would keep the POS returns.

In short, if you keep your POS coins on exchanges you don't get any staking returns.

then what about a PoS coin that you bought on an exchange! i think that you will have to transfer it to your personal wallet for minting?

Yes, you would have to transfer it to your personal wallet to Stake (or Mint, same thing).

unibean

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Quote from: Crestington on April 15, 2014, 07:40:06 PM

Exchanges have wallet servers in which all coins are pooled into one wallet and their accounting software takes care of who owns what but it would be more trouble than it's worth trying to pinpoint exactly who's coins staked and designing the software for it. Typically larger exchanges such as Cryptsy turn off staking because minting on that many transactions uses a massive amount of memory and have been known to crash wallet servers but smaller exchanges would probably Stake in which case they would keep the POS returns.

In short, if you keep your POS coins on exchanges you don't get any staking returns.

then what about a PoS coin that you bought on an exchange! i think that you will have to transfer it to your personal wallet for minting?

cryptowho

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thanks for the reply ^ how would cryptsy prevent staking?

Crestington

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Exchanges have wallet servers in which all coins are pooled into one wallet and their accounting software takes care of who owns what but it would be more trouble than it's worth trying to pinpoint exactly who's coins staked and designing the software for it. Typically larger exchanges such as Cryptsy turn off staking because minting on that many transactions uses a massive amount of memory and have been known to crash wallet servers but smaller exchanges would probably Stake in which case they would keep the POS returns.

In short, if you keep your POS coins on exchanges you don't get any staking returns.

cryptowho

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yes. i am really interested how in the exchange influences.

What options can one have? Maybe if people cared about their coin future they should withdraw and re-deposit every day. take the loss in fee but save the exchanges from reaping all the stake?

KingSchultz

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Quote from: cryptowho on April 15, 2014, 06:26:44 PM

hmm. Would be nice to know. Could exchanges stake and dump those coins along? If they hold one billion POS coins , one stake would be a nice slice no?

I think it's an interesting angle. Especially for some of the coins we've seen with ridiculously high stakes like 20-50%.

tk808

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The exchange typically holds onto the stake, some exchanges release them to the users.

cryptowho

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hmm. Would be nice to know. Could exchanges stake and dump those coins along? If they hold one billion POS coins , one stake would be a nice slice no?

KingSchultz

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As far as I know, some exchanges stake the coins and some don't. There's no technical reason why they can't stake the coins they hold, although it may be more secure not to so they can use cold wallets.

cryptowho

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I guess i want to know how the stake works on POS coins. When you send POS coins over and let them sit there, does the exchange collects the "staked" coin?

Topic: How does POS and "stake" work in exchanges? (Read 781 times)