For 0.01 TX fee, the attack will be made just 1% more expensive.
So it doesn't matter.
It does matter. The 0.01 PPC tx fee will dramatically limit your attack power. You have to pay 0.01PPC tx fee for each smaller unit of PPC when you divide each PPC into smaller unit of PPC, so you can't divide one PPC into unlimited smaller unit of PPC.
That comes out as 1% overhead. 0.01/1*100 = 1%
You cant stake mine with balance under 1 coin, so that's the minimum you need to split.
You can't assume the minimum would be adequate. You may need to subdivide into millions of separate transactions to provide enough leverage for this to work. And then whether it will work depends on the specific implementation of proof of stake you're talking about.
Assume? It's the reality. In PPcoin (and in most PoS cryptos), you're not eligible for PoS mining if the coin's quantity is less than 1. They attacker may use 2 even, but there's no point in doing that.
Do you have code references to support this claim?
It is amazing how little people know about the PoS mechanics off ppcoin and descendants. It is true, that some coins are very poorly configured, but let me give you an example and ask you to re-play your attack logic there. The current version of Diamond, has minimum stake time of 7 days and maximum stake time of 30 days. It also has a combine threshold of 100. What those numbers mean is this:
1. You DMD can't stake while younger than 7 days.
2. If your DMD happen to stake between 7 and 30 days (because of sheer luck, or because of too much coin age), it will be subject to splitting. The amount plus reward will be split in two almost equal pieces.
3. If your DMD happens to stake, when it is older than 30 days - for example, you kept your wallet locked for way too long, or the amounts are too small they can't be lucky enough -- then the amount is not split. Instead, the combining routine is invoked. What it does, is find other DMD amounts older than 30 days, and combining them all untill they all are not over the combine threshold (100) in this case. Then all these amounts stake together and create one new amount or around 100 DMD + reward.
Now, say you have 10,000 amounts of 1 DMD which you let age enough and you hope could help you create such an attack. Tough luck... If they are all aged over 30 days, when they start to stake, each of the stakes will group 100 of them into one amount. You will end up with 100 stake events, instead of 10,000 as you had hoped. Caveat emptor.
Are you still convinced this "attack" could succeed?
If you want something like this to succeed, you need big piles of coins, large number of them, sitting with PoS disabled for a very long time, in order to be able to execute an attack like this. Which brings us back to the original PoS claims... more or less.
To PoS coin developers/maintainers: You guys should look at this line in your code:
int64 nCombineThreshold = GetProofOfWorkReward(GetLastBlockIndex(pindexBest, false)->nBits) / 3;
This thing is usually improper. You are confused by the "do not touch this, we invented it right" comments around it, but in fact, what it does is limit the combine threshold to 1/3 of your PoW reward. You disabled PoW, perhaps, or reduced it's reward too much? The nCombineThreshold sets the upper limit of how big a pile of coins PoS will create for older coins. You want this to work! Mostly because the endless splitting that is done by PoS otherwise will create too small coin piles to stake often. Using Coin Control for this task is pretty much pathetic -- it is already built in your PoS code, use it.
You might want to thank me, or not ;-)