Topic: Need Help Understanding Proof of Stake Block Rewards! (Read 349 times)

Here is how to calculate interest on ZEIT  at 15% interest rate per year

https://bitcointalk.org/index.php?topic=487814.msg14873082;topicseen#msg14873082


 

Yeah I get the difficulty however in Bitcoin no matter the difficulty the block reward is fixed. So if I managed to mine a block. Hooray, 25 BTC. For PoS, say I have 10,000 coins staking and when I mint a block after 4days I gey, oh 14.7coins. I'm scratching my head doing the math on how on earth did they decide to reward me 14.7

There's a difficulty too in these blocks. So if you're stack is too small, you're likely to have nothing. Also, you need to split your coins the right way, but don't ask me how to, I don't like PoS coins.

Hoping i will be able to get a reply about something that has been bothering me the longest regarding Proof of Stake and unable to find an answer despite my attempts on many forums. My question is regarding the block rewards. Maybe i understand it wrongly but if i were to relate it to Bitcoin where in every block there is a reward (50) now 25.

How does the proof of stake block reward then? Seeing some alt coins these days giving very generous interest, some 1% a day! However in my experience downloading and staking these coins, the reward is never consistently what it claims. Take for example a 1% interest a day coin. The rewards come a few days once and it does not equate to 1% daily. I understand this involves coin age. so let me give an example.

I have 1000 coins that have been staking for 3 days. On the fourth woo hoo, i finally get to mint a PoS block. How does this block suddenly have say 3.7 coins to give me compared to say another who mint a PoS block and was awarded 109 coins because he has a larger stake.

OK, i know many POS coins have different formulas.

Some POS coins base the code on whoever made a transaction within the block to become part of the block securing mechanism and their involvement is rewarded. Some POS coins base the code on randomly selecting nodes that are available on the network.

End of day, How does the block KNOW how to give this figures? It cannot be random and how is the block designed to say generate coins out of the blue according to stake? In other words, there must be a method to this fixed randomness?

I feel compelled to know this because in many PoS coins now, they say ok, u will get x amount interest anually give and take. So how do they determine this? From what i see it's not an everday thing and proof of stake exist to secure the network, not give interest. Just that it incentive's people to do so with the reward.