Topic: Proof of Stake with an Ultra Low Interest Rate - page 3. (Read 2305 times)

Cold wallets could lease unspendable balance to an on-line wallet - this would improve security of the network without disadvantaging folk who genuinely need to keep large balances off-line for obvious reasons. You could limit the lease period to 30 or 60 days to stop the coins being left on a dvd+r and ensure the owner 'engaged with the network' periodically. You could also make the lease a 'one to one' deal - ie The hot wallet with public key A can only stake leased coins from one cold wallet with public address B.

INTEREST?  PPFFTT

ONLY CARE BOUNTY

Here's a crazy idea I had a while back:

Think of a coin with fixed supply, but inactivity is punished: Every X number of blocks, a wallet that hasn't been active in some way (i.e. mentioned on the blockchainfor in one of those blocks, either by transactions or staking) loses a small percentage of it's holdings, until a certain minimum amount of dust is reached, which vanishes after the next X blocks, leaving the wallet empty. The amount lost will be paid out to those who stake.

Of course, this would have a lot of implications, some good, some bad:

- People would stake just to keep their coins from disappearing.
- Cold wallets wouldn't really be a thing.
- You probably wouldn't need transaction fees.
- Coins won't get lost in wallets whose privkeys are unknown.
- …

Leocoin is a rich get richer coin,
LEOcoin Balance    Approximate annual percentage reward
0 - 999.9999              0%
1,000 - 4,999.9999    10%
5,000 - 49,999.9999    15%
50,000+                    20%

This discussion is about staking incentives for coins with ultra low interest rates.

 

There is great coin with solo pos 10-20%!
http://www.leocoin.org/WhatisProofofStake.aspx

https://coinmarketcap.com/currencies/leocoin/#markets

I hold 100k so i got approx 55 LEOcoin a day and keep sale! I buy them atv0.06$ and 0.10$!

The question is; is it for a store of wealth or to be used as a currency.

Actually Both.


 

A POS coin with an incredibly low rate of interest?

The question is; is it for a store of wealth or to be used as a currency.

If it is to be used as a currency then inflation in the range 1 - 5% seems appropriate.

If it is to be used as a store of wealth you can achieve low, effective stake returns and stability of supply (neither inflationary or deflationary). WAVES is one such platform - stake rewards are from transaction fees.

One thing that just came to mind , would be staking games.

On a weekly basis,
whoever stakes a Block with the highest Difficulty # get a $1 in the Ultra Low coin
whoever stakes a Block with the most transactions in one block for the week would also get $1
whoever stakes a Block with the smallest amount per block would also get $1


Would the above entice anyone to stake an Ultra Low interest coin?

 

I imagine something could be setup to flash , by monitoring the # of active connections & the Difficulty #.
But just watching the active connections and the difficulty would be an accurate indicator.

Noble uses a system where there is a decrease if people don't stake every 2 weeks or so, but their regular rate is 8% ,
Someone else did one where you actually lost coins, it was a major flop.

A Penalty for not staking, leaves a bad PR view,
A reason to stake aside from excessive coin inflation is the goal without a penalty if someone just chooses not too.

Thanks for the comments.

 

I was thinking about this before. If you had enough vested interest in the coin then would you stake or help stake just to secure it. I think people would but then they may get lazy and just rely on others for a while to take the strain. Eventually there would be an issue. Would it be possible though to put some alert in the wallet to show when too few people are starting to stake so that would again increase your incentive to stake.... like a percentage of people staking and it needs to stay in the green of perhaps 50% of wallets staking.... it starts to flash yellow or red as this number decreases below that threshold.

How about if you don't stake at least x% of the time you coins slightly decrease and go to the top stakers or get burned? could that work?

It's kind of weird psychologically. Like if i had a bank that paid me 2% and there was another bank paying me 2.5% I may well not bother to move my money. However if my bank started saying they will take .5% of my money as a fee to use it and there was another bank that was free to use I will move it straight away. I know mathematically that is not exactly the same net gain and loss but I hope you can see what I mean. People do not like their wealth taken by force.

Even then I think there would need to be very good reason to hold or buy this pos coin in the first place. Either the tech or the plans for adoption would need to be very strong.

Let say we create a Proof of Stake Coin with an Ultra Low Interest Rate

Yearly Interest Rate is only .0001% (.000001) ,

With such a low rate, many would say there is no incentive to stake.
However at such a low rate, with a little investment it's price per coin can be made very stable or pushed to new heights.

So what would make you stake such a coin?

1.  Would you accept payment in that coin on a monthly basis to maintain a node 24x7 that stakes?

2.  Would you stake just to secure the network and protect your investment while the Price per coin gets higher.
    (Blocking someone else from securing what little interest their was.)

3. Nothing at all make you stake such a coin.

Any other Ideas, what would make you stake such a coin.

Thanks.


FYI:
Just a quick note,
Users Buy & Hold BTC with 0 interest ,
if a PoS coin would increase in value, why would it not receive the same treatment?