I am not concerned about attacks with significant amounts of coins. Big holders have to spend a lot to purchase these coins. It is unlikely someone will be willing to invest heavily into a coin just to attack it.
This is about right; there could be many possibilities to make it happen though, for example, unintentional staking with big amount because of the "greed", let alone pool staking is happening. More or less this is a security hole.
Joe, I would like to understand how Magi Coin's PoS works, could you tell roughly how many coins will be minted by:
- wallet with 1 Magi Coin
- wallet with 10 Magi Coins
- 100, 1000, 10000, 100000 coins?
Let us presume these wallets are online all the time for a month.
It's a bit difficult to estimate a month staking. In general, reward = coinage * APR / 365. To be simple, coinage is about linearly increasing with staking days (within the first four days). As an example, 100 XMG staking gets reward in the 3rd day, then reward = (100*3) * 2.6% / 365 = 0.021 XMG; 1000 XMG will get reward within half day: (100*0.5) * 2.6% / 365 = 0.036 XMG. For 10000, 100000 coins in staking barely gets reward. I assumed above coins are staked in a transaction. One can split 10000 over 10 transactions, that will lead to 10 times of staking with 1000 coins.
Thank you for your answer. It is perfect. I am trying to understand one aspect, please correct me if I am wrong:
1. miners with 0 or small amount of coins will get nothing
2. miners with 100-1000 coins will get best results
3. miners with more than 1000 coins will be penalized and the more coins someone holds (in one transaction) the harsher penalty
My question is about holders with more coins than 1000. Is it correct that such holder will get smaller reward than someone staking 1000 coins (in one transaction)? Is such a reward going to drop almost to 0 for big enough stashes?
I wouldn't call it penalty. Just taking away the advantage against the smaller coin holders. This way, a usual miner with a lower amount of coins wouldn't have a huge disadvantage against exchanges, PoS pools, miners with huge hashpower or investors with a lot of coins who would get much bigger staking amounts usually.