my problem with the cloak instamine was that they mined the total initial coin supply (4.5m) in 7 days and went to a highly inflationary 6% POS reward. this unfairly gave all the coins that could ever be mined to a very small group of people who then staked it @ a whooping 6% and controlled the supply. i knew that type of distribution model was doomed to fail.
I'm pretty sure the masternode PoS rewards rate is higher than 6% and certainly was much higher when the number of masternodes was lower.