The next step in LEOcoin’s evolution
LEOcoin intends to move from a Proof of Work (POW)/Proof of Stake (POS) to a solely POS mechanism. In this regard, I will today post the second of three updates to shed some more light on the reasons, motivations and timing. The source is the last lecture of Mr. Sohail Ramzan on Bali. I have summarized this and will state it as it is for your information only and not further discuss the contents of his presentation.
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Part two:
Details on the Proof of Stake mechanism
• Instead of the random 20 LEO reward per block, it’ll be 1% of the LEOcoins that were staked
• Every LEOcoin has equal chance for POS reward, based on age
• Coin Age = Number of Coins * How Long Since They’ve Moved
• Large batches of LEOcoin that were recently received have the same chances as small batches of LEOcoin that were received a month ago
• Option to turn-off Staking process when you want to spend LEOcoins
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last part tomorrow
Can someone please explain the benefits of POS only mechanism? As I understand, PoW was a secondary purpose of mining to reward miners but the main reason of mining is to solve problems like double-spending, block validation, centralization,... So if people dont get rewards for mining, they stop... So who will solve the blocks? If so many users stop mining, what guaranty users have that LEO mining facility wont centralize it? With small number of miners, 51% share wont be that hard to reach...
http://www.righto.com/2014/02/bitcoin-mining-hard-way-algorithms.html