Re: Bottlecaps 2.1 UPDATE REQUIRED - HARDFORK JULY 4 2014 to 200% Annual PoS
Is Bottlecaps still minable or have all the pools closed down ?
I see there is a maximum amount of coins that can be awarded per stake, is that to limit the annual inflation rate or have I misread ?
I see there is a maximum amount of coins that can be awarded per stake, is that to limit the annual inflation rate or have I misread ?
Yes that is a mechanism to both control inflation but more importantly its function is to increase network security. Without a max reward/stake many people would just keep all their CAPs in a single large block to make life simple (ie open wallet once every 15days and get one stake, recombine into one block, close wallet). By having max/stake people have to have many blocks so they do not go past the max stake. Having many blocks competing for stake gives better security by higher difficulty (better security) and additional inflation control by CAPs method of decreasing reward % as difficulty rises. With higher difficulty and smaller blocks it takes longer to get a stake so you keep your wallet open longer which also helps with peers etc.
A pretty well designed system that works pretty well.
That's what I thought, the capping of the Stake rewards is what is giving this coin a long life, other altcoins have come and gone that use the same kind of PoW/PoS hybridism but with massive stakes though this one has a developer that took over at the reigns that knows how to save things without causing total destruction.