I've rethunked my initial statement about the new mns requiring more 8bit to run than 112 (which is current amount). I have to say I kind of dig having a lot of mns running at once it makes things interesting... how many will each mn require in new release? If it goes up to 1000 or something I only can run 1 :-S also, Will new 8bitd require 500 mb RAM still :-) ? That would be cool because I'm overflowing with it at this point.
This is still open question (current proposal of collateral is 1024 coins). There are two concurrent objectives:
- security: cheap masternode means people will not stake what introduces a security issue for the network
- fair distribution: expensive masternodes means only small group of people will collect great rewards
However, it can be also balanced using block reward and MN/stake reward ratio (block reward - current proposal 1 coin [current value: 1.2], MN reward - 0.80 [current value: 0.88]). As we can see, inflation will be slightly reduced, though MN will be still much more profitable than staking. This effect is currently mitigated because of no MN payment enforcement, however, with a new code base those payments will be enforced and MN profitability will be stunning. What is not cool from network security perspective. Therefore - I keep this topic open and and I am looking forward for your (not only r8st) feedback.
Some comparisons that perhaps are relevant (networks running well):
PIVX - 1440 PIVX per day inflation : 90% block rewards seesaw algorithm stakers/masternodes : 10% developers
Transfercoin - 9% inflation rate in coins : 50% stakers : 50% masternodes
Both these networks have had reasonable stability. The ratio of stakers to masternodes seems to balance organically as the networks grow.
For 8Bit, if MN rewards are high (~80% of block reward). This will likely result in high investment in masternodes >> price of the coin will go way up >> price of masternode will become too expensive for most people >> more people will begin staking coins.
So probably at that point the distribution of stakers will increase and as a result network security will increase.
@8-bit-party Does this provide relevant feedback or are you looking for something more specific?
Also this is just some initial thoughts, I may be missing something. Please point out flaws if they are there.