There still seems to be some confusion as to why we choose an annual percentage rate over a fixed block.
Traditionally cryptocurrencies have had a fixed block reward like bitcoin, however an annual percentage rate is not abnormal either. Many of projects have used this method as a more stringent way to manage inflation. I understand that not everybody likes annual interest rates, it reminds them of banks. We understand this. However our focus is towards business integration, not payment solutions. Most businesses that are not currently into crypto like the rest of us are put off by fixed block rewards, they understand annual interest rates and compound interest. Businesses like this because its better for their bottom line, they make more over time. The 5% rate has nothing to do with the SEC or US regulations and exchanges aren't forging on the BPL Masterchain so that is totally irrelevant. The annual interest rate also encourages Delegates to hold into more of their tokens due to compounding rewards. Because of this the longer you hold and forge the more BPL you earn over time.
Both systems have their downsides and their upsides.
One thing I would like people looking to become Blockpool delegates to know is that not all of our sidechains will have an annual interest rate like we do. The creator of the sidechain will be able to decide the reward system that best fits their project. To forge on the sidechains it will be a requirement to be a BPL Delegate in good standing. You won't have to be in the top 201 though but a solid uptime is required.
Blockpool delegates will earn more than just Blockpool tokens if they are forging on our sidechains, they will also receive the rewards for the sidechains they choose to forge on. These could be fixed block rewards or percentage rate rewards. BPL Delegates will be able to enable up to 60 sidechains they wish to forge for, assuming their VPS is capable of handing all of those chains. Our Delegate management Software will make it easy to know how many sidechains a specific VPS would be able to handle.
Hopefully this fixes some of the confusion. If anyone has a question as to why we did what we did beyond what I explained here I am more than happy to answer them. We just ask that they are presented in a respectful manner. If you're not happy with the solution nobody is forcing anyone to be a delegate. We do have pools available to vote for that provide consistent payouts and these pools will also be sidechain enabled. If voting for a BPL pool currently isn't up your alley simply because of the annual percentage rate, then my only suggestion is to either wait for sidechains to become enabled and vote for a pool forging on only fixed reward chains.
Regards,
Loco