Hi,

I've been reading about Proof of Stake based mining/minting/forging and I seem to miss something about the concept. The way I understand it is that you 'gain' coin by holding on to your existing coins (I've been looking at NXT specifically, not sure this applies to all PoS coins). This means that the more coins I hold the more coins I get. This looks like a problem to me. Wouldn't this lead to hoarding?

The one obvious argument is that if a monopolist arises, no liquidity exists in the market and the price plummets. Thus it's in the interest of the monopolist to keep money flowing. But a monopolist is a thread to the system however benevolent he is.

I'm concerned about the lesser variant in which a bunch of people hoard and constrict the flow of coins.

Am I understanding PoS correctly?