If the PoS reward for Lv1 and Lv2 coins decreases over time... I'm assuming it would be best to hold Lv1 coins for a while before burning them (initially) as they will have low coinage and thus generate Lv1 coins faster than if they were older.
Once a certain point has been reached, I assume burning them to Lv2 would then be far more beneficial as they no longer generate very many Lv1 coins by themselves...
Do you have more information on the rate of decay of the PoS from Lv1 and Lv2 coins? 100% ROI in 1 year from Lv2, and then what's the rate? Approx 1,000 coins in a year, 1,250 coins in 2 years? 1,300 in 3 ... etc.
Thanks.
It is more profitable to immediately burn to LV2, hold all LV1 generated until the ROI is achieved, them burn another one.
You then ride the profit from the first LV2 coin and make additional profit from the newly created LV2 coin.
The rate of decay is 1,000 in a year, 1500 in two years, 1750 in three years, 1875 in four, and so on.
This does not factor in coins generated from the LV1 made.
Ah so only Lv2 coin rewards diminish?
Interesting really... 1,000 Lv1 coins generate 200 coins /yr anyway, so actually holding Lv1 coins for the first year you are ahead of generating Lv2 and holding.
Then if you look at year 2... 1,200 coins produce 1,440 coins which is only 60 less than if you burnt the 1,000 to Lv2 at the beginning.
Then year 3 holding Lv1 coins catches up to the Lv2 burnt with 1,728 coins vs 1,750
Year 4, Lv1 will have netted 2,074 and Lv2 will never catch up.
The risk of holding Lv2 coins just for 60 more Lv1 coins after 2 years is far outweighed by the chance that LevelCoin isn't worth anything in that time frame imo.